Order Backlog (12-month)
$300.4M
+13.5% YoY
12-month order backlog in USD terms, providing revenue visibility.
MASTEK
Other
2026-04-??
Mastek Ltd — Q4 FY26
Mastek reported a stable Q4 FY26 with revenue of ₹938 crore (+3.6% QoQ) and EBITDA margin of 16.1%, despite wage hike impact and pricing pressure.
✓ Verified against BSE filing
2-Min Summary
Mastek reported a stable Q4 FY26 with revenue of ₹938 crore (+3.6% QoQ) and EBITDA margin of 16.1%, despite wage hike impact and pricing pressure. Order backlog grew 7.2% QoQ in INR terms, providing a stronger foundation for FY27. Healthcare saw a timing dip, but financial services emerged as the star performer. Management expects FY27 to be a growth year, faster than FY26, but remains cautious due to macro volatility and AI-driven pricing headwinds. AI deals now constitute 9% of order book, shifting from tech efficiency to business outcomes. Key risk: renewal pricing discounts of 10-15% or higher could pressure revenue growth.
Key Numbers
Utilization Rate
80%
+3.3pp QoQ
Improved utilization from 76.7% in Q3, reflecting operational efficiency.
DSO (Days Sales Outstanding)
73 days
-12 days QoQ
Lowest DSO in 12 quarters, driven by strong collections of $125M.
AI Deal Share of Order Book
9%
+6pp QoQ
AI-focused deals increased from 3% to 9% of order book in two quarters.
Management Guidance
FY27 revenue growth to be faster than FY26
Management expects FY27 to be a positive growth year, faster than FY26's 3.1% USD revenue growth, driven by stronger order backlog.
revenueEBITDA margin to remain stable at ~16%
Management guided for stable EBITDA margin around 16-16.1% in FY27, balancing cost efficiencies, pricing pressure, and AI investments.
marginsNorth America to return to growth in FY27
Positive order book growth for two consecutive quarters; management expects North America revenue growth in FY27.
growthEffective tax rate of 24.5-24.7%
CFO guided for effective tax rate in the range of 24.5% to 24.7% going forward.
otherKey Risks
Renewal pricing pressure from AI efficiency
Management acknowledged 10-15% discount on renewals, which could go higher, pressuring revenue growth.
high · management_commentaryGeopolitical headwinds in Middle East
AMIA business faces short-term headwinds due to geopolitical turbulence, slowing new decision-making.
medium · management_commentaryTiming gap in healthcare project ramp-up
Healthcare vertical saw a QoQ dip due to timing gap between project completions and new project starts, delaying revenue recovery.
medium · analyst_questionAI-driven business model transition uncertainty
Shift from T&M to outcome-based pricing may compress margins and revenue predictability; timing of large-scale AI adoption is uncertain.
medium · analyst_questionNotable Quotes
Our endeavor 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.
The T&M model will give way to more outcome focused model.
We believe FY27 will be a positive growth year, should grow faster than FY26.