Indian IT firm Mphasis counts on banks to power revenue growth, CEO says

BENGALURU: Blackstone backed Indian IT services firm Mphasis expects its key financial segment to drive sales in the six months through March end, its CEO said, with revenue projected to grow at more than twice the industry’s pace.

Revenue growth for India’s $283-billion IT sector has been muted over the past two years as clients tightened budgets amid macroeconomic uncertainty and U.S. tariff and immigration policy headwinds. That is now starting to change, especially in financial services, where firms are warming up to AI-led projects to boost efficiency and cut costs.

“Enterprise America expects to grow without adding headcount,” CEO Nitin Rakesh said, underscoring that efficiency has become a dominant theme in client conversations.

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Mphasis, which makes half of its revenue from the banking and financial services segment and over 80% from clients in America, said an uptick in spending in the segment has become “more of a formal trend”, indicating a shift from sporadic investments to structured and strategic tech spending.

The company’s deal wins in the first half of the fiscal year that ends on March 31 have surpassed the tally of the whole of the previous fiscal year. It has reported $1.29 billion in new deals in the first half, and projects annual revenue growth to be more than twice the industry average, which analysts at Jefferies estimate at over 6%.

“We’ve had four (U.S.) interest rate cuts in the last twelve months. That also brings into play a little more of the easing of credit situation and consumer confidence,” the CEO said.