Mastek Q3 FY26 Net Profit Rises 11% Sequentially

Mastek, a trusted AI-first, digital engineering and cloud  transformation partner, announced today its financial results for the Third Quarter and Nine  months of FY26 ended on 31st December 2025. 

Commenting on the Q3FY26 results, Umang Nahata, Chief Executive Officer, Mastek, said: “In Q3FY26, our revenue declined by 3.7% Q-o-Q in rupee terms, primarily due to higher furloughs, planned project go-livesin the US and AMEA, and right-shift of a few engagements.  Despite these near-term headwinds and seasonal softness, we continue to execute with  operational discipline and AI led efficiencies resulting in another quarter of healthy EBITDA Q o-Q growth of 60 bps. Our 12 months order backlog grew 7.0% sequentially, and the pipeline  remains strong across the UK, US and AMEA. We see good demand in Healthcare segment  and AI-led solutions globally. 

Our AI-led services continue to scale, we closed 26+ new engagements delivering significant ROI for our customers using Generative and Agentic AI deployments. We added 17 new clients  in the quarter, taking the total active client to 333. 

We remain committed to drive innovation and value for our clients, leveraging our AI-first  approach. We are confident in our long-term strategy and our ability to deliver sustainable  and profitable growth.” 

Commenting on the Q3FY26 results, Deepak Kedia, Chief Financial Officer, Mastek, said: “We reported operating EBITDA margin of 16.1%, an increase of 60 bps Q-o-Q, this was after  factoring in the impact of labour code changes and furloughs. Our PAT grew by 11.2%  sequentially, with a 149 bps expansion in PAT margin resulting in increase of EPS to Rs. 34.7.  We had a strong quarter adding Rs.210 crores in terms of operating cash . We have declared  an interim dividend of 160% or Rs 8 per share.”

Review of the Consolidated Financial Performance for Quarter ended 31st December 2025: 

Operating Highlights 

• New accounts added during the quarter: The Company added 17 new clients in Q3FY26.  Total active clients during Q3FY26 were 333 as compared to 314 in Q2FY26. 

• 12 months Order Backlog: 12 months order backlog was Rs 2,658.5 crore ($295.8 mn) as on 31st December, 2025 as compared to Rs 2,138.7 crore ($249.8 mn) in Q3FY25, reflecting  growth of 24.3% in rupee terms on Y-o-Y basis and Rs 2,484.3 crore ($279.8 mn in Q2FY26,  reflecting growth of 7.0% in rupee terms on Q-o-Q basis. 

• Employees: As on 31st December, 2025, the company had a total of 4,676 employees, of  which 3,198 employees were based offshore in India while the rest were at various onsite locations. Employee count at the end of 30th September, 2025 was 4,745. Last twelve  months attrition at 17.6% in Q3FY26 in comparison with 18.5% in Q2FY26. 

• Cash Balance: The total cash, cash equivalents and fair value of Mutual Funds stood at  Rs 798.8 crore as on 31st December, 2025 as compared to Rs 656.1 crore as on 30thSeptember, 2025. 

Key wins for the quarter 

• Mastek secured a three-year contract with a UK central government agency to support a  national biometrics platform vital for immigration and law enforcement. The project  enhances security, scalability, while introducing new capabilities using Agile delivery, AI powered DevSecOps, and managed services. Integration of national databases further  positions Mastek as a reliable partner for high-security public systems. 

• Mastek secured a deal was from a UK-based financial statutory regulator to strengthen  their Digital Delivery Hub and ensure reliable regulatory service delivery. The engagement  aims to enhance digital engineering and service management, modernising processes  with agile, iterative, and AI-assisted DevOps methods. Mastek's selection was based on its  engineering expertise, regulatory experience, and history of successful, compliant  transformations. 

• Mastek secured a strategic consulting engagement from a US-based global asset manager to modernize their enterprise data platform for faster, scalable, and compliant decision making. The engagement involves designing an AI-ready framework and migrating from  Netezza to AWS Redshift, resulting in improved performance and regulatory compliance. 

