Mastek Shares Gain as AI Strategy Drives 29% Rise in Q1FY26 Profit

Mumbai, 21 July 2025: Mastek Ltd (NSE: MASTEK) witnessed a 5.07% surge in its share price in early trading today, reaching ₹2,620.00. The rally follows the company’s announcement of strong Q1 FY26 financial results, driven by growth in its AI-led initiatives and expansion in the UK and European markets. Investor confidence remains buoyed by Mastek’s strategic positioning in emerging digital technologies.

As of 9:58 AM IST on 21 July 2025, Mastek Ltd shares were trading at ₹2,719.00, marking a sharp gain of 9.04% or ₹225.50. The stock opened at ₹2,547.70 and touched an intraday high of ₹2,725.00 and a low of ₹2,544.00. The company’s market capitalisation stood at ₹8,410 crore, with a P/E ratio of 22.54. The 52-week high remains ₹3,375.00.

The market responded positively to Mastek’s robust performance for the quarter ended June 30, 2025. The company posted a net profit of ₹92.1 crore, up 28.7% year-on-year, and a 12.5% growth in revenue from operations. Strategic expansion across key sectors and geographies has helped maintain momentum in a competitive environment.

Stock Snapshot (As of 09:18 IST, July 21):

• Last Traded Price: ₹2,620.00
• % Change: +5.07%
• Previous Close: ₹2,493.50
• Intraday High: ₹2,629.50
• Intraday Low: ₹2,544.00
• VWAP: ₹2,602.31
• Market Cap: ₹8,108.81 Cr
• 52-Week High: ₹3,375.00 (Dec 4, 2024)
• 52-Week Low: ₹1,887.00 (Apr 7, 2025)

Profit Soars as European Markets and AI Deals Fuel Growth

Mastek’s consolidated performance reflected stable quarter-on-quarter progress and strong year-on-year growth, with particular strength in healthcare, government, and AI-driven digital services.

Q1FY26 Key Financial Highlights

• Revenue from Operations: ₹914.7 Cr (↑ 12.5% YoY)
• Total Income: ₹925.3 Cr (↑ 13.2% YoY)
• Operating EBITDA: ₹137.3 Cr (↑ 10.8% YoY)
• Net Profit (PAT): ₹92.1 Cr (↑ 28.7% YoY)
• EBITDA Margin: 15.0% (↓ 23 bps YoY)
• Diluted EPS: ₹29.5 (↑ 28.8% YoY)

The 12-month order backlog grew 8.3% YoY to ₹2,347.9 crore, bolstered by sustained traction in AI-driven contracts and strong public sector demand.

AI Strategy Accelerates with New Deals and Platform Expansion

Mastek’s aggressive investment in artificial intelligence has begun delivering tangible outcomes. The company secured over 10 new AI deals during the quarter and scaled its proprietary ADOPT.AI platform to cover real-world enterprise use cases.

• Signed a strategic partnership with Open Ana to expand AI platform capabilities
• Launched 80+ AI Agent assets
• Rolled out 100+ real-world AI use cases through ADOPT.AI

According to CEO Umang Nahata, “Our AI proposition is building tremendous traction… While the external environment remains dynamic, our execution focus and deep client relationships position us well for sustainable and profitable growth.”

Client Base Narrows but Margins Hold Steady Amid Restructuring

While profitability improved, Mastek reported a decline in the number of active clients and total employees – a sign of strategic consolidation and operational restructuring aimed at efficiency and value creation.

Operational Metrics:

• Active Clients: 323 (↓ from 391 YoY)
• Total Employees: 4,824 (↓ from 5,546 YoY)
• LTM Attrition: 19.5% (↓ from 20.9% YoY)
• Cash & Equivalents: ₹549.0 Cr
• ROE (LTM): 16.7%
• ROCE (LTM): 17.0%

UK and Government Sectors Drive Revenue Share

Geographically, the UK and Europe continued to lead, contributing 63.8% of total revenue. Sector-wise, Government & Education formed the largest chunk of revenue, followed by Health & Life Sciences-demonstrating the company’s strength in high-impact domains.

Segmental & Geographic Performance:

• UK & Europe Revenue Contribution: 63.8%
• Sector-Wise Contribution:
  • Government & Education: 39.2%
  • Health & Life Sciences: 25.0%
• Service Line Contribution:
  • Digital & Application Engineering: 49.2%

Company Overview: Digital Transformation Expertise Across Global Markets

Founded in 1982 and publicly listed since 1995, Mastek Limited (NSE: MASTEK, BSE: 523704) is a global digital engineering and enterprise cloud services company with more than 400 clients in over 40 countries. It maintains strategic partnerships with Oracle, Salesforce, AWS, and Microsoft, serving industries such as healthcare, education, and public sector governance.

REF: https://nsearchives.nseindia.com/corporate/MASTEK12_18072025210157_InvestorPresentation18072025signed.pdf

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