Mastek (MASTEK) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 operating revenue reached ₹940.4 crore, up 8.4% YoY and 2.8% sequentially, with constant currency growth of 0.2%.

• Operating EBITDA was ₹145.5 crore, a 1.7% YoY increase, with a margin of 15.5%.

• Net profit for the quarter was ₹97.4 crore, up 6% QoQ but down 24% YoY due to an exceptional gain in the base quarter; normalized profit grew 14% YoY.

• 12-month order backlog reached ₹2,484.3 crore ($280 million), up 6.8% YoY, driven by healthy deal conversions and renewals, especially in the U.K.

• Secured 25+ new AI deals across technology, business, and data segments.

Financial highlights

• DSO improved to 80 days from 82 in Q1 and 95 in Q2 last year, reflecting strong working capital discipline.

• PAT margin was 10.2% (up 25bps QoQ, down 455bps YoY).

• H1FY26 revenue was ₹1,855.1 crore, up 10.4% YoY; H1FY26 PAT was ₹189.5 crore, down 5.3% YoY.

• Cash and cash equivalents at Q2FY26 end stood at ₹656 crore.

• Basic EPS for Q2FY26 was ₹31.5.

Outlook and guidance

• Continued focus on geodiversity, AI-led growth, and mid-market leadership.

• Expectation of steady profitability and improved bottom line as AI-led efficiencies are realized.

• Macro uncertainties and slower decision-making, especially in North America, may impact short-term growth, but long-term outlook remains positive.

• Auditor’s review found no material misstatements or non-compliance in the financial statements.