Mastek Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Mastek Ltd filed with BSE on 24 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Mastek reported Q4 FY'26 revenue of $103.5 million, up 1.4% sequentially, with EBITDA margin held at 16.1% despite a wage hike impact, aided by forex tailwinds and cost efficiencies. Full year FY'26 revenue was $421.2 million, up 3.1% year-on-year, with EBITDA margin at 15.8%, roughly flat versus the prior year. Management described the year as one of resets across North America, U.K. and AMEA geographies, highlighted a 12-month order backlog of $300.4 million up 13.5% year-on-year, and recognized an exceptional Labor Code true-up impact of INR23.7 crores during the quarter.
Numbers mentioned
Revenue: $103.5 million (Q4 FY26)
p. 5
“In Q4, we reported revenue of $103.5 million, sequentially up by 1.4% and an operating EBITDA of 16.1%.”
Deepak Kedia, page 5 of the filed PDF · View the filing
EBITDA margin: 16.1% (Q4 FY26)
p. 5
“In Q4, we reported revenue of $103.5 million, sequentially up by 1.4% and an operating EBITDA of 16.1%.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Revenue (INR): INR938 crores (Q4 FY26)
p. 5
“In rupee terms, we reported revenue of INR938 crores, a sequential growth of 3.6% and a Y-oY growth of 3.6%.”
Deepak Kedia, page 5 of the filed PDF · View the filing
PAT: INR106 crores (Q4 FY26)
p. 5
“We reported PAT of INR106 crores, which is 11%.”
Deepak Kedia, page 5 of the filed PDF · View the filing
12-month order backlog: $300.4 million (FY26)
p. 5
“We closed the year with 12-month backlog of $300.4 million, a sequential growth of 1.5% and a Y-o-Y growth of 13.5% in USD and 24.4% in INR terms.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Full year revenue: $421.2 million (FY26)
p. 5
“For full year, we reported dollar revenue of $421.2 million, up 3.1% Y-on-Y.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Full year EBITDA margin: 15.8% (FY26)
p. 5
“We reported an EBITDA of 15.8% for the full year, which is same as previous year despite pricing pressures and macroeconomic situations in our key geographies.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Full year revenue (INR): INR3,699 crores (FY26)
p. 5
“In rupee terms, we reported revenue of INR3,699 crores, a Y-o-Y growth of 7%.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Full year PAT: INR404 crores (FY26)
p. 5
“We reported PAT of INR404 crores, a Y-o-Y growth of 7.5%.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Basic EPS: INR130.45 (FY26)
p. 5
“We reported a basic EPS of INR130.45, which was up 7.1% compared to last year and diluted EPS of INR129.5, up 7.3% compared to last year.”
Deepak Kedia, page 5 of the filed PDF · View the filing
Labor Code exceptional impact: INR23.7 crores (Q4 FY26)
p. 6
“During the quarter, we recognized an exceptional and incremental impact of INR23.7 crores, which includes gratuity of INR16 crores and leave encashment of INR7.7 crores.”
Deepak Kedia, page 6 of the filed PDF · View the filing
Operating cash generated: INR542 crores (FY26)
p. 6
“During the year, we generated INR542 crores of operating cash, which is up 35% Y-o-Y.”
Deepak Kedia, page 6 of the filed PDF · View the filing
Cash and cash equivalents: INR938 crores (as of March 2026)
p. 6
“Our cash and cash equivalents as of the end of March '26 was INR938 crores, up 51% compared to March '25 ending.”
Deepak Kedia, page 6 of the filed PDF · View the filing
DSO: 73 days (Q4 FY26)
p. 6
“During Q4 of '26, we had a very strong collection quarter from our customers, wherein we collected $125 million, which helped us reduce our DSO to 73.”
Deepak Kedia, page 6 of the filed PDF · View the filing
Final dividend: INR16 per share (FY26)
p. 6
“Reflecting continued confidence in the business, we are pleased to declare a final dividend of INR16 per share.”
Deepak Kedia, page 6 of the filed PDF · View the filing
Closing headcount: 4,730 (Q4 FY26)
p. 6
“Total closing headcount was 4,730, an addition of 54 during the quarter.”
