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

Mastek management has provided comprehensive insights into the company's future outlook during recent concalls, sharing expectations for the upcoming fiscal years while maintaining their established guidance policy.

Management Guidance Policy

The company continues to follow its standard approach of not providing specific numerical guidance for future financial performance. This conservative stance reflects the management's preference to avoid committing to precise figures in an uncertain business environment.

Order Backlog Foundation for FY27

In a significant development, management has indicated that the 12-month order backlog is expected to be executed in the next 12 months, providing a stronger foundation for FY27 compared to FY26. This order visibility offers enhanced predictability for the company's revenue trajectory and operational planning.

FY27 Growth Expectations

Despite not offering specific numbers, management expressed optimism about the company's medium-term prospects. The leadership team indicated that FY27 is expected to be a growth year for the organization, with anticipated outperformance compared to FY26.

Regional Growth Projections

Management has provided specific regional outlook for FY27, indicating positive momentum across key markets. North America is projected to show positive growth with lead indicators moving in the right direction. The AMEA region is also expected to turn towards growth, though management noted this projection excludes potential geopolitical uncertainties that could impact regional performance.

Resource Optimization Strategy

In a significant strategic update, management has indicated that headcount growth is expected to be slower than revenue growth. This approach is designed to lead to a positive increase in revenue per resource, suggesting improved operational efficiency and productivity gains.

Comparative Performance Outlook

The management's expectation that FY27 will outperform FY26, combined with the strong order backlog foundation, resource optimization strategy and regional growth projections, suggests a positive trajectory for the company's business operations. This outlook indicates confidence in the company's strategic direction and market positioning across North America and AMEA regions, with emphasis on improving profitability metrics through enhanced resource utilization.