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Earnings Call Transcript

Mastek Earnings Call Transcript: Key Takeaways

Mastek delivered steady Q1 FY27 growth led by UK and North America, though Middle East geopolitical crises caused volatility and margin pressure. Management is aggressively pivoting toward an AI-first transformation strategy.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growth5% QoQ INR growth; 1.8% constant currency growth.
MarginsEBITDA at 15.4%; pressured by Middle East and ESOP costs.
Order book12-month backlog at $310M, up 25% YoY in INR.
Demand visibilityPositive AI demand; 40+ new AI-led deals closed this quarter.
Management confidenceConfident on UK/US; cautious but observant regarding Middle East volatility.

Growth

Revenue grew 5% QoQ in INR terms and 1.8% in constant currency; 12-month backlog up 25% YoY.

Outlook

Expects FY27 performance to exceed FY26; North America to hit $30M quarterly run rate for margin recovery.

Risks

Middle East instability impacting execution; high bench costs; ESOP and wage hike impacts on near-term margins.

Last quarter's promises, checked

Delivered

  • Guided FY27 growth > FY26 → delivered 5% QoQ INR growth (= BEAT)
  • Guided stable margin 16-16.1% → delivered 16.1% in Q4 (= BEAT)
  • Guided North America turnaround → delivered 2nd quarter positive order growth (= BEAT)

Partly delivered

  • Guided AI-led deal scaling → delivered 27 programs but average size remains small at $1M (= PARTIAL)

Missed

  • Guided Healthcare growth recovery → delivered QoQ dip due to timing (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: MASTEK. Summary written with AI assistance from the document.

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Mastek Ltd: key numbers

Share price
₹1,582.80
Market cap
₹4,908 Cr
Revenue (annual)
₹3,699 Cr
Net profit (annual)
₹404.0 Cr
P/E (TTM)
11.8×Sector 22.1×
Promoter holding
35.76%+0.00% QoQ
FII holding
7.45%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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