Mphasis (526299) investor relations material

Strategic vision and platform evolution

• Focus on transitioning from traditional IT services to an enterprise agency model, emphasizing governed, outcome-driven AI solutions for business transformation.

• Launch of Mphasis Tria™, an enterprise agency platform built on a three-layer architecture: Insight, Foresight, and Execute, designed to convert enterprise knowledge into governed decisions and measurable outcomes.

• Shift from selling effort and capacity to delivering business outcomes, governance, and speed, moving from technology implementation to business transformation.

• Four-pillar transformation thesis: AI-first platform, FDES operating model, ARR revenue transformation, and defining the enterprise agency category.

• Platform strategy includes Modernize and Optimize product lines, targeting process, business operations, and technology stack modernization, as well as continuous commercial and operational performance improvement.

Financial performance and growth drivers

• Achieved $2.1B in FY26 NN TCV, representing 68% YoY growth, with 69% of deals being AI-led.

• FY26 revenue reached $1.8B, with 8.9% direct YoY growth and 15.3% EBIT margin.

• Large deals ($100M+) increased, with a significant shift to fixed-price, outcome-based contracts, driving margin expansion.

• Strategic capital allocation includes 1.5% of revenues to AI platform investments and 0.3% to the Strategic Engagement Team, with a consistent 60% payout ratio.

• Business model evolving over the next three years toward platform + outcomes, ARR compounding, and new operating metrics such as ARR, platform attach rate, and net retention rate to be reported from FY28.

Market positioning and competitive differentiation

• Positioned as a leader in enterprise agency, combining proprietary platforms, domain-specific AI/ML, and deep institutional knowledge to deliver governed, accountable outcomes.

• Differentiation from hyperscalers, AI-native startups, and traditional SIs through brownfield integration, regulatory alignment, and full outcome accountability.

• Strong C-level relationships, reputation for quality engineering, and domain expertise across regulated industries underpin large deal wins and multi-year engagements.

• Strategic Engagement Team (SET) has driven a 4x pipeline growth in 18 months, with average large deal size increasing from $54M to $75M YoY.

• Value-based pricing models now capture a percentage of client value, including platform fees, setup, and managed services.