Mastek Q1 FY27 Results (NSE: MASTEK)
Signal: Growth reaccelerated
The read
Revenue growth of 7.7% YoY and EBIT margin expansion of 57bps to 14.7% mark a steady start to FY27. UK & Europe continues to drive momentum; North America shows margin recovery. Standalone revenue declined, indicating earnings concentration in subsidiaries. No exceptional items this quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹985.25 Cr | +7.7% | +5.0% |
| EBIT | ₹145.05 Cr | +12.0% | |
| Net profit | ₹105.88 Cr | +15.0% | |
| EPS | ₹34.16 | +14.8% | |
| EBIT margin | 14.7% |
P&L walk
Revenue growth resilient at 7.7% YoY; EBIT margin expanded 57bps to 14.7% driven by lower finance cost and controlled other expenses; PAT grew 15% YoY with no exceptional items.
Segments
UK & Europe remains the growth engine with revenue up 13.8% YoY and segment result up 17.2%; North America result jumped 51% YoY to ₹927 lakh, driven by improved margins; AMEA revenue declined 10.1% and profit halved, dragging overall growth.
Key positives
- Revenue ₹985 Cr, +7.7% YoY, driven by UK & Europe (+13.8% YoY).
- EBIT margin expanded 57bps YoY to 14.7%, aided by lower finance cost and cost control.
- North America segment PBIT jumped 51% YoY to ₹927 lakh, indicating margin improvement.
- PAT ₹106 Cr, +15% YoY; EPS ₹34.16, +14.8% YoY.
- No exceptional items this quarter (vs ₹2,373 lakh loss in Q4FY26).
Key concerns
- AMEA segment revenue declined 10.1% YoY to ₹10,800 lakh and PBIT halved, posing drag.
- Standalone revenue fell 3.3% YoY and PAT halved, highlighting reliance on subsidiaries.
- Employee cost as % of revenue crept up to 54.1% vs 53.6% YoY, pressuring margins.
- QoQ EBIT margin declined from 16.6% in Q4FY26 to 14.7%, partly seasonal but notable.
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