Mphasis' Q1 Deal Wins Reflect Big Bet On AI

Mphasis Ltd., which posted its first quarter earnings late on Thursday, is seemingly betting big on artificial intelligence. Around 68% of the deals won by the company in the April-June period are AI-led.

The IT firm clocked its highest-ever total contract value of $760 million in Q1 FY26, nearly double from $390 million in the previous quarter.

Mphasis' revenue during the quarter under review came in at Rs 3,732.4 crore, which is up 0.6% sequentially. The margins remained flat at 15.26%.

Mphasis’ Q1 results show more than just execution, as they signal a strategic pivot towards AI as the core business lever. The company has increased the share in AI-led contract wins from 30% a year ago to around 68% as of June-end, with a rapidly expanding pipeline.

The company has over 250 AI/ML models available on major cloud marketplaces, has also developed proprietary AI platforms—NeoZeta, NeoCrux and NeoSaBa—that combine generative and agentic AI.

Enterprises are prioritising cost optimisation, efficiency, and vendor consolidation, with AI emerging as the answer to all three.

Importantly, Mphasis highlighted that clients are funding AI initiatives from existing budgets, which indicates that AI has become mission-critical rather than experimental.

The company introduced the Mphasis AI Superhighway solution, which aims to accelerate enterprise AI adoption, and 50-60% "faster time to market" and up to 90% accuracy rates.

This could be an inflection point for the company, as AI deal ramp-ups is something to watch out for going ahead.