Mastek Ltd FY26 Management Discussion and Analysis
Macroeconomic Overview
Global Economy
The global economy remained resilient in 2025 despite an increasingly complex operating environment characterised by geopolitical conflicts, trade policy shifts, rapid technological advancements, and uneven regional recoveries. Global GDP expanded by 3.4% in 2025, matching the growth recorded in 2024, and is projected to moderate to 3.1% in 2026 before improving to 3.2% in 2027.
Economic activity during the year was shaped by the ongoing Russia-Ukraine conflict, heightened tensions in the Middle East, and evolving US tariff policies, which contributed to higher shipping costs, energy price volatility, and greater uncertainty in global trade. These developments accelerated supply chain diversification, prompting businesses to strengthen resilience through alternative manufacturing hubs and sourcing strategies. At the same time, Artificial Intelligence (AI) emerged as a key catalyst for economic transformation, driving investments in digital infrastructure, cloud computing, semiconductors,
Real GDP Growth ( Annual % change) and advanced technologies, while improving productivity and fostering innovation across industries.
During 2024 and 2025, the United States witnessed a moderation in growth, supported by strong technology investments and favourable financial conditions, although inflation remained relatively high and labour market momentum softened. The Euro Area recorded modest but gradually improving growth, with the recovery gaining pace toward late 2025 as inflation eased toward target levels and the region adjusted to earlier energy shocks and tight monetary policy. China, on the other hand, maintained relatively strong growth. However, the growth remained imbalanced, driven largely by exports, while domestic demand, particularly in the property sector, remained weak, resulting in a record trade surplus. Meanwhile, Southeast Asia experienced robust growth, supported by technology exports and supply chain diversification, though it continued to face external risks, such as energy price volatility.
Outlook
The global outlook is increasingly shaped by the rapid advancement of Artificial Intelligence (AI) and the evolving US trade tariff policies. AI is unlocking opportunities across industries by improving productivity, driving innovation, and enhancing efficiency, while changes in tariff policies may heighten trade tensions, increase costs, and strain global supply chains. The impact is expected to differ across regions, with emerging and conflict-affected economies facing greater pressures, whereas advanced economies remain relatively resilient. Even so, global growth is likely to continue, supported by steady consumer demand and improving financial conditions.
Despite ongoing geopolitical tensions and intermittent disruptions in energy and trade markets, the global economy is expected to remain broadly stable. Over the longer term, factors such as demographic shifts, changing consumer behaviour, and improved access to markets and services are expected to support growth. However, risks including trade fragmentation and geopolitical uncertainties persist.
Sustained growth will depend on continued technological adoption and stronger global policy coordination. Among major economies, the United States is expected to remain a key driver of global growth, supported by strong demand and investment, while the Euro Area is likely to experience a gradual recovery. China is stabilising amid structural adjustments, supported by policy measures, and Southeast Asia continues to benefit from robust manufacturing, export growth, and steady domestic consumption.
Sources: https://www.imf.org/-/media/files/publications/weo/2026/ april/english/text.pdf
https://www.weforum.org/stories/2026/04/imf-downgrades-global-growth-and-other-finance-news-to-know/
Indian Economy
India continues to be one of the fastest-growing major economies globally, supported by strong consumer demand, a large young workforce, and steady policy reforms. Indias economy remained resilient in FY26, with GDP growing by 7.7% compared to 7.1% in FY25, according to Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) under the revised 2022–23 base year series. Consumer spending remained consistently strong throughout the year, further supporting overall economic activity. Further, the Reserve Bank of India (RBI) maintained a neutral monetary stance by keeping the repo rate unchanged at 5.25% in April 2026, balancing growth support with inflation management to ensure price stability.
At the same time, recent Free Trade Agreements (FTAs) and trade engagements with the European Union (EU) and New Zealand and ongoing discussions with the United States are further strengthening Indias global trade presence. These agreements are expected to enhance market access for Indian goods and services and support greater integration into global value chains.
The services sector remained a key growth engine, backed by rising demand for digital transformation, cloud adoption and AI-led solutions, as well as Indias strong talent base and expanding global outsourcing opportunities. Accelerating enterprise adoption, of Artificial Intelligence (AI), cloud computing, engineering research and development (ER&D), cybersecurity, and digital transformation solutions continued to drive growth in the technology sector. India also witnessed increased investment in Global Capability Centres (GCCs), with multinational organisations expanding their operations to leverage the countrys skilled talent pool, innovation capabilities, and cost competitiveness.
Outlook
Indias long-term growth outlook remains favourable, supported by strong domestic consumption, continued capital expenditure, and rapid digital transformation. NASSCOM expects AI to become a key catalyst for the next phase of growth, with enterprises increasingly embedding generative AI, automation, and data-driven solutions across business functions to improve productivity and innovation. Growth in Global Capability Centres (GCCs), engineering R&D, semiconductor design, electronics manufacturing, and deep-tech innovation is expected to further strengthen Indias position in the global technology value chain.