Deepak Kedia, page 6 of the filed PDF · View the filing
Utilization rate: 80% (Q4 FY26)
p. 6
“Utilization rate improved during Q4 at 80%, which was an improvement of 3.3% from Q3 and 1.7% from Q2.”
Deepak Kedia, page 6 of the filed PDF · View the filing
U.K. & Europe revenue growth: 11% in pound terms, 21.8% in INR terms (FY26)
p. 4
“Our U.K. & Europe business grew around 11% in pound terms and 21.8% in INR terms.”
Umang Nahata, page 4 of the filed PDF · View the filing
AI-focused new customer projects: more than 27 programs (Q4 FY26)
p. 4
“Our net new AI-focused customer projects or programs that we've added in the quarter were more than 27 programs.”
Umang Nahata, page 4 of the filed PDF · View the filing
Revenue per resource increase: more than 12% (FY26)
p. 5
“On an overall basis, we delivered more than 12% increase in our revenue per resource in the year, also delivering lots of efficiency and gain backs to our clients and customers.”
Umang Nahata, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 16% -16.1% · FY27
stated firmly by Umang Nahata
p. 7
“As we have stated earlier, Ankur, we believe maintaining margin percentage for the coming period at 16% -16.1% is where we see the margin performances.”
Umang Nahata, page 7 of the filed PDF · View the filing
Revenue growth — FY27
stated as an aspiration by Umang Nahata
p. 7
“So Ankur, usually, we don't give guidance on future numbers. Having said that, we believe it will be a better performance than the previous year.”
Umang Nahata, page 7 of the filed PDF · View the filing
Effective tax rate — 24.5% to 24.7% · future quarters
stated firmly by Deepak Kedia
p. 8
“Going forward, our average effective tax rate would be 24.5% to 24.7%. We expect the same to continue in the future quarters as well.”
Deepak Kedia, page 8 of the filed PDF · View the filing
North America revenue growth — FY27
stated as an aspiration by Umang Nahata
p. 14
“And we are quite positive that FY '27 will be a good growth year for North America.”
Umang Nahata, page 14 of the filed PDF · View the filing
AMEA revenue growth — FY27
stated conditionally by Umang Nahata
p. 14
“The geopolitical uncertainties is definitely a factor. But if you eliminate those uncertainties out or if you make an assumption without the uncertainties, we are positive that AMEA is also turning around towards growth in FY '27.”
Umang Nahata, page 14 of the filed PDF · View the filing
FCA deal ramp-up — fully ramped up · end of Q1 FY27
stated firmly by Umang Nahata
p. 18
“The FCA deal has already started ramping up. We've now had more than 60 on-site resources on the account, and we'll continue to see ramp-up in Q1 on that deal. So we think we'll be fully ramped up by the end of Q1 on FCA.”
Umang Nahata, page 18 of the filed PDF · View the filing
ATLAS and Biometric deal ramp-ups — Q1 to Q2 FY27
stated conditionally by Umang Nahata
p. 18
“So as we speak, under the contract, we are discussing with the clients the new SOWs for which the ramp-ups will have to happen. So we expect those to happen sometime between Q1 and Q2.”
Umang Nahata, page 18 of the filed PDF · View the filing
FY27 revenue growth relative to FY26 — FY27
stated as an aspiration by Umang Nahata
p. 11
“put the two together, we believe that FY27 will be a positive growth year, should grow faster than FY26.”
Umang Nahata, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said momentum is positive but declined to quantify growth, citing macro uncertainty and AI-led pricing pressure.
Answered by Umang Nahata
Asked by Ankur Kumar: Can revenue growth accelerate in the first half of next year given strong order book growth?
p. 7
“The revenue ramp-up on the order backlog has already started and will start reflecting in our revenue soon.”
Umang Nahata, page 7 of the filed PDF · View the filing
Deepak explained the lower Q4 tax rate was due to provision reversals from completed assessments, with the effective rate expected to normalize.
Answered by Deepak Kedia
Asked by Sushovon: What is the steady state tax rate expected to be?
p. 8
“Going forward, our average effective tax rate would be 24.5% to 24.7%.”
Deepak Kedia, page 8 of the filed PDF · View the filing
Management confirmed about $0.5 million of previously postponed WAR revenue was recognized in the quarter.
