Mastek Limited announced its audited financial results for Q4FY26 and full year FY26 ended March 31, 2026, demonstrating strong operational performance with revenue growth and recommending an attractive dividend payout to shareholders.

Q4FY26 Financial Performance

The company delivered solid quarterly results with revenue from operations reaching Rs.938.00 crore in Q4FY26, representing growth of 3.6% year-on-year from Rs.905.40 crore in Q4FY25. Net profit for the quarter stood at Rs.106.20 crore, marking significant growth of 30.9% compared to Rs.81.10 crore in the corresponding quarter last year.

Full Year FY26 Results

For the complete financial year FY26, Mastek achieved revenue from operations of Rs.3,698.80 crore, showing growth of 7.0% from Rs.3,455.20 crore in FY25. Annual net profit reached Rs.404.00 crore, up 7.5% from Rs.375.90 crore in the previous year. Operating EBITDA margins remained stable at 15.8%.

AI Strategy and Order Backlog Growth

Mastek's "Lead with AI" strategy delivered measurable outcomes with over 25 AI-assisted deals closed during Q4FY26, bringing the full-year total to 85+ deals. The 12-month order backlog grew significantly by 24.4% year-on-year in rupee terms to Rs.2,849.20 crore as of March 31, 2026, compared to Rs.2,290.90 crore in Q4FY25.

Dividend Recommendation

The Board of Directors recommended a final dividend of Rs.16.00 per share, representing 320% on the face value of Rs.5.00 per equity share for FY26. Combined with the interim dividend of Rs.8.00 per share already paid, the total dividend for FY26 amounts to Rs.24.00 per share (480%), compared to Rs.23.00 per share (460%) in the previous year.

Management Commentary

CEO Umang Nahata highlighted the company's improved revenue visibility supported by strong UK business growth of 21.8% in rupee terms for FY26, driven by healthcare sector growth of 95% year-on-year. He emphasized that the "Lead with AI" strategy is translating into measurable outcomes with revenue per employee improving by 12% and EBITDA margins sustained at 16.1%.

CFO Deepak Kedia emphasized the company's resilient performance with operating EBITDA margins of 16.1% and improved working capital efficiency with DSO at 73 days. The company added Rs.139.70 crore to cash and cash equivalents during the quarter, resulting in a closing balance of Rs.938.50 crore.

Mastek reported mixed fourth quarter consolidated results with net profit declining to ₹1.06 billion from ₹1.08 billion in the previous quarter, while revenue showed growth reaching ₹9.3 billion compared to ₹9.1 billion quarter-on-quarter. The technology services company also reported EBIT of ₹1.33 billion with margin compression during the quarter.

Quarterly Financial Performance

The company's consolidated financial metrics for the fourth quarter presented a mixed picture with revenue growth offset by profit decline.

Revenue Growth Amid Profit Pressure

Mastek achieved revenue growth in the fourth quarter with consolidated revenue increasing to ₹9.3 billion from ₹9.1 billion in the preceding quarter. However, this top-line growth did not translate into bottom-line improvement as consolidated net profit decreased to ₹1.06 billion from ₹1.08 billion quarter-on-quarter.

Operational Metrics Analysis

The company's EBIT margin contracted to 14.1% in the fourth quarter from 14.8% in the preceding quarter, representing a compression of 0.7 percentage points. The sequential decline in both EBIT and net profit margins indicates operational challenges despite the revenue expansion during the period.

The divergence between revenue growth and profit decline suggests increased operational costs or margin pressure in the company's service delivery during the fourth quarter.