Mastek Limited reported a 4.8% constant currency decline in revenue for Q3 FY26, attributed to seasonal factors and project delays. Despite this, the company improved its EBITDA margin to 16.1%. The 12-month order backlog grew by 18.4% year-over-year. Mastek also secured a new $20 million financial services deal and declared an interim dividend of ₹8 per share.
Financial Performance Overview
Mastek Limited announced its financial results for Q3 FY26, reporting an operating revenue of ₹905.7 crores, a year-over-year increase of 4.2%. However, the revenue decreased by 3.7% sequentially, primarily due to seasonal headwinds, including higher furloughs in the U.K. and among some Public Sector clients. Some transformation programs, especially Oracle programs, also experienced delays in new project starts.
Profitability and Efficiency
Despite revenue challenges, Mastek improved its EBITDA margin by 60 bps to 16.1%. This improvement includes an impact of ₹6.4 crores due to labor code changes, offset by operational efficiencies and forex tailwinds. 43 bps reflect the company’s resilience towards AI-led operational efficiency, while 17 bps stemmed from forex benefits. Net profit also improved to 11.7%, showcasing an improvement of 149 bps quarter-on-quarter.
Order Backlog and New Business
The company’s 12-month order backlog stands at $296 million, reflecting a growth of 5.7% quarter-on-quarter and 18.4% year-over-year. Mastek added 17 new customers in Q3, contributing to the healthy backlog position. Mastek also secured a new large account in the financial services sector valued at approximately $20 million.
Strategic Developments
Mastek has been recognized as a leading performer in mid-market digital engineering by analyst firms, backed by sustained quality and productivity improvements for clients, offering between 15% and 80% gains through AI-led engineering. The company is also recognized by Oracle as a top-20 partner globally for leading AI initiatives, receiving three key recognitions at the AI World event. Mastek is now focusing on Healthcare and Life Sciences as key growth areas, investing in both people and assets.
Balance Sheet and Dividends
Mastek continues to maintain a strong balance sheet with a net cash position of ₹346 crores, compared to ₹135 crores in the previous quarter. The company generated operating cash of nearly ₹210 crores in Q3. Based on robust cash collection, the board declared an interim dividend of ₹8 per share (160%).
Operational Metrics
The company’s closing headcount was 4,676, compared to 4,745 in the last quarter. Utilization rate decreased to 76.7%, including trainees, compared to 81.8% in the prior quarter, reflecting higher leaves due to festivals, holidays, and client furloughs.
Looking Ahead
Mastek anticipates a strong global demand, particularly in Healthcare and Life Sciences across the U.K., U.S., and AMEA regions. The company expects sustained growth in this vertical. The firm also indicated U.S. market improvements are expected in coming quarters, after addressing core structural issues, and anticipated FY27 to be a stronger year than FY26.
Source: BSE
