Mphasis Limited (NSE:MPHASIS) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Mphasis Limited (NSE:MPHASIS) filed its quarterly result this time last week. The early response was not positive, with shares down 3.6% to ₹2,784 in the past week. Mphasis reported in line with analyst predictions, delivering revenues of ₹39b and statutory earnings per share of ₹24.54, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mphasis after the latest results.

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After the latest results, the 34 analysts covering Mphasis are now predicting revenues of ₹157.0b in 2026. If met, this would reflect an okay 5.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.7% to ₹99.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹156.2b and earnings per share (EPS) of ₹99.27 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Mphasis

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹3,024. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Mphasis analyst has a price target of ₹3,549 per share, while the most pessimistic values it at ₹2,140. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Mphasis shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Mphasis' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Mphasis is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Mphasis going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Mphasis that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.