Mastek (MASTEK) Q3 25/26 earnings summary

Executive summary

• Q3FY26 focused on strengthening core fundamentals, expanding AI and digital engineering, and consolidating leadership, with unaudited consolidated and standalone results approved by the Board.

• Achieved 4.2% YoY revenue growth to ₹905.7 crore, with total income up 5.4% YoY and operating EBITDA margin at 16.1%.

• 12-month order backlog reached ₹2,658.5 crore, up 24.3% YoY and 18.4% YoY in USD terms.

• Interim dividend of ₹8 per share (160% of face value) declared, payable by February 17, 2026.

• Merger of Mastek Enterprise Solutions Private Limited completed, with restated standalone financials.

Financial highlights

• Operating revenue was ₹905.7 crore, up 4.2% YoY, but down 3.7% sequentially; total income up 5.4% YoY.

• PAT for Q3FY26 was ₹108.4 crore, up 14.4% YoY and 11.2% sequentially; PAT margin improved to 11.7%.

• Net cash position at ₹346 crore, with cash and cash equivalents at ₹798.8 crore at Q3FY26 end.

• Basic EPS for Q3FY26 was ₹35.0, up from ₹30.7 YoY.

• DSO increased to 84 days from 80 days due to UK holiday season delays.

Outlook and guidance

• Strong demand expected in healthcare, life sciences, and public sector, especially in UK, US, and EMEA.

• Confident in sequential growth returning in Q4, with new programs ramping up and strong order backlog.

• FY27 expected to be stronger than FY26 as core fundamentals are now in place.

• EBITDA margin guidance maintained at 16.5%-17%.

• Company continues to monitor regulatory changes, including new Indian labour codes.