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.