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Mastek in Q1FY27 reported revenue of US 105 mn dollar

ICICIdirect Research 22 Jul 2026 DISCLAIMER

News: Mastek in Q1FY27 reported revenue of US$104.8 mn, up 1.2% QoQ / down 2.4% YoY (up 5% QoQ/7.7% YoY in INR terms and up 1.8% QoQ CC / down 3% YoY CC). On a QoQ basis, growth amongst verticals was led by Government (43% of the mix), Financial Services (15% of the mix), Manufacturing (12.5% of the mix) and Retail (10% of the mix) which grew by 12.1%, 11.7%, 5.9 and 2.1% respectively. Whereas, Health & Life Sciences (19% of the mix) declined by 10.7%. Geography wise, on a QoQ basis, growth was led by UK (67.3% of the mix) and US (21.7% of the mix) which grew by 6.5% and 6.2%. Whereas, Middle East (11% of the mix) declined by 5.2%. EBITDA margin for the quarter stood at 15.3%, down ~71 bps QoQ, impacted by delayed collections in the Middle East. The PAT for the quarter stood at ₹105.9 crore, down 0.3% QoQ / up 15% YoY. The company’s 12M order backlog grew by 3% QoQ / 25% YoY to ₹2,935.2 crore. AI traction remained robust with 43 AI deals during the quarter and ~45% of the new order book coming from AI deals. Moreover, it added 13 new clients in the quarter.

View: Mastek's operating performance remains underwhelming despite another quarter of healthy order bookings. While the 12-month order backlog grew 25% YoY, similar to the previous quarter, this has yet to translate into meaningful revenue acceleration, with revenue still declining 3% YoY in constant currency. Margin performance also continues to disappoint, with EBITDA margin declining to 15.4%, reflecting limited operating leverage. Although AI deal momentum remains healthy and the order pipeline is robust, sustained execution and faster conversion of wins into revenue are essential before a meaningful recovery can be expected. Near-term growth visibility therefore remains constrained amid Middle East weakness and a sluggish demand environment. We await management commentary for further insights.

Impact: Negative

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