Software services company Mphasis reported a modest rise in net profit for the third quarter of FY25, driven by steady growth in revenue and earnings, although its margin showed a slight decline.

Spending by US clients in the banking and financial services (BFS) segment has been recovering gradually since the Federal Reserve began its rate easing cycle in September. The BFS segment, which accounts for nearly half of Mphasis’ overall revenue, saw a nearly 9% revenue growth during the quarter, driven by higher customer spending and a gradual recovery in the mortgage business, the company said.

The company’s total contract value (TCV) grew 46% to ₹2,900 crore during the quarter.

India’s ₹254 lakh crore IT services sector has been cautiously optimistic following third-quarter results, as early signs of a revival in domestic discretionary spending emerged after a period of sluggish growth due to inflationary pressures and geopolitical uncertainty.

Indian IT firms, which are heavily reliant on the US for their revenue, have also expressed optimism about President Donald Trump’s second term, in part due to his proposals to lower taxes and reduce regulations.

Mphasis’ technology, media, and telecom (TMT) segment revenue grew nearly 13% during the quarter, supported by continued order wins.

Shares of the company closed nearly 4% higher ahead of the results.

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