Mphasis reported a 17.4% rise in consolidated revenue from operations to ₹4,580.93 crore for the quarter ended September 30, 2026. Net profit increased 19.6% to ₹561.13 crore in results approved on November 5.
The cash-flow statement adds a different view of the business. For the six months ended September, operating cash inflow fell 53.5% to ₹311.51 crore from ₹669.74 crore a year earlier. The earnings comparison covers one quarter; the statutory cash-flow comparison covers half a year.
The Breakdown
A business can recognise revenue before a customer’s payment reaches its bank account. Profit also includes accounting items that do not involve a cash payment in the same period. Operating cash flow brings collections, operating payments and tax payments into the picture.
Operating profit before changes in operating assets and liabilities was ₹1,659.96 crore in the first half, up from ₹1,438.39 crore. Those balance-sheet movements then absorbed ₹1,131.89 crore, compared with ₹515.31 crore a year earlier. The trade-receivables movement alone absorbed ₹780.92 crore, against ₹245.63 crore.
A payment crossing the reporting date
The company’s investor presentation gives a separate quarterly cash-generation measure. It shows approximately negative $6 million for Q2. Mphasis says cash generation would be $34 million after adjusting for $39.5 million of remittances initiated on September 30 and received in October.
That explanation matters because a payment can be in transit when a reporting period closes. The company’s adjusted figure describes the effect of that timing. It leaves the reported September-period numbers unchanged.
The quarterly dollar measure should be read separately from the six-month rupee operating-cash-flow statement. They cover different periods and should not be mechanically added together or treated as interchangeable.
Collection days remain higher after adjustment
Mphasis reported days sales outstanding, or DSO, of 113 days, up from 95 days in the June quarter and 89 days a year earlier. Its measure includes both debtors and contract assets, expressed in days of sales.
The company puts normalized DSO at 105 days after the same remittance adjustment. That is lower than the reported figure, but still above both comparison periods. Quarter-end payment timing therefore explains part of the increase, rather than removing it.
DSO helps readers follow how much business value sits between revenue recognition and collection. The inclusion of contract assets also matters: the measure extends beyond amounts already billed to customers, so it should not be read as a count of days that every invoice is overdue.
The Crunch
Mphasis grew sales and profit, while more cash was tied up in operating balances across the first half. Its October-receipt explanation gives useful context for the quarter-end position. The next cash-flow disclosures will show how collections and other operating payments develop alongside revenue trends. The September results alone do not establish that the wider cash-conversion gap has closed.
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