Mastek Limited reported a healthy Q2FY27 performance with revenue growing 2.4% QoQ to $107.3 million and EBITDA at 14.4%. The company highlighted strong momentum in its AI transformation initiatives, including partnerships and new offerings like ‘Service-as-a-software’. Order backlog saw a 2.3% YoY growth in USD terms.
Mastek Reports Strong Q2FY27 Performance Driven by AI Initiatives
Mastek Limited announced its financial results for the second quarter of FY27, demonstrating a robust performance driven by strategic shifts towards AI transformation. The company reported a sequential revenue growth of 2.4% in constant currency terms, reaching $107.3 million for the quarter. The EBITDA performance stood at 14.4%, experiencing a slight dip of 100 basis points from the previous quarter, attributed to salary hikes and ESOP expenses.
Key Financial Highlights
In rupee terms, Mastek crossed the ₹1,000 crore mark for the first time, reporting revenue of ₹1,018.7 crore, a sequential growth of 3.4% and an 8.3% year-on-year increase. Profit After Tax (PAT) was reported at ₹105.7 crore, representing 10.3% of total income. The 12-month order backlog grew by 2.3% YoY in USD and 10.4% in INR terms, despite a sequential decline attributed to deferred project starts and slower consumption.
Strategic Focus on AI Transformation
A significant portion of Mastek’s strategy revolves around transforming into an AI-native organization. The company has launched two key offerings: a strategic partnership with Innovaccer to drive AI transformation in the Healthcare & Life Sciences domain, and ‘Service-as-a-software,’ an integrated offering focused on process transformation and SaaS replacement. Furthermore, Mastek is strengthening its ‘AI Foundation’ pillar, including cybersecurity services. Over 40% of Mastek’s deals in the quarter were AI-related, signaling a strong market adoption of its AI solutions.
Geographical Performance Insights
Geographically, the UK continues to be a robust market, with a 4.1% revenue growth in Q2 FY27, driven by strong momentum in Financial Services. Public sector business remains stable, while Healthcare & Life Sciences experienced some slowdown due to project start shifts, with expectations of improvement in H2. North America showed strong deal momentum, with order backlog growing over 50% year-on-year, fueled by Al native transformation deals. The APAC and Middle East region faces continued market uncertainty, though Q2 saw a decent revenue bounce back from some existing contracts.
Deal Pipeline and Future Outlook
Mastek highlighted several significant AI-led deals across various sectors, including Healthcare & Life Sciences, financial services, and public sector cybersecurity. The company is seeing deal sizes ranging from $0.5 million to $5 million for Al transformation, with potential for evolution into larger, repeatable business. Looking ahead, Mastek remains optimistic about its H2 performance and anticipates FY27 to be better than FY26, despite some geopolitical uncertainties. The company is focused on leveraging its AI capabilities to drive future growth and market leadership.
Source: BSE
