Mphasis up 2% on innovation program update; PL Capital upgrades to 'Buy'

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Shares of AI-led, platform-driven technology solutions provider Mphasis were trading higher on Thursday, December 3, after the company announced that under its Sparkle Innovation Program, it is collaborating with startups, academic institutions, and research partners to rapidly co-innovate and scale transformative solutions for enterprise clients. 

 

Following the announcement, the IT company’s stock price rose 2.52 per cent to ₹2,933.10 during intraday trade.

 

Through this program, Mphasis has been actively engaging with Nasscom’s InnoTrek participants, particularly US-based startups, offering mentorship, enterprise solution guidance, and customer access. In the 2025 edition, the company partnered with five standout startups from the InnoTrek cohort — Edgeable AI, Perpetuuiti Technosoft, QuoQo, and SuperBryn AI — helping them refine their offerings and connect with enterprise clients globally, according to a company statement.

 

“At Mphasis, we develop our solutions in-house while actively seeking innovative partnerships, particularly with startups that address region-specific challenges. In a world where speed and agility are crucial, this dual approach enables us to deliver faster, more effective solutions to our clients. We value our ongoing collaboration with Nasscom on InnoTrek and look forward to engaging with this year’s startup cohort,” said Srikumar Ramanathan, chief solutions officer, Mphasis.

 

The stock continued to attract buying interest on Thursday. At 1:00 PM, Mphasis shares were trading at ₹2,916.20, up 1.93 per cent from the previous close of ₹2,861.00 on the NSE. The benchmark Nifty 50, meanwhile, was trading with marginal gains of 11.55 points, or 0.04 per cent, at 25,997. A combined total of 0.65 million equity shares worth ₹192 crore had changed hands on the NSE and BSE so far during the day.

PL Capital upgrades to 'Buy'

Domestic brokerage PL Capital has upgraded its rating on Mphasis shares to ‘Buy’ from ‘Accumulate’, with a revised target price of ₹3,310 per share, up from ₹2,950, citing steady and consistent performance driven by an elevated deal TCV and robust conversion. The brokerage noted that the deal funnel appears encouraging for both BFS (+45 per cent Y-o-Y) and non-BFS (+139 per cent Y-o-Y) in Q2FY26.

 

PL Capital estimates USD revenue CAGR of 9.8 per cent and INR earnings CAGR of 15.2 per cent for FY26-28E. “The stock is currently trading at 25x and 21x its FY27E and FY28E earnings, respectively. We assign a PE multiple of 27x to Sep’27E earnings to arrive at a target price of ₹3,310 and upgrade to ‘BUY’,” the brokerage said in its report.

 

The brokerage also highlighted that the pain within the Logistics & Transportation (L&T) vertical has subsided, and performance is expected to see a progressive turnaround through H2FY26 and FY27, driven by focused investment in potential accounts. “Ex-L&T, USD revenue grew by 15.7 per cent Y-o-Y in H1FY26, during which L&T saw a ~55 per cent Y-o-Y decline. Ex-L&T, USD revenue reported a CQGR of 3.5 per cent and 2.5 per cent over the past four and eight quarters, respectively, which is encouraging considering the current volatile environment,” PL Capital said. 

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