Mastek Limited (MASTEK)
Micro CapIT stocks · Micro cap · NSE
Mastek is a global provider of enterprise AI, digital, and cloud services, enabling clients to achieve measurable and sustainable returns on technology investments. It operates in 40+ countries with ~5,000 employees, focusing on a "Lead with AI" strategy across Public Sector, Healthcare, Retail, Manufacturing, Higher Education, and Financial Services.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 47/100margin compression · Rev +8% YoY · PAT +15% YoY · +5% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹985 Cr | +7.7% | +5.0% |
| EBITDA | ₹151 Cr | +10.2% | +0.0% |
| Operating margin | 15.0% | +0 bps | -100 bps |
| PAT | ₹106 Cr | +15.2% | +0.0% |
| PAT margin | 10.8% | +71 bps | -54 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Mastek reports Q1FY27 revenue up 5.0% QoQ (1.8% CC) and 7.7% YoY, with EBITDA margin at 15.4%. Order backlog grew 25% YoY in rupee terms, driven by 40+ new AI deals.
Mastek's "Lead with AI" strategy is gaining traction, evidenced by 40+ new AI deals and ~45% of new order book from AI. Strong sequential revenue growth in UK & Europe and NA is positive. However, the sequential EBITDA margin decline and geopolitical impact on Middle East business warrant close monitoring. The improved cash position is a positive.
Revenue by Market Region
Latest issuer-disclosed distribution across 3 reported categories.
AI-led Transformation
Management's 'Lead with AI' strategy is delivering directional change with ~45% of new order book coming from AI deals.
New AI Deals
Secured 40+ new AI deals for Q1FY27 across AI for Technology, Business and Data.
UK & Europe Business Momentum
UK & Europe business continues to deliver strongly with 6.5% sequential revenue growth in rupee terms, backed by good momentum in financial services and public sector.
North America Business Growth
NA business also delivered a strong quarter with 6.2% sequential revenue growth in rupee terms.
Employee Additions
Added 167 employees during the quarter, bringing the total to 4,897 employees as on 30th June, 2026.
AI-driven Demand
AI continues to drive strong momentum with 40+ new deals in Q1'27, contributing significantly to the new order book.
Strong Order Booking
Another strong quarter of order booking resulted in 25% Y-o-Y growth in rupee terms of 12 months order backlog.
Geographic Performance
UK & Europe and NA businesses delivered strong sequential revenue growth in rupee terms.
Geopolitical Uncertainties
Middle East business is seeing impact due to geopolitical uncertainties.
Delayed Collections
EBIDTA performance was a sequential decline largely due to delayed collection in Middle East.
Geopolitical Impact on Middle East
Geopolitical uncertainties are impacting the Middle East business, leading to delayed collections and affecting EBITDA performance.
Operational Efficiency & Cost Management
Management remains focused on operational efficiency and disciplined cost management following a sequential decline in EBITDA margin.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
QoQ comparison is crucial for IT services to assess sequential momentum, project execution, and utilization rates. YoY comparison provides insight into underlying growth trends and performance against seasonal factors.
Revenue from Operations (Rs Crore)
Q1FY27: 985.3; Q4FY26: 938.0; Q1FY26: 914.7. (5.0% QoQ, 7.7% YoY)
Revenue from Operations (Constant Currency)
1.8% QoQ growth.
Operating EBITDA Margin
Q1FY27: 15.4%; Q4FY26: 16.1%; Q1FY26: 15.0%. (71bps QoQ decline, 35bps YoY increase)
Net Profit Margin
Q1FY27: 10.6%; Q4FY26: 11.0%; Q1FY26: 9.9%. (42bps QoQ decline, 67bps YoY increase)
AI Transformation Focus
Management is leading Mastek into an AI transformational company in select verticals, with ~45% of new order book coming from AI deals.
Positive Long-term Growth Outlook
Overall, our long-term growth outlook remains positive, despite current challenges in the Middle East business.
Commitment to Operational Efficiency
Management remains focused on operational efficiency, disciplined cost management, and AI-led productivity.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Constant Currency Revenue Growth | 1.8% QoQ | Sustained sequential growth, especially in key markets like UK & Europe and NA, to confirm demand momentum. |
| Operating EBITDA Margin | 15.4% (Q1FY27) | Reversal of sequential decline and improvement towards previous levels, indicating effective operational efficiency and cost management. |
| 12 Months Order Backlog Growth | 25.0% YoY (rupee terms) | Continued strong growth, indicating future revenue visibility and sustained demand for AI-led services. |
| Impact of Middle East Geopolitical Issues | Impacting business and causing delayed collections. | Resolution of geopolitical uncertainties and recovery in Middle East business performance and collections. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
50NeutralSMA20 -1.9% / mo · MACD +
Technical chart
MASTEKdaily · 1Y · AUTO+8.5%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 51.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~1.9% over last month) — short-term momentum negative.
- RSI(14) at 51 — falling, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 31% off 52W high · 33% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 72 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 72 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 9.9%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 61.1%.
Main drags
- Growth is weaker at 15/25; verify the latest quarterly trend.
- Quality is weaker at 12/20; verify the latest quarterly trend.
- Valuation is weaker at 20/30; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 97th percentile of the scored universe and 95th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 95th pctile, median 69 · Micro: 95th pctile, median 73
134 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 9.9%.
- ▸8 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 12.50
- P/B
- 1.84
- EV/EBITDA
- 8.82
- Market Cap
- 5497.00Cr
Profitability
- ROE
- 15.30%
- ROCE
- 17.70%
- ROA
- 9.74%
- Dividend Y
- 1.35%
Growth (CAGR)
- Revenue 5Y
- 17.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 15.00%
Balance Sheet
- Debt/Equity
- 0.15
- Interest Coverage
- 20.00×
- Altman Z
- 5.10
- Book Value
- 965.00
Cash Flow
- FCF Yield
- 9.90%
- FCF Positive Y
- 8/5
- OCF
- 542.00 Cr
- EPS TTM
- 134.81
Shareholding
- Promoter Hold
- 35.77%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 35%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.