Answered by Umang Nahata
Asked by Sushovon: Was there a one-off AMEA WAR revenue recognized this quarter?
p. 8
“So it was around $0.5 million worth of WAR revenue that we were able to recognize that we had postponed in Q2, we were able to recognize that in this quarter.”
Umang Nahata, page 8 of the filed PDF · View the filing
Management attributed the decline to revenue stabilization pressure and the full impact of wage hikes given during the quarter.
Answered by Umang Nahata
Asked by Vinesh Vala: Why are U.S. and Middle East margins down year-on-year and sequentially?
p. 8
“So on North America, it's mostly the pressure of the revenue still stabilizing as well as the impact of the wage hike that we've given in the quarter.”
Umang Nahata, page 8 of the filed PDF · View the filing
Management confirmed the wage hike had its full impact in the current quarter.
Answered by Umang Nahata
Asked by Vinesh Vala: Is the wage hike fully reflected in this quarter or will some impact carry into Q1?
p. 9
“No, it has the full impact.”
Umang Nahata, page 9 of the filed PDF · View the filing
Management said M&A focus is shifting toward vertical/domain capabilities rather than broad technology skills, with smaller AI investments and partnerships.
Answered by Umang Nahata
Asked by Varun Kulkarni: Would acquisitions be a strategy to enhance the AI vertical given rising cash?
p. 9
“Our M&A thesis as we look at it now is very tightly aligned to our vertical and our vision strategy, which is trying to move to AI-led vertical growth in these businesses.”
Umang Nahata, page 9 of the filed PDF · View the filing
Management said renewals are highly price competitive, with discounts historically around 10-15% but potentially higher depending on the customer.
Answered by Umang Nahata
Asked by Amit Chandra: What renewal discounts and pricing pressure are being seen on existing U.K. government contracts?
p. 14
“Like we had mentioned in our earlier quarters, we had renewed some of our contracts with anywhere around 10% to 15% discount.”
Umang Nahata, page 14 of the filed PDF · View the filing
Management said the business is shifting from traditional SaaS deployments to AI-enabled transformation work, which they expect to continue growing despite core technical services facing reduction.
Answered by Umang Nahata
Asked by Sushovon: Could Oracle's reported layoffs or a potential sale of Oracle Health affect Mastek's Oracle-related business?
p. 17
“So if you put the two together, the business is seeing a systematic shift from traditional SaaS deployments to more AI-enabled business transformation.”
Umang Nahata, page 17 of the filed PDF · View the filing
Risks flagged
Unstable macro environment and AI-led pricing pressure affecting revenue growth
p. 7
“Having said that, as you also understand that we are dealing with a very unstable macro environment as well as a lot of AI-led pricing pressure.”
Umang Nahata, page 7 of the filed PDF · View the filing
Geopolitical turbulence in the Middle East affecting AMEA business
p. 4
“Our Middle East business, while is facing some short-term headwinds because of the significant geopolitical turbulence in the region, we maintain a stable performance forecast”
Umang Nahata, page 4 of the filed PDF · View the filing
Slowdown in discretionary spend decision-making in AMEA
p. 8
“However, the decision-making on the net new orders or discretionary spend as expected has slowed down.”
Umang Nahata, page 8 of the filed PDF · View the filing
Timing gap between completed and new healthcare projects affecting revenue
p. 3
“although the current performance of this quarter has seen a quarter-on-quarter dip, which is primarily a timing gap between current projects getting executed and new projects getting started.”
Umang Nahata, page 3 of the filed PDF · View the filing
Severe pricing competitiveness in the market
p. 4
“Our AI-focused execution as well as our operational excellence has also ensured that despite the severe pricing competitiveness in the market, we're able to maintain a stable profit margin, and we continue to maintain that.”
Umang Nahata, page 4 of the filed PDF · View the filing
Increased volatility and uncertainty in the market affecting book-and-ship growth
p. 10
“A lot of macro as well as AI-led changes are constantly shaping the business. So our endeavour is to make sure that we deliver a positive book and ship growth also, but we'll look that with a degree of caution as we enter into a market which has a little more uncertainty than before.”
Umang Nahata, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.