Mphasis Ltd

Grant Details

• Grant of 415,060 ESOPs under ESOP 2016 approved; grant date 20 August 2026; exercise price ₹2,371.
• Vesting period five years; vesting proportion as approved; exercise period 60 months from vesting.
• Each option entitles one equity share of ₹10.
• Grant of 92,400 RSUs under RSU Plan 2021; grant date 20 August 2026; price ₹10.
• RSUs vest over four years with equal vesting; automatic exercise option for eligible grantees.
• US employees subject to automatic exercise per US tax code.
• Exercisable period for RSUs not automatically exercised is 48 months from vesting.
• RSUs entitle one share of ₹10 each.

RSU Allotment Update

• RSU Compensation Committee approved allotment of 700 equity shares under RSU Plan 2021 on 20 August 2026.
• Mphasis Employee Benefit Trust will deduct shares to cover the exercise price and taxes.
• Deductions will occur at vesting/exercise after shareholder approval at the 30th AGM held on 29 September 2021.
• Proceeds from deducted shares will repay company loans and taxes.
• Details are available on the company's website.

Publication submission

• Submits newspaper publication dated 18 August 2026 for BSE/NSE records.
• Newspapers: Business Standard (English) and Samyuktha Karnataka (Kannada).
• Publication also available on company website.
• Signed by Mayank Verma, Senior Vice President & Company Secretary.

Upcoming investor meetings

• Emkay Confluence 2026 Conference on Aug 12, 2026 in Mumbai (One-One & Group).
• Equirus Annual India Conference on Aug 13, 2026 in Mumbai (One-One & Group).
• Motilal Oswal Annual Global Investor Conference on Aug 18, 2026 in Mumbai (One-One & Group).

ESG rating update

• CRISIL ESG rating upgraded to 67 (from 64) and Core ESG to 73 (from 69).
• Rating independently assigned by CRISIL using publicly available information; Mphasis did not engage CRISIL.
• Communication date: August 6, 2026.
• No internal financial data or metrics disclosed.
• Information also available on Mphasis website.

ESG rating update

• EcoVadis FY26 sustainability assessment: Mphasis awarded Silver Medal with a 75/100 score.

Financial Performance

• Q1 FY27 revenue was $471 million, up 2.1% sequentially and 8.3% YoY in CC.
• Direct revenue was $465 million, up 2.2% sequentially and 9.9% YoY in CC.
• EBIT margin for Q1 FY27 declined 60 bps due to ramp-up and TAP costs.
• EPS INR 25.6, down 4% sequential.
• Operating cash flow was USD 39 million in the quarter.
• DSO was 95 days; improvement expected through the year.
• Net new TCV for Q1 was $461 million; fifth consecutive quarter above $400 million.
• AI-led deals rose to 63% of Q1 TCV wins; pipeline up 8% sequential, 28% YoY.

Platform and AI Momentum

• Tria platform launch; within seven weeks, opportunities moved from conversation to closure.
• Pipeline now 2.8x original size since Mphasis.ai launch; all-time high by end of Q1.
• AI-led deals rose to 70% of pipeline; AI embedded across all deal types.
• Trailing TCV stands at over $1.8 billion; three large deals in Q1 including one over $100 million.
• Modernize and Everything-as-a-Platform are strongest growth archetypes driving pipeline.
• ARR and managed services are bundled into Tria deals for platform-attached revenue.

Guidance and Outlook

• FY27 growth guidance remains high single-digit to low double-digit in CC.
• EBIT margin guidance remains 14.75% to 15.75%; 80% OCF conversion through FY27.
• Q2 is positioned to deliver best sequential CC growth in three years.

Deals and Transactions

• Red Oak consolidation is baked into the outlook; start around end-August, not full Q2 impact.
• Vendor consolidation assignments are in progress; closure expected by Aug-end/early Sep.

Q&A Highlights

• OCI hedge losses down about INR 50 crores from March to June; expect further improvement.
• Insurance margin to normalize over the next two quarters after transformation ramp.
• Seasonality and upfront payments muted OCF; ~80% OCF target remains guiding plan.
• TTM TCV-to-revenue correlation fell to 0.74 due to short-burst deployment deals.
• FDE model uses onsite pods of 3–5 elite engineers; high billing rates and platform stickiness.
• Competitive intensity shifting toward AI deployment and outcome-based deals rather than price play.

Encumbrance refinancing actions

• Event: release of encumbrances and creation of fresh encumbrances on promoter shares.
• Release of encumbrances on promoter shares of MphasiS Limited to existing lenders.
• Creation of fresh encumbrances on promoter shares for new lenders.
• No change in promoter shareholding in Mphasis Limited.
• Reason: refinancing existing financing arrangements.