Mastek Revenue Rises 3.4% to ₹1,018.7 Crore as EBITDA Margin Slips to 14.4%
Key Facts
Mastek said revenue from operations came to ₹1,018.7 crore in the second quarter of fiscal 2027, ended September 30, up 3.4% from the previous quarter and 8.3% year on year. Operating earnings before interest, taxes, depreciation and amortization fell to ₹146.2 crore, down 3.9% quarter on quarter from ₹152.1 crore. The EBITDA margin dropped to 14.4% from 15.4% in the first quarter, a decline of 109 basis points. The results put revenue growth alongside pressure on operating profitability during the quarter. The company clarified in its statement that the published measure was operating EBITDA, correcting the previous draft’s confusion between EBITDA and EBIT.
Net profit was ₹105.7 crore, down a marginal 0.2% from the previous quarter but up 8.4% from the same period a year earlier. Diluted earnings per share were ₹33.9, compared with ₹31.2 in the second quarter of fiscal 2026. Revenue in dollars rose to $107.3 million, up 2.4% quarter on quarter, but remained 0.8% below its level a year earlier. The comparison between the two currencies shows a difference between annual revenue growth in rupees and a slight decline in dollars. Net profit was nearly flat quarter on quarter despite the fall in operating EBITDA and the margin.
Management attributed some of the margin pressure to annual salary increases. The chief financial officer said EBITDA performance came in at 14.4%, affected by those increases, adding: "We continue to drive AI-enabled productivity, focusing on operational efficiency and cost discipline." The company linked employee-related cost growth with efforts to improve productivity and control expenses. Headcount stood at 4,810 employees on September 30, a net reduction of 87 during the quarter. Attrition over the past twelve months was 15.2%, compared with 16.4% in the first quarter of fiscal 2027.
The company reported mixed growth across regions, with revenue from the UK and Europe up 4.1% quarter on quarter in rupee terms, supported by momentum in financial services and the public sector. The chief executive said North American business also grew quarter on quarter and recorded a strong order book. By contrast, he said Middle East business continued to be affected by geopolitical uncertainty. The divergence reflects continued expansion in some markets alongside pressure in another. The company did not provide additional regional figures in its statement or quantify the impact of these conditions on revenue.
On demand, Mastek said it signed 53 new AI deals during the quarter, contributing about 45% of its total order book. The order book due for execution over the next 12 months stood at ₹2,742.8 crore on September 30, up 10.4% year on year in rupee terms and 2.3% in dollar terms. Order-book growth indicates the volume of contracted business for the coming period, while the share of AI deals highlights their weight in the new business disclosed by the company. The chief executive said the company’s long-term outlook remained positive, supported by growth in data and AI business. The statement did not set a numerical target for future revenue or profit.
Cash, cash equivalents and investments stood at ₹930.6 crore at the end of September, compared with ₹945.4 crore on June 30. The company said in its disclosure that net cash, cash equivalents and investments increased by ₹37 crore during the quarter, despite dividends of about ₹50 crore and loan repayments of about ₹55 crore. In market trading, Informist reported that the stock closed down about 4% at ₹1,761.60 on the National Stock Exchange of India after the results were announced on October 23. The company had scheduled its quarterly results call for October 26, 2026, to discuss the results and business outlook with investors and analysts. The call is expected to give management an opportunity to present details on performance and expectations.