Mphasis: Prabhudas Lilladher Recommends 'BUY' with Target Price of Rs 3480

• Mphasis's Q3 revenue growth (+1.5% QoQ CC) surpassed estimates, driven by strong revenue conversion and large deal ramp-ups.
• BFSI sector showed healthy performance (+3.7% QoQ) despite furloughs, while other sectors like TMT faced seasonality.
• The company is focusing on platforms + service delivery and a human-agent model for strategic transformation deals, increasing large deals to 14 in 9MFY26.
• New deal TCV reached USD 428 million (up 22% YoY), contributing to a 9MFY26 deal TCV of USD 1.7 billion (+95% YoY).
• Mphasis maintains EBIT margins within a guided band (14.75%-15.75%) despite utilization drops, with continued investment in platforms and IPs.

Why It Matters: Prabhudas Lilladher recommends a 'BUY' rating for Mphasis, setting a target price of Rs 3480.