Mphasis shares in focus as IT firm clarifies on FedEx biz

Shares of Mphasis Ltd are in focus on Tuesday morning after the IT firm said called a recent media report 'speculative' and said Mphasis continued to be a service provider to one of its oldest clients FedEx.

The IT firm was replying to stock exchanges regarding rumours of Mphasis losing the FedEx business, which account for 8 per cent of the IT major's total revenue. As per a report by the Mint earlier, FedEx Corp has selected Accenture to do much of its IT work. The report had suggested that the business accounted for $130 million of Mphasis' total $1.61 billion revenues in FY24 and the business arrangement would end soon. 

"As a matter of policy, we do not comment on speculative news articles or individual client relationships or contracts. However, for sake of clarity, Mphasis continues to be a service provider in the FedEx ecosystem," Mphasis said.

"Other aspects of the article are purely speculative. Mphasis management reiterates and stands by its outlook and assessment previously communicated at its prior investor calls and most recent earnings call.

Mphasis shares fell 2.5 per cent to close at Rs 2,494.80 on Monday. The scrip is down 12,61 per cent in 2025 so far against 15.20 per cent drop in the BSE IT index during the same period.

Mphasis said it adheres to the highest standards of governance and disclosures, and any material information requiring disclosures under the applicable regulatory requirements would be promptly communicated to the stock exchanges.

For the March quarter, Mphasis reported a revenue growth of 2.9 per cent  QoQ in constant currency terms, which exceeded analyst estimates of 2.5 per cent QoQ CC). 

PL in a recent note suggested that 80 per cent of Mphasis' portfolio mix maintained a steady state, while the rest of its business mix (L&T and Others) reported a decline of 8 per cent and 3 per cent QoQ, respectively. 

"The continued improvement in large deal wins (13 large deals in FY25) and meaningful conversion of those deals are supporting the growth within BFSI. Despite having booked record high deal TCV of $390 million, the deal funnel still looks encouraging. Even BFS pipeline remains strong at 70 per cent YoY that comes at the back of 58 per cent YoY and 43 per cent YoY recorded in Q3 and Q2, respectively," the brokerage said recently. 

The management was cautioning against second-order impact on BFSI, which might get triggered in H2FY26 and hit the company-wide performance, PL noted.