Mastek (MASTEK) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 delivered stable results with 3.6% sequential revenue growth and maintained EBITDA margin at 16.1% despite macro and geopolitical headwinds.

• FY 2026 revenue totaled ₹3,698.8 crore (up 7.0% YoY), with operating EBITDA at ₹585.6 crore and margin at 15.8%.

• 12-month order backlog grew 13.6% YoY in USD terms, supporting a positive outlook for FY 2027.

• Over 85 new AI deals secured in FY26, with 27 new AI-focused programs added in Q4, driving efficiency and stable margins.

• FY 2026 marked a fundamental reset, especially in North America and AMEA, with renewed focus on healthcare, BFSI, and retail verticals.

Financial highlights

• Q4 revenue: $103.5M (up 1.4% sequentially), operating EBITDA at 16.1%.

• FY 2026 revenue: $421.2M (up 3.1% YoY), EBITDA margin at 15.8% (flat YoY).

• PAT for Q4: INR 106 crore (down 0.7% sequentially); FY PAT: INR 404 crore (up 7.5% YoY).

• 12-month order backlog: $300.4M (up 1.5% sequentially, 13.5% YoY in USD, 24.4% YoY in INR).

• Operating cash flow: INR 542 crore (up 35% YoY); cash and equivalents: INR 938 crore (up 51% YoY).

• DSO reduced to 73 days, lowest in 12 quarters.

• Final dividend of INR 16/share declared, in addition to INR 8 interim dividend.

Outlook and guidance

• Management expects FY 2027 to be a growth year, with revenue ramp-up from the strong order backlog.

• Margin expected to remain stable at 16.1% for FY 2027, balancing operational efficiency and AI investments against pricing pressure.

• Continued focus on AI-led transformation and digital engineering services.

• Strategic wins in healthcare, government, and financial services expected to drive future growth.