• Mastek secured a strategic partnership with an Australian local government to modernise  the City’s operations using Oracle ERP Cloud, EPM Cloud, and optimising Fusion Projects  modules delivered through ADOPT AI. The engagement improves project management,  transparency, and fiscal accountability through AI-driven insights. Mastek was chosen for  its public-sector expertise and customised solutions. 

• Mastek was engaged by England's Healthcare System to support Digital Prevention  Portfolio by delivering national-scale digital services that improve reach, reliability, and  scalability of public health programmes. The engagement includes product development,  architecture, and national platforms for vaccination, cancer screening, and data  management using AI analytics. This enhances the portfolio’s capacity to build scalable  digital and data products for population health.

• Mastek secured a strategic engagement from a US-based global dental products company  to provide centralized program management services, ensuring consistent quality,  regulatory compliance, and predictable delivery across global initiatives. The solution uses  Salesforce AI-enabled performance insights and standardized measures to improve  delivery efficiency and business alignment, supported by a scalable operating model. 

• Mastek secured an engagement from a global Fortune 500 clinical research provider to  scale an Agentic AI-powered data quality automation platform from pilot to enterprise  production improving reliability and confidence in critical data used across the  organisation. Supported by cloud-ready architecture, the solution enhances data  reliability, simplifies investigation and reporting, and supports faster insights, improved  governance, and robust decision-making. 

• Mastek secured a strategic engagement from a leading UK port to transform core  enterprise operations through Oracle ERP Cloud across 26 legal entities. Using ADOPT AI,  the program streamlines operations, boosts financial agility, and enhances control in a  complex multi-terminal setting enabling greater efficiency and future-ready processes. 

• Mastek, as a strategic partner of a major American Fortune 500 recreational vehicle company secured multiple engagements to drive enterprise modernisation across  customer-facing and operational platforms. Delivered through ADOPT AI, the initiatives  improve consumer engagement, operational efficiency, and business scalability. The  scope also includes optimisation of warehouse operations using Oracle WMS and  infrastructure services, strengthening supply chain performance and supporting sustained  growth. 

Key Achievements & Recognitions: 

Sustainability Journey Highlights: 

Mastek has elevated its performance in the S&P Global ESG Corporate Sustainability  Assessment (CSA) 2025 to an outstanding score of 82/100, a leap from 74/100 last year. This  milestone reflects our relentless drive to embed ESG excellence into every facet of our  business and create lasting value for all stakeholders. 

• 2025: Advanced reporting with a GRI-aligned Sustainability Report, 1st climate scenario  analysis, submitted SBTi targets → CSA 82 

• 2024: Enhanced external commitments by joining UNGC, sustaining SASB alignment, and  beginning of GRI mapping → CSA 74 

• 2023: Established comprehensive policies, ethics frameworks, and privacy controls;  conducted ESG baseline assessment → CSA 48

During the quarter, Mastek and its Subsidiaries received awards and recognitions conferred  by reputable organizations. Some of them are: 

• ISG: Mastek has been recognized as a Leader in Smart/Digital Factory Services in the ISG  Provider Lens™ 2025 – Manufacturing Industry Services & Solutions (Mid-tier & Specialist  IT Firms). 

• Everest: Mastek has been recognized as a Major Contender in the Everest Peak Matrix for  Banking IT Services 2025. In addition, the Company has also been recognized as a  Leader in Digital Transformation Services for Mid-market Enterprises PEAK Matrix®  Assessment 2025. 

• ET Making AI Work Awards 2025: Mastek was recognised at the ET Making AI Awards  2025 with a Special Mention for Outstanding Work in AI Implementation under the Best  Enterprise-Wide AI Transformation (Mid-sized Company) category. 

• Gartner: Mastek has been recognized as an Emerging Specialist in Gartner’s Emerging  Market Quadrant for GenAI Engineering for its “icxPro” platform.