Highlights
- Revenue from operations rose 3.6% YoY to Rs 938.0 crore in Q4FY26.
- Order backlog expanded 24.4% YoY, reflecting improved medium-term revenue visibility.
- Net profit increased 30.9% YoY, while EBITDA margin remained at 16.1%.
Mastek Limited (NSE:MASTEK) reported revenue from operations of Rs 938.0 crore in Q4FY26, registering a 3.6% year-on-year increase. On a sequential basis, revenue grew 3.6% from Rs 905.7 crore in Q3FY26. Total income stood at Rs 961.9 crore, up 5.8% YoY.
Operating EBITDA came in at Rs 150.7 crore, reflecting an 8.6% YoY increase, while EBITDA margin stood at 16.1%, compared to 15.3% in Q4FY25. Net profit rose to Rs 106.2 crore, marking a 30.9% YoY growth, though it declined 2.0% sequentially. Net profit margin was reported at 11.0%.
For FY26, revenue from operations increased 7.0% YoY to Rs 3,698.8 crore, while net profit rose 7.5% to Rs 404.0 crore.
Order Book and Deal Momentum
The company’s 12-month order backlog stood at Rs 2,849.2 crore as of March 31, 2026, reflecting a 24.4% YoY increase and 7.2% sequential growth. This indicates improved revenue visibility for the coming quarters.
During the quarter, the company closed over 25 AI-related deals, taking the total to more than 85 deals for FY26. These deals span sectors such as healthcare, financial services, and public sector projects.
Client additions remained steady, with 12 new clients added during Q4FY26, taking the active client base to 326.
Segment and Geographic Performance
The UK business continued to contribute significantly, supported by growth in healthcare and financial services segments. Healthcare revenue in the UK segment grew 95% YoY during FY26.
North America showed early signs of improvement, supported by pipeline expansion and execution-focused initiatives, although management indicated the market remains in transition.
Revenue contribution remained diversified across industries including government, healthcare, retail, manufacturing, and financial services.
Operational Metrics and Workforce
The company reported total employee strength of 4,730 as of March 31, 2026, compared to 4,676 in the previous quarter. Attrition stood at 17.4%, marginally lower than 17.6% in Q3FY26.
Days Sales Outstanding (DSO) improved to 73 days from 84 days sequentially, indicating better working capital efficiency. Cash and cash equivalents increased to Rs 938.5 crore.
Dividend Announcement
The board has recommended a final dividend of Rs 16 per share for FY26, taking the total payout to 480% for the year, compared to 460% in FY25.
Technical Summary
Mastek Limited is trading near ₹1,682.00, down around 3.67% on 20 April 2026, but maintains its position above the 51-day SMA near ₹1,644.43, while the 14-day RSI near 58.00 points. Immediate support is placed in the ₹1,640.00–1,580.00 zone, while resistance is seen near the ₹1,800.00–1,950.00 range.
Source: TradingView
Key Risks
- Revenue growth remains modest despite increased deal activity and pipeline expansion.
- Dependence on UK and US markets exposes performance to regional economic conditions.
- Attrition levels remain elevated, potentially impacting delivery and costs.
- Margin pressure may persist due to wage revisions and operational expenses.
Summary
Mastek (NSE:MASTEK) reported moderate revenue growth in Q4FY26 with stable margins and higher net profit on a yearly basis. Order backlog expansion and AI deal activity indicate pipeline visibility, while regional performance remains mixed.
Operational metrics such as DSO improved, and cash levels increased. However, sequential profit decline and macro uncertainty continue to remain factors to monitor.
FAQs
- What was Mastek’s revenue growth in Q4FY26?
Mastek reported 3.6% year-on-year revenue growth, with total revenue reaching Rs 938.0 crore during the quarter. - How did profitability change during the quarter?
Net profit increased 30.9% YoY but declined sequentially, while EBITDA margin remained stable at 16.1%. - What is the current order backlog position?
The company reported an order backlog of Rs 2,849.2 crore, reflecting 24.4% year-on-year growth.