Jugnauth's centre-right Alliance Lepep swept up 47 out of 62 seats in the Indian Ocean nation's parliament, after voters on Wednesday rejected the ruling party's bid to boost presidential powers.
The coalition of the outgoing ruling Labour Party (PTR) and the former opposition Mauritian Militant Movement (MMM) of ex-prime minister Paul Berenger, took just 13 seats.
Debate over constitutional reform -- notably over a divisive proposal to strengthen presidential powers -- made Wednesday's poll one of the most crucial since the islands gained independence from Britain in 1968.
Outgoing prime minister Navinchandra Ramgoolam accepted defeat late last night even as votes were still being counted.
But the defeat was so crushing that Ramgoolam, who had wanted to run for the presidency, even lost his own seat that he has held for 23 years.
Two other seats went to local parties on the small island of Rodrigues, some 560 kilometres to the east.
The PTR-MMM said that if they won they would try to amend the constitution so the president would be directly elected. The largely ceremonial position is now elected by parliament.
Mauritius is one of the richest countries in Africa, a middle-income country of some 1.3 million people, with a per capita GDP of just over USD 9,000 (7,200 euros).
Both sides campaigned on strengthening the economy, which is based on the textile industry, sugar and tourism.
The country has had only four prime ministers in its history.
Jugnauth and Ramgoolam have alternated posts since 1982, except for a brief interlude between 2003 and 2005 when Berenger served as prime minister. Jugnauth was also president between 2003-2012.
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