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%.

• Operational EBITDA was ₹145.5 crore, a 6% sequential increase and 1.7% YoY growth, with a 15.5% margin.

• 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 $280 million (₹2,484.3 crore), up 6.8% YoY, driven by strong deal conversions and renewals.

• Secured 25+ new AI deals and received over 15 analyst recognitions, including leadership positions in ISG, Forrester, and Everest Group reports.

Financial highlights

• Q2FY26 revenue from operations: ₹940.4 crore ($108.2 mn), up 8.4% YoY and 2.8% QoQ.

• Operating EBITDA: ₹145.5 crore, margin at 15.5% (up 46bps QoQ, down 103bps YoY).

• PAT: ₹97.4 crore, margin at 10.2% (up 25bps QoQ, down 455bps YoY).

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

• Revenue per resource continues to rise, driven by AI-led efficiency and attrition management.

Outlook and guidance

• Focus on geodiversity, AI-led business, and mid-market leadership, with digital modernization and operational efficiencies as strategic priorities.

• Expectation of continued steady profitability and growth, with AI for business transformation anticipated to drive significant industry change in FY27.

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