Mastek (MASTEK) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered predictable growth, with strong demand for AI-led transformation deals and positive market sentiment across key geographies.

• 40+ new AI-led opportunities closed in the quarter, with a 25% year-over-year increase in 12-month order backlog and AI order backlog reaching $64 million.

• U.K. and North America businesses showed sequential growth, while Middle East faced headwinds due to geopolitical instability.

• Recognized as a challenger and standout in multiple industry analyst reports, including Avasant, ISG, and Gartner.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2026, were approved and published, reflecting continued business operations across multiple geographies.

Financial highlights

• Q1 revenue was ₹98,530 lakhs (₹985.3 crore), up 7.7% YoY and 5% QoQ; operating EBITDA margin stood at 15.4%.

• PAT for Q1FY27 was ₹10,588 lakhs (₹105.9 crore), up 15% YoY, with a margin of 10.6%.

• Basic EPS rose to ₹34.2, diluted EPS to ₹33.9 for Q1FY27.

• 12-month order backlog reached $310 million, up 13.3% YoY in USD terms.

• Net cash and investments improved by ₹200 crore over two quarters; cash and cash equivalents increased to ₹945.4 crore.

Outlook and guidance

• U.K. business expected to maintain growth momentum; North America to become a growth engine by H2 FY27.

• Healthcare vertical in U.K. and U.S. anticipated to return to sequential growth from Q2 and ramp up further in H2.

• Multi-year, multi-million dollar strategic engagements in healthcare, retail, and manufacturing signal robust future pipeline.

• FY27 performance projected to surpass FY26, with continued focus on AI transformation and order backlog execution.

• The company continues to monitor regulatory changes, particularly regarding the new Labour Codes, and will adjust financial reporting as needed.