Mastek Reports Q1 FY27 Results Driven by AI Transformation and Strong Order Book Growth
Mastek Limited, a global provider of enterprise AI, digital, and cloud services, announced its financial results for the First Quarter of Fiscal Year 2027, which ended on June 30, 2026. The company reported revenue growth supported by accelerating demand for AI-driven transformation projects across various sectors internationally.The Q1 FY27 performance showcased Mastek’s strategic focus on incorporating AI into client operations and delivering complex digital modernization programs globally.
Financial Performance Highlights
Mastek reported Total Income of Rs 997.3 crore in the quarter. Revenue from Operations stood at Rs 985.3 crore, marking a sequential growth of 5.0% compared to the previous quarter (Q4FY26), and achieving a Year-on-Year (YoY) revenue growth of 7.7% compared to Q1FY26.The company maintained an Operating EBITDA of Rs 151.4 crore, registering a 10.2% increase YoY. The operating margin for the quarter was reported at 15.4%. Net Profit stood at Rs 105.9 crore, representing a 15.0% growth on a YoY basis.
Key financial data points for Q1FY27 compared across reporting periods are summarized below:
| Figures in ₹ Crore | Metric | Q1FY27 | Q4FY26 | QoQ Growth | Q1FY26 | Y-o-Y Growth |
|---|---|---|---|---|---|---|
| Revenue from Operations | 985.3 | 938.0 | 5.0% | 914.7 | 7.7% | |
| Total Income | 997.3 | 961.9 | 3.7% | 925.3 | 7.8% | |
| Operating EBITDA | 151.4 | 150.7 | 0.4% | 137.3 | 10.2% | |
| Net Profit | 105.9 | 106.2 | (0.3)% | 92.1 | 15.0% | |
| Operating EBITDA Margin (%) | 15.4% | 16.1% | (71)bps | 15.0% | 35bps | |
| Net Profit Margin (%) | 10.6% | 11.0% | (42)bps | 9.9% | 67bps |
Operational Status and Strategy Update
Umang Nahata, Chief Executive Officer of Mastek, highlighted that the company is actively transforming into an AI-driven entity across select verticals. He noted that the 'Lead with AI' strategy is contributing significantly to business development, with approximately 45% of new order bookings originating from AI deals. A notable achievement cited was winning a $25 million AI-led Salesforce deal in North America (NA).Deepak Kedia, Chief Financial Officer, commented on the company’s resilience during the quarter, noting a 1.8% constant currency revenue growth. He attributed the slight sequential decline in EBITDA to delayed collections within the Middle East region but affirmed continued focus on disciplined cost management and operational efficiency. The CFO also reported that the net cash and investment position improved by approximately Rs 200 crore over the last two quarters, bringing the total cash and investment position to Rs 945 crore at the end of the quarter.
Operational Metrics
The company recorded a robust 12 months order backlog amounting to Rs 2,935.2 crore ($310.1 million). This figure represents a 25.0% growth in rupee terms and 13.3% growth in dollar terms on a year-on-year basis.As of June 30, 2026, Mastek employed 4,897 staff members, adding 167 employees during the quarter. The company reported that last twelve months attrition has decreased by 1%, standing at 16.4%. Total cash, cash equivalents, and fair value of Mutual Funds reached Rs 945.4 crore.
Key Strategic Achievements
Mastek secured numerous high-profile engagements across multiple geographies, leveraging its AI capabilities to drive large-scale corporate transformations:- UK Government: Secured a strategic engagement with one of England's largest councils to digitally transform operations—covering Finance, Procurement, Budgeting, HR, and Payroll—using the ADOPT AI on Oracle Cloud platform.
- US Federal Agency: Won a landmark engagement to overhaul mission-critical service delivery and case management using a scalable Salesforce Agentforce platform.
- KSA Healthcare: Secured a strategic five-year engagement with one of Saudi Arabia's fastest-growing listed hospital groups to power its Vision 2030 healthcare transformation, connecting enterprise, clinical, and revenue systems in real time through Mastek AI Healthcare.
- US Manufacturing: Won a multi-million dollar, fixed-price transformation contract for a leading provider of automatic taping and finishing tools, replacing four disconnected legacy systems with one intelligent enterprise platform, driven by Mastek's AI approach.
- UK Education Tech: Secured a strategic modernization engagement with a leading UK education technology group to re-engineer its end-of-life legacy platform into a cloud-native architecture using Mastek AI.
The company also received recognition from industry bodies, including being featured as a 'Challenger' in Avasant Higher and Manufacturing Digital Services 2026 RadarView, and receiving recognition in the Gartner Market Guide for Oracle Cloud Infrastructure Professional and Managed Services.
MASTEK Stock Price Movement
Closing modestly strong on Tuesday, Mastek Limited shares gained 0.16% and settled at ₹1746.60. The stock traded within a narrow band of ₹1739 to ₹1779.90 and saw a total traded volume of 190,220 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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