Mphasis Stock Down by More Than 1% Today As Stock Goes Ex-Dividend

Mumbai, July 9, 2025: Shares of IT services firm Mphasis Ltd experienced a nearly 3% decline on Wednesday, hitting an  low of ₹2,822.10. This dip occurred as the stock traded ex-dividend. At 12:10 p.m. 9th July, the stock is down by 1.41% at Rs 2,868.70.

Ex-Dividend Pressure Drags Stock

The initial and temporary drop in Mphasis shares is directly linked to the ex-dividend date, which is today, 9th July 2025. This date is the cut-off for investors to be eligible for the company’s recommended final dividend of ₹57 per share for the financial year that ended on 31st March 2025. This payout is consistent with previous dividends of ₹55 in July 2024 and ₹50 in July 2023. Typically, a stock’s price tends to drop by an amount roughly equivalent to the dividend on its ex-dividend date, as new buyers will not receive the payout.

As of the latest update, Mphasis’ market capitalisation stood at ₹54,259.15 crore. The stock has traded within a 52-week high of ₹3,239.55 and a 52-week low of ₹2,025.05.

Robust Q4 Performance

Despite the share price movement, Mphasis announced strong financial results for Q4 FY25. The company’s net profit increased by 13.6% year-on-year, reaching ₹446.5 crore, up from ₹393.21 crore in the same quarter last year. This growth was primarily driven by improved margins and increased revenue from the Banking, Financial Services and Insurance (BFSI) sector.

Revenue from operations also saw a significant climb, rising by 8.7% to ₹3,710 crore, compared to ₹3,412 crore in Q4 FY24. Operating margins stood at 15.3%, showing an improvement from 14.9% and 15.1% in the previous fiscal periods.

Deal Wins Drive Outlook

Mphasis maintains its margin guidance band of 14.75% to 15.75% and anticipates growth above the industry average, supported by a strong pipeline of deals. Notably, the total contract value (TCV) of new deals secured in Q4 more than doubled, reaching $390 million (approximately ₹3,330 crore) from $177 million a year ago.

What is Ex-Dividend?

The term “ex-dividend” refers to the period during which a stock trades without the right to receive the next declared dividend payment. It’s a crucial date for investors who wish to receive dividends.

Here’s how it works:

• Declaration Date: This is when a company’s board of directors announces that they will pay a dividend, along with the amount, record date, ex-dividend date, and payment date.
• Record Date: This is the date on which a company checks its shareholder records to determine who is eligible to receive the dividend. Only those shareholders whose names appear on the company’s books by the end of this date will get the dividend.
• Ex-Dividend Date (Ex-Date): This is the most important date for investors buying or selling shares. It’s usually set one business day beforethe record date in India due to the T+1 (Trade date + 1 business day) settlement cycle.
  • If you buy a stock before the ex-dividend date, you are entitled to receive the dividend.
  • If you buy a stock on or after the ex-dividend date, you are not entitled to receive the dividend; the seller will receive it.
  • On the ex-dividend date, the stock’s price typically adjusts downwards by roughly the amount of the dividend, as the right to that payment has now been separated from the share.
• Payment Date: This is the date when the company actually pays out the dividend to the eligible shareholders.

In simple terms, to receive the upcoming dividend, you must purchase the shares and hold them in your demat account before the ex-dividend date.

What’s Next?

Despite the ex-dividend dip, Mphasis is showing strong recovery momentum backed by solid Q4 FY25 results. With net profit up 13.6%, revenue rising 8.7%, and TCV of new deals more than doubling, investor sentiment remains positive. The reaffirmed margin guidance and BFSI-led growth indicate sustained performance ahead. As deal wins continue to fuel confidence, the stock may see renewed buying interest. However, broader market trends and global IT spending outlook will play a key role in determining its near-term trajectory.

Company Snapshot

Mphasis is a global technology services provider that assists enterprises in their digital transformation journeys. The company describes itself as the “Driver in the Driverless Car,” offering scalable and sustainable software solutions through cutting-edge design and architecture.

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