IT solutions provider Mphasis announced a robust 11.4% year-over-year revenue growth for the second quarter of fiscal year 2026, a performance heavily attributed to its strategic, early investments in artificial intelligence.[1][2] The company's gross revenue reached ₹39.02 billion, with net profit rising 10.8% to ₹4.69 billion.[1][2] While the strong top-line growth signals continued momentum, the company reported a moderation in new deal wins, securing a total contract value (TCV) of $528 million in its direct business.[1][2] This figure, while substantial, represents a decrease from the record-breaking $760 million in TCV achieved in the preceding quarter, the highest in the company's last eight quarters.[2] Despite this easing, the company's leadership emphasized that its "AI first" approach continues to secure high-value contracts and positions it as a key partner for enterprises navigating complex digital transformations.[3][4][2]

The company's financial results for the quarter ending September 30, 2025, reflect a consistent growth trajectory, with a 5.3% sequential increase in gross revenue and a 6.2% sequential rise in net profit.[1] Direct revenue, a key performance indicator, showed strong growth, increasing by 13.4% year-over-year on a reported basis.[5] This performance is set against a backdrop of a resilient but shifting global IT services market, where clients are increasingly prioritizing investments that deliver efficiency and competitive advantage through technologies like AI.[6][7][8] Mphasis's ability to sustain double-digit growth underscores the success of its strategy focused on next-generation services, which constituted 87% of the quarter's deal wins.[1][3] CEO and Managing Director Nitin Rakesh stated that the company's early, focused investments in AI have positioned Mphasis as a strategic partner for clients, calling the strong quarter of TCV wins a "testimony to our AI first approach delivering business outcomes, across diverse industries."[3][4][2]

A central pillar of Mphasis's growth narrative is its deep and expanding focus on artificial intelligence, a strategy that is now bearing significant fruit. The company's deal pipeline is heavily weighted towards AI, with 69% of prospective deals being AI-led.[1][5] This focus is a direct continuation of the momentum seen in the first quarter of FY26, where a remarkable 68% of the record $760 million in deals were driven by AI initiatives.[1][5][9][10] To further solidify its position, Mphasis recently launched NeoIP, a unified AI platform designed to help enterprises modernize their operations.[1][11][12][13] At the core of NeoIP is a proprietary technology called Ontosphere, which uses dynamic knowledge graphs to map and understand complex relationships between data, applications, and business processes.[11][12] The platform integrates Mphasis's own AI tools with partner technologies and is designed to be open, allowing for integration with third-party AI agents.[11] Mphasis claims that early adopters of the platform have reported significant efficiency gains, including up to a 60% improvement in development and modernization.[11][13][14]

The company's performance and strategic direction reflect broader trends shaping the technology and AI services industry. The global AI market is projected to experience exponential growth, with some estimates suggesting it could contribute up to $4.4 trillion annually to the global economy.[15][7] As enterprises move beyond experimental AI pilots to full-scale implementation, they are increasingly seeking partners who can integrate AI into core business functions to drive tangible outcomes like cost savings and operational efficiency.[16][7] Mphasis's emphasis on delivering savings-led transformations through AI, as seen in recent deals with asset servicing and life insurance firms, directly addresses this demand.[9][17] The company's stated goal is to grow at more than twice the industry rate, a target it believes is achievable by leveraging its AI-centric offerings and strong first-half performance.[3] This strategy appears to be well-positioned within an IT spending landscape where AI, cloud services, and cybersecurity are top priorities for organizations globally.[6]

In conclusion, Mphasis's latest quarterly results present a picture of a company successfully capitalizing on the AI revolution. The 11.4% revenue growth demonstrates its ability to win in a competitive market, while the significant portion of its business now tied to AI showcases a successful strategic pivot.[1] The easing of deal wins from a record high in the previous quarter will be an area for observation, but the underlying health of its AI-driven pipeline suggests a strong foundation for future performance. By embedding AI into its core service delivery and launching platforms like NeoIP, Mphasis is not merely participating in the AI trend but is actively shaping how enterprise clients adopt and benefit from this transformative technology.[11][12] As the AI services market continues its rapid expansion, the company's early and focused investments have established a strong competitive position, signaling its intent to be a leader in the next wave of IT services.