Mastek Q2 FY26 Earnings Results

Established in 1982, Mastek is a provider of vertically-focused enterprise technology solutions. Having its presence in IT industry for almost 4 decades, Mastek Ltd has evolved from an IT solutions provider to Digital transformation partner. Presenting below are its Q2 FY26 earnings results.

 

Q2 FY26 Earnings Results

• Revenue from Operations: ₹940.4 crore, up 8.4% YoY from ₹867.4 crore and 2.8% QoQ from ₹914.4 crore.​

• Operating EBITDA: ₹145.5 crore, up 6% QoQ, with EBITDA margin at 15.5% versus 15.0% in Q1 FY26 (but down from 16.5% YoY).​

• Profit Before Tax (PBT): ₹160.6 crore vs ₹148.2 crore YoY; marginal sequential improvement.​

• Net Profit (PAT): ₹97.45 crore, down 24.3% YoY from ₹128.65 crore, though up 5.9% QoQ from ₹91.5 crore in Q1 FY26.​

• EPS: ₹31.46 vs ₹42.6 YoY.​

• Order Backlog (12-month executable): ₹2,484.3 crore, up 13.2% YoY and 5.8% QoQ, indicating solid deal inflows amid global macro softness.​

• Geographic Mix:

  • UK & Europe: 64.5% of revenue, continued as the key growth driver (+11% YoY).

  • North America: 22.6% of revenue, moderate recovery after leadership transitions.

  • AMEA: 12.9%, steady sequential traction.​

• Employee Headcount: ~5,080; attrition at 18.9%, improved 80 bps QoQ.​

 

Operational Highlights

• AI-Led Transformation:

  • Over 25 new AI-focused deals signed and 100 active AI transformation projects underway across BFSI, healthcare, and government clients.​

  • AI, Data & Automation now form 12.2% of total revenues, a 21.6% QoQ growth.​

• Order Pipeline: Healthy continuation of multi-year UK government and healthcare contracts, alongside growing enterprise modernization projects in the US market.​

• Cash Flow: Maintained positive free cash flow for the 12th consecutive quarter, with strong working capital efficiency.​

• Verticals:

  • UK Government & Health Services: Continued double-digit growth and high renewal rates.

  • Digital & Cloud: Modest growth amid slower enterprise IT spending in North America.​

 

Management Commentary

Umang Nahata, CEO & MD, stated:
“Q2 FY26 reflects resilience driven by our AI-led digital transformation strategy and our renewed traction in healthcare and public sector businesses. The expanding order book and strong execution in core markets like the UK and Europe lay a solid foundation for sustainable growth going forward.”.​

Management reiterated confidence in achieving FY26 revenue growth in high single digits in constant currency and maintaining EBITDA margins in the 15–17% range through continued operational efficiency and AI investments.​

 

 

Q1 FY26 Earnings Results

• Revenue: ₹914.4 crore.​

• EBITDA: ₹137.4 crore (margin 15.0%).​

• PAT: ₹91.5 crore.​

• Order Backlog: ₹2,348 crore.​

• AI Revenue Contribution: 10.5% of total income in Q1 FY26 (up to 12.2% in Q2 FY26).

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.