Mastek has entered into a memorandum of understanding to sell a commercial building for ₹60 crore, the IT services company announced on April 24, 2026. This strategic asset divestment involves a substantial commercial property located at Mahindra World City SEZ in Chennai.

Transaction Details

The MOU was signed with Caresoft Mobility Private Limited for the sale of a commercial building with an approximate built-up area of 1,57,233 square feet. The property is situated on leased land measuring 15.50 acres at Mahindra World City, SEZ, Chengalpattu, Chennai.

Regulatory Compliance

Mastek has filed the requisite disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that Caresoft Mobility Private Limited does not belong to the promoter, promoter group, or group companies of Mastek, ensuring the transaction remains at arm's length.

Transaction Structure

The aggregate consideration of ₹60 crore will be received in two tranches according to the MOU terms. The transaction is subject to execution of definitive agreements and receipt of necessary approvals from relevant regulatory and statutory authorities, including SEZ compliance requirements.

Strategic Impact

This asset divestment represents a significant step in Mastek's portfolio optimization strategy. The sale of this Chennai-based commercial property will provide additional liquidity while allowing the company to focus resources on its core IT services and digital transformation operations. The transaction does not constitute disposal of an undertaking under Section 180(1)(a) of the Companies Act, 2013.

Mastek delivered a stable performance in Q4FY26 with 3.6% quarter-on-quarter revenue growth, reaching INR938 crores, while maintaining operating EBITDA at 16.1%. The company reported dollar revenue of $103.5 million, up 1.4% sequentially. On a constant currency basis, revenue remained largely flat with marginal sequential growth of 0.3%. Despite salary increase impact of $1.1 million, the company sustained EBITDA margins through forex tailwind of 0.8% and execution of cost efficiencies.

Financial Performance Summary

The company closed FY26 with a 12-month backlog of $300.4 million, representing sequential growth of 1.5% and year-on-year growth of 13.5% in USD terms and 24.4% in INR terms. PAT for the quarter stood at INR106 crores, with a marginal sequential decline of 0.7% due to Labor Code true-up impact.

Order Book and Business Drivers

The order backlog demonstrated robust growth, increasing by 7.2% in INR terms and 1.6% in USD terms sequentially. AI-led deals continue to gain traction, comprising 9% of total deals. The company added more than 27 net new AI-focused customer programs during the quarter, spanning both AI for technology and AI for business-related initiatives.

Geographic performance showed resilience, with U.K. and AMEA regions growing sequentially in Q4, while the U.S. remained largely flat due to project right-shifting. The U.K. business maintained healthy EBITDA of nearly 20%. Healthcare and Life Sciences continues to show positive demand outlook, while Financial Services emerged as a strong performer during the quarter.

Operational Parameters and Cash Position

During the year, the company generated INR542 crores of operating cash, up 35% year-on-year. Cash and cash equivalents as of March 31, 2026, stood at INR938 crores, representing a 51% increase compared to March 2025. The company achieved its lowest Days Sales Outstanding (DSO) in the last 12 quarters at 73 days, supported by strong collections of $125 million during Q4.

Reflecting confidence in the business, Mastek declared a final dividend of INR16 per share, in addition to the interim dividend of INR8 per share declared during Q3. Total headcount stood at 4,730 with an addition of 54 employees during the quarter. Utilization rate improved to 80% in Q4, an increase of 3.3% from Q3.

Guidance and Outlook

Mastek has maintained its margin guidance of 16-16.1% for FY27, balancing operational efficiency improvements against pricing competitiveness and client budget reduction requests. The company expects FY27 to deliver better performance than the previous year, supported by strong order book momentum and positive demand indicators across key verticals including Healthcare, BFSI, and Retail.

The management emphasized that FY26 was a year of fundamental resets across geographies, particularly in North America where the team and focus have been restructured. As the company enters FY27, it anticipates positive growth driven by the execution of the 12-month order backlog and continued momentum in AI-led business transformation services.

Financial Guidance