Mphasis flags Q1 margin squeeze as EBIT margin slips 60 bps to 14.8% while FY27 guidance is reaffirmed
AI Market Summary
Mphasis' June-quarter results beat revenue expectations but showed margin compression, while management reiterated FY27 revenue and EBIT margin guidance and highlighted a record deal pipeline and strong deal wins. The mixed print supports a two-sided near-term read-through for IT services: demand visibility appears improved, but execution and cost pressure remain in focus. JPMorgan's maintained 'Overweight' underscores confidence despite margin miss.
Impact level
● Low
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● Neutral
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Mphasis reported FY2025 Q1 results with 2.1% quarter-on-quarter constant-currency revenue growth, beating market expectations, while EBIT margin fell 60 basis points to 14.8%. The company reiterated its FY27 revenue and margin guidance and said its deal pipeline reached a record level, up 28% year-on-year. JPMorgan maintained an 'Overweight' rating with a target price of ₹2,600.
