Mastek Q1 FY27 Net Profit Rises 15% YoY To ₹106.2 Crore; Revenue Grows To ₹938 Crore

Mumbai: Mastek Ltd reported a 15.3 per cent year-on-year rise in consolidated net profit to Rs 106.2 crore for the quarter ended June 30, 2026, while revenue from operations increased 2.5 per cent to Rs 938 crore.

Sequentially, net profit remained broadly flat compared with Rs 105.9 crore in the March 2026 quarter, whereas revenue declined from Rs 985 crore. The quarter included an exceptional charge related to the statutory impact of India's new Labour Codes.

Opening Performance Summary

Consolidated revenue from operations stood at Rs 938 crore in Q1 FY27 compared with Rs 915 crore in the corresponding quarter last year. Total income rose to Rs 962 crore from Rs 925 crore, while net profit increased to Rs 106.2 crore from Rs 92.1 crore.

Total expenses were Rs 813 crore against Rs 805 crore a year earlier. Profit before exceptional items and tax improved to Rs 149 crore from Rs 121 crore in Q1 FY26.

Sequential Performance

Compared with the March 2026 quarter, revenue from operations declined 4.8 per cent from Rs 985 crore to Rs 938 crore. Total income also eased to Rs 962 crore from Rs 997 crore, while total expenses fell to Rs 813 crore from Rs 859 crore.

Net profit was largely unchanged at Rs 106.2 crore versus Rs 105.9 crore in Q4 FY26. Profit before tax declined to Rs 125 crore from Rs 138 crore after accounting for an exceptional loss of Rs 23.7 crore arising from the statutory impact of the new Labour Codes.

Key Drivers

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

Segment-wise, the UK and Europe business contributed Rs 664 crore in revenue, followed by North America at Rs 214 crore and AMEA at Rs 114 crore. During the quarter, the company allotted 3,442 equity shares under its employee stock option plans, resulting in a marginal increase in paid-up equity share capital.

Full-Year Context

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

The company noted that the statutory impact of the new Labour Codes had also affected annual results through an exceptional charge.

Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.