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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65382
Volume:
10 |
6 |
Jun 2026
Pages:
1-8
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Master of Business Administration
CMR Institute of Technology, Medchal. India
Master of Business Administration
CMR Institute of Technology, Medchal. India
The study titled “Impact of Leveraged Buyouts on Firm Performance and Financial Stability: An Empirical Study of Mphasis” examines whether the Leveraged Buyout (LBO) improved the financial performance, profitability, shareholder value, and financial stability of Mphasis. The research problem focuses on understanding the financial impact of LBOs on a company’s growth and risk profile. The objectives of the study were to evaluate the financial performance of Mphasis before and after the LBO, analyze the impact of the LBO on share price performance, examine changes in revenue, profit, and debt levels, and assess the overall effect of the LBO on the company. The study adopted a descriptive and analytical research design using secondary data collected from annual reports, financial statements, company websites, and stock market reports for the period 2015–2025. Analytical tools such as ratio analysis, stock price trend analysis, comparative analysis, correlation, regression, and hypothesis testing were employed. The findings reveal that revenue, net profit, Return on Equity (ROE), and share prices improved significantly during the post-LBO period. Although debt levels fluctuated, the company maintained financial stability and operational efficiency. The hypothesis test (p-value = 0.003) confirmed a significant difference between pre- and post-LBO performance. The study concludes that the Leveraged Buyout had a positive impact on Mphasis by enhancing profitability, shareholder value, operational efficiency, and long-term financial stability, despite increased leverage and financial risk.
KEYWORDS
The study concludes that the leveraged buyout had a positive impact on the financial performance and financial stability of Mphasis. The analysis of profitability ratios, leverage ratios, liquidity ratios, and market performance indicates significant improvement during the post-LBO period. Revenue growth, net profit, return on equity, and earnings per share showed positive trends after the leveraged buyout. Although the company experienced an increase in debt levels during certain years, effective financial management and operational efficiency helped maintain strong profitability and financial stability. Share price performance also improved, reflecting increased investor confidence and enhanced shareholder wealth. The objectives of the study were successfully achieved through ratio analysis, statistical interpretation, and financial performance evaluation. The research highlights the importance of strategic financial planning, efficient resource utilization, and effective debt management after leveraged buyouts. Overall, the study indicates that the leveraged buyout contributed positively to the growth, operational efficiency, market value, and long-term sustainability of Mphasis. The findings of the research can help managers, investors, researchers, and policy makers better understand the financial and strategic impact of leveraged buyouts in the IT industry.
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Publication Date
6/23/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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