Mastek Q1 Net Profit Rises 15% To ₹106.2 Crore

Mastek Ltd has reported a 15.3% year-on-year rise in consolidated net profit to ₹106.2 crore for the quarter ended June 30, 2026. The company's revenue from operations increased 2.5% to ₹938 crore during the same period.

The quarterly results show that Mastek's net profit remained broadly flat compared to the previous quarter, which was ₹105.9 crore. However, revenue declined from ₹985 crore in the March 2026 quarter.

The company's consolidated revenue from operations stood at ₹938 crore in Q1 FY27, compared to ₹915 crore in the corresponding quarter last year. Total income rose to ₹962 crore from ₹925 crore, while net profit increased to ₹106.2 crore from ₹92.1 crore.

Mastek's total expenses were ₹813 crore, up from ₹805 crore a year earlier. Profit before exceptional items and tax improved to ₹149 crore from ₹121 crore in Q1 FY26.

The company has secured a £49m five-year UK Home Office biometrics contract. Compared to the March 2026 quarter, revenue from operations declined 4.8% from ₹985 crore to ₹938 crore. Total income also eased to ₹962 crore from ₹997 crore, while total expenses fell to ₹813 crore from ₹859 crore.

Mastek's employee benefit expenses declined sequentially to ₹503 crore from ₹533 crore, while other expenses reduced to ₹284 crore from ₹301 crore. The company reported basic earnings per share of ₹34.25 and diluted earnings per share of ₹34.01 for the quarter.

Segment-wise, the UK and Europe business contributed ₹664 crore in revenue, followed by North America at ₹214 crore and AMEA at ₹114 crore. During the quarter, the company allotted 3,442 equity shares under its employee stock option plans.

For FY26, Mastek reported revenue from operations of ₹3,699 crore and consolidated net profit of ₹404 crore. Profit before tax for the year stood at ₹521 crore, while basic earnings per share were ₹130.45.

The company's results were affected by the statutory impact of India's new Labour Codes, which resulted in an exceptional charge. Mastek has appointed Marilyn Jones as an additional director.

The company's performance in Q1 FY27 indicates a positive trend, with revenue growth and improved profitability. However, the decline in revenue compared to the previous quarter and the exceptional charge related to the new Labour Codes are factors to be considered.

Mastek's results are significant for the Indian IT industry, as they reflect the company's ability to adapt to changing market conditions and regulatory requirements. The company's growth in revenue and profitability is a positive indicator for the industry as a whole.

In conclusion, Mastek's Q1 FY27 results show a 15.3% year-on-year rise in consolidated net profit to ₹106.2 crore, with revenue growth of 2.5% to ₹938 crore. The company's performance is a reflection of its ability to navigate the challenges of the IT industry and adapt to changing market conditions.