Shares of Mastek soared 13 percent in intra-day trade on Monday, July 13, after the midcap IT services firm reported a robust set of earnings for the quarter ended June 2025 (Q1FY26). The company’s performance was buoyed by healthy year-on-year growth in profit and revenue, along with stable margins despite sequential softness in constant currency revenues.
Mastek posted a consolidated net profit of ₹92 crore in Q1FY26, marking a sharp 28.7 percent increase from ₹71.5 crore reported in the same quarter last year. Revenue also rose 12.5 percent YoY to ₹914.7 crore, compared to ₹812.9 crore in Q1FY25, underscoring strong business momentum across key markets.
The company reported EBITDA of ₹137.3 crore, up 10.8 percent year-on-year from ₹123.8 crore. Operating margin for the quarter stood at 15.1 percent, broadly stable when compared to 15.2 percent in the year-ago period. This indicates that the company has been able to manage growth-related cost pressures effectively.
However, on a sequential basis, Mastek saw a 1.1 percent decline in constant currency revenue—its first drop after four straight quarters of growth. Margins also continued to soften, slipping to 15 percent in Q1FY26, from 15.3 percent in Q4FY25 and 15.25 percent in Q1FY25, marking the third consecutive quarter of margin contraction.
Business Geography and Order Book Update
The UK market, which accounts for nearly 64 percent of Mastek’s overall revenue, remained a strong pillar, growing 9.6 percent sequentially during the quarter. Additionally, the company’s order book showed continued resilience, with deal wins rising 2.5 percent quarter-on-quarter and 8.3 percent on a year-on-year basis.
Mastek also maintained a healthy liquidity position, ending the quarter with ₹549 crore in cash on its books—a positive signal for future investment and growth.
Stock Price Performance: Recovery in Motion
Following the earnings announcement, Mastek’s stock jumped as much as 13 percent to hit a day’s high of ₹2,817.75. With this rally, the stock now trades just 16.5 percent below its 52-week high of ₹3,375, touched in December 2024. It had earlier hit a 52-week low of ₹1,882.90 in April 2025.
After a sluggish start to 2025—logging declines of 13 percent in January and 14 percent in February—Mastek’s stock has staged a sharp turnaround. It gained 11.5 percent in May, 5 percent in June, and over 11 percent so far in July, extending gains for a third straight month. However, over a one-year period, the stock is still down by a little over 5 percent.
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