Mastek (MASTEK) Q4 24/25 earnings summary

Executive summary

• FY2025 revenue from operations grew 13.1% year-over-year, with net profit up 20.9% compared to FY2024; consolidated results audited and approved for the holding company and 22 subsidiaries.

• U.K. and Europe core business delivered strong growth, especially in digital services, Data, and AI, with U.K. revenue up 17.2% year-over-year and 9.4% quarter-on-quarter.

• North America saw 16% year-over-year growth but an 8% sequential decline; Oracle business in the region grew over 50% year-over-year.

• Healthcare, particularly NHS in the U.K., experienced over 100% year-over-year growth, driven by policy and data/AI initiatives.

• Q4FY25 revenue reached ₹905.4 crore, up 12.3% YoY in constant currency, with operating EBITDA at ₹138.8 crore, up 10.9% YoY.

Financial highlights

• FY25 revenue was ₹3,455.2 crore, growing 10.8% YoY in USD terms; PAT for FY25 rose 20.9% YoY to ₹375.9 crore.

• Total cash and cash equivalents increased to INR 622 crores from INR 473 crores last year.

• Final dividend of INR 16 per share (320% of face value) recommended for FY25.

• 12-month order backlog at ₹2,290.9 crore, up 1.7% YoY in USD terms; effective growth closer to 7-8% adjusting for timing.

• FY25 basic EPS at ₹121.8, up from ₹98.0 in FY24.

Outlook and guidance

• Expect continued strong growth in U.K. and Europe, especially in secure government services and healthcare.

• Focus on AI-driven business transformation, with the launch of an AI Engineering Center of Excellence and ADOPT.AI suite.

• U.S. business undergoing structural reset; operational efficiency and innovation-led programs are priorities.

• Targeting EBITDA margin range of 17-19% by end of FY2026, with operational efficiency as a key driver.

• Continued investment in talent transformation and AI data readiness, with 3,600 employees upskilled.