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The market expects much less from Mphasis than it has delivered before.
At today’s share price, buyers are assuming Mphasis grows about 0% a year, forever. Over the last ten years it actually grew about 8% a year. That is a big step down from its own record — in other words, that it stops growing altogether. Either the market can see a problem that the published accounts do not show yet, or it is expecting a slowdown that has not happened.
- How it is valued: Discounted cash flow.
- What the price assumes: 0% growth, against 8% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Mphasis' revenue went from ₹6,546 crore to ₹15,880 crore — it compounded at about 12% a year over 8 years.
- Biggest swing factor: Banking IT spend. Main risk: Client concentration.
01IT services for financial companies
Mphasis, based in Bengaluru, provides application, infrastructure and digital services, with banking, financial services and insurance its largest market. Blackstone bought control from Hewlett Packard Enterprise in 2016.
It has historically relied on a few large clients and channel partners, and has been diversifying its client base.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Mphasis, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Mphasis' record, in plain numbers
Between FY2018 and FY2026, Mphasis' revenue went from ₹6,546 crore to ₹15,880 crore — it compounded at about 12% a year over 8 years. Net profit grew from ₹838 crore to ₹1,863 crore, about 11% a year — roughly in step with revenue. Net margin has been unusually stable, between 11.7% and 13.9% in every year shown. The latest year added 11.6% to revenue, close to its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 6,546 | 838 | 12.8% |
| FY2019 | 7,731 | 1,073 | 13.9% |
| FY2020 | 8,844 | 1,185 | 13.4% |
| FY2021 | 9,722 | 1,217 | 12.5% |
| FY2022 | 11,961 | 1,431 | 12.0% |
| FY2023 | 13,798 | 1,638 | 11.9% |
| FY2024 | 13,279 | 1,555 | 11.7% |
| FY2025 | 14,230 | 1,702 | 12.0% |
| FY2026 | 15,880 | 1,863 | 11.7% |
04How Mphasis gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Mphasis' value
Banking IT spend
US bank and insurer budgets drive demand.
Client diversification
Reducing reliance on a few clients.
Margins
Steady margins support cash flow.
AI services
New AI work could add growth.
06What could go wrong
- Client concentration. A few clients matter a lot.
- Mortgage cycle. US mortgage activity affects some work.
- Ownership changes. A Blackstone sale could change strategy.
07What the full Mphasis valuation shows
Sign in free to see the complete Mphasis valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Mphasis' value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Coforge, Persistent and other IT firms
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Mphasis
Who owns Mphasis?
Blackstone has been the controlling shareholder since 2016.
What is Mphasis' biggest market?
Banks and insurers, mostly in the US.
Mphasis or Coforge — what is the difference?
Both are mid-sized IT firms; Mphasis is more concentrated in banking.
Is Mphasis overvalued?
At ₹2,455 the market is pricing in roughly 0% sustained growth, against the ~8% its own record supports. That is less than it has delivered — on these numbers the market is asking the business for less than its own record, which usually means it doubts the record repeats.
What is the intrinsic value of Mphasis?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.