Brokerage sees nearly 26% upside in this IT stock; maintains 'Buy'
Elara noted that healthy banking spreads, along with sustained deal-making activity in the US -- including mergers, acquisitions and IPOs -- are likely to keep earnings momentum intact over the medium term.
- Jan 23, 2026,
- Updated Jan 23, 2026 12:13 PM IST
Elara Capital has maintained a 'Buy' rating on Mphasis Ltd and raised its target price, which implied a potential upside of nearly 26 per cent from current levels.
In its post-results note, the brokerage said Mphasis' Q3FY26 performance was largely in line with its estimates, supported by a strong earnings environment at US and European banks.
Elara noted that healthy banking spreads, along with sustained deal-making activity in the US -- including mergers, acquisitions and IPOs -- are likely to keep earnings momentum intact over the medium term.
Given that more than 60 per cent of Mphasis' revenue comes from the BFSI segment, the brokerage expects the company to see a stronger uplift compared with peers. Elara highlighted that the company's deal pipeline has expanded 2.5 times since Q2 FY24, while its order book has remained above $300 million for five consecutive quarters.
The last twelve-month total contract value (TCV) stood at $2.1 billion, providing strong revenue visibility. Mphasis has reiterated its aspiration to grow at twice the market rate, the brokerage added.
On the financial front, Mphasis reported a 7.7 per cent year-on-year (YoY) growth in revenue in dollar terms for Q3 FY26, while revenue in Indian rupee terms rose 12.4 per cent. Direct revenue increased 9.8 per cent YoY, whereas revenue from DXC declined 20.3 per cent in dollar terms during the quarter.
Growth continued to be led by the Americas, which posted a 10 per cent YoY increase, followed by the rest of the world (RoW) segment, up 7.7 per cent. However, the EMEA region and India reported declines of 0.9 per cent and 10.3 per cent, respectively, in dollar terms.
Meanwhile, Mphasis shares were last seen trading 2.62 per cent lower at Rs 2,739.05 in Friday's trade. At this price, Elara Capital's target price of Rs 3,440 suggests an upside potential of 25.59 per cent.
Separately, Mayuresh Joshi, Head of Equity Research at William O'Neil India, had earlier noted that the company's increasing focus on artificial intelligence (AI) could support growth in the coming quarters.
Elara Capital has maintained a 'Buy' rating on Mphasis Ltd and raised its target price, which implied a potential upside of nearly 26 per cent from current levels.
In its post-results note, the brokerage said Mphasis' Q3FY26 performance was largely in line with its estimates, supported by a strong earnings environment at US and European banks.
Elara noted that healthy banking spreads, along with sustained deal-making activity in the US -- including mergers, acquisitions and IPOs -- are likely to keep earnings momentum intact over the medium term.
Given that more than 60 per cent of Mphasis' revenue comes from the BFSI segment, the brokerage expects the company to see a stronger uplift compared with peers. Elara highlighted that the company's deal pipeline has expanded 2.5 times since Q2 FY24, while its order book has remained above $300 million for five consecutive quarters.
The last twelve-month total contract value (TCV) stood at $2.1 billion, providing strong revenue visibility. Mphasis has reiterated its aspiration to grow at twice the market rate, the brokerage added.
On the financial front, Mphasis reported a 7.7 per cent year-on-year (YoY) growth in revenue in dollar terms for Q3 FY26, while revenue in Indian rupee terms rose 12.4 per cent. Direct revenue increased 9.8 per cent YoY, whereas revenue from DXC declined 20.3 per cent in dollar terms during the quarter.
Growth continued to be led by the Americas, which posted a 10 per cent YoY increase, followed by the rest of the world (RoW) segment, up 7.7 per cent. However, the EMEA region and India reported declines of 0.9 per cent and 10.3 per cent, respectively, in dollar terms.
Meanwhile, Mphasis shares were last seen trading 2.62 per cent lower at Rs 2,739.05 in Friday's trade. At this price, Elara Capital's target price of Rs 3,440 suggests an upside potential of 25.59 per cent.
Separately, Mayuresh Joshi, Head of Equity Research at William O'Neil India, had earlier noted that the company's increasing focus on artificial intelligence (AI) could support growth in the coming quarters.