Mastek Ltd

Mastek Limited reported Q2FY27 revenue of $107.3 million, a 2.4% sequential increase, with EBITDA at 14.4%, down 100 basis points from Q1 due to salary hikes and ESOPs. The 12-month order backlog grew 2.3% YoY but declined 7.7% sequentially due to delayed project starts and slower consumption. The UK business saw robust revenue growth of 4.1%, driven by Financial Services (16% growth) and new energy/utilities contracts. North America's order backlog increased by over 50% YoY, with strong AI transformation deals in Healthcare & Life Sciences, retail, and manufacturing. APAC and Middle East faced uncertainty, with revenue rebounding from older contracts but ongoing geopolitical risks. Management highlighted strategic partnerships like Innovaccer for AI-driven Healthcare solutions and Service-as-a-Software offerings, which have shown early success. AI deals accounted for over 40% of Q2 deals, with a focus on transformation and productivity. Financials included a 3.4% sequential revenue growth in rupees and a 10.3% PAT margin. Margins were pressured by ESOPs, wage hikes, and mix shifts, but AI efficiencies and restructuring aim for a 160 bps improvement in the medium term. The company emphasized its pivot toward AI-native solutions and confidence in FY27 outperforming FY26 despite Middle East challenges.

The document emphasizes strong AI momentum, strategic partnerships, and confidence in future growth despite short-term challenges.