A stable and conducive macroeconomic environment is expected to support robust household consumption and sustained capital investment, thereby leading to growth. Furthermore, the Indian economy continues to benefit from rising digital adoption, with the increasing use of UPI and other digital payment systems improving transaction efficiency, supporting financial inclusion, and strengthening the shift towards a more digital and cashless economy. In addition, India is expanding its global digital footprint by signing Digital Public Infrastructure (DPI) cooperation agreements with 24 countries, while UPI is now active in 8 countries, enabling cross-border payments. Through India Stack Global and strong contributions to the Global DPI Repository, India is playing a leading role in helping other nations adopt digital public infrastructure. Total exports of services have also remained resilient, reflecting steady global demand for Indias technology and business services, further supporting the overall economic outlook.
Sources: https://www.pib.gov.in/PressReleaseDetail. aspx?PRID=2235812®=6&lang=1
https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/ PR36179ED854C2504530A4E69A95E76CF144.PDF
https://www.pib.gov.in/PressReleasePage. aspx?PRID=2269286®=48&lang=2
Industry Overview
Global Information Technology (IT) Industry
The global IT industry continued its strong growth trajectory, driven by accelerating enterprise investments in Artificial Intelligence (AI), cloud computing, and digital transformation. According to Gartner, worldwide IT spending reached USD 5.58 trillion in 2025, reflecting 10.7% growth over the previous year, and is projected to increase by 14.2% to USD 6.37 trillion in 2026.
Segment |
2025 Spending | 2025 Growth (%) | 2026 Spending | 2026 Growth (%) |
| Data Centre Systems | 506 | 51.6 | 822 | 62.5 |
| Devices | 790 | 9.7 | 868 | 9.8 |
| Software | 1,271 | 13.9 | 1,468 | 15.5 |
| Services | 1,492 | 3.8 | 1,570 | 5.3 |
| Infrastructure as a Service (IaaS) | 222 | 25.3 | 287 | 29.3 |
| Communication Services | 1,296 | 3.3 | 1,354 | 4.4 |
Overall IT |
5,577 | 10.7 | 6,369 | 14.2 |
Source: Gartner (July 2026)
AI has become the primary driver of technology spending, with organisations rapidly expanding AI initiatives and building the computing capacity required to support increasingly complex AI workloads. As enterprises and hyperscale cloud providers scale next-generation AI infrastructure, investments in data centres, cloud platforms, intelligent applications, and high-performance computing continue to accelerate. Gartner describes this expansion as the largest infrastructure project ever undertaken, highlighting the scale of investments required to support the growing AI ecosystem.
The strongest growth is expected in Data Centre Systems, where spending is projected to rise by 62.5% to USD 822 billion in 2026, following 51.6% growth in 2025. Demand is being fuelled by AI-optimised servers, expanding hyperscale data centres, and the need for greater computing capacity. Infrastructure-as-a-Service (IaaS) is also expected to remain one of the fastest-growing segments, with spending forecast to increase by 29.3% to USD 287 billion, compared with 25.3% growth in 2025, as organisations continue migrating workloads to the cloud.
Software spending is projected to increase by 15.5% to USD 1.47 trillion in 2026, building on 13.9% growth in 2025. Growth is being supported by rising adoption of AI-enabled software, intelligent applications, and enterprise platforms that help organisations automate processes, improve decision-making, and enhance productivity.
Meanwhile, IT services spending is expected to grow by 5.3% to USD 1.57 trillion in 2026, reflecting continued demand for consulting, implementation, managed services, and technology modernisation. Spending on devices is forecast to increase by 9.8% to USD 868 billion, while communication services are expected to grow by 4.4% to USD 1.35 trillion.
Gartner has revised its global IT spending forecast upward, reflecting stronger confidence in AI-led market expansion. Incremental technology investments are increasingly concentrated in AI infrastructure, cloud services, and AI-ready software, while traditional IT segments continue to grow at a comparatively moderate pace. However, organisations continue to face challenges from inflationary pressures, semiconductor and memory supply constraints, rising hardware costs, and the need to balance AI investments with existing technology priorities.
Generative AI is transforming enterprise technology strategies by reshaping software development, business automation, customer engagement, and decision-making. As organisations move from pilot projects to enterprise-wide deployment, the focus is shifting towards scalable implementation and measurable business outcomes. This transition is expected to sustain investments in AI infrastructure, cloud platforms, and intelligent software, while reflecting the IT services industrys role in enabling digital transformation, operational resilience, and long-term business value creation.
Source: https://www.gartner.com/en/newsroom/press-releases/2026-07-27-gartner-forecasts-worldwide-it-spending-to-grow-14-point-2-percent-in-2026-totaling-6-point-37-trillion
Europe IT Spending
The IT industry in Europe is projected to grow steadily in CY26, with total IT spending estimated to reach approximately USD 1.4 trillion, up 11.1% from CY25, according to Gartner. This growth is being driven by continued investments in artificial intelligence (AI), next-generation platform computing, and cybersecurity, as organisations prioritise digital transformation despite budget and workforce constraints.
IT services are expected to remain a key contributor to this expansion, with spending projected to reach nearly USD 540 billion in CY26, growing at around 10.1%. The increase is supported by demand for consulting, systems integration, and managed services, as organisations seek specialised capabilities to implement AI solutions, upgrade legacy infrastructure, and accelerate digital transformation.
Mirroring these broader regional priorities, the UK market is increasingly defined by a strategic pivot toward sector-specific precision as organisations look to navigate significant legacy constraints through targeted AI and digital modernisation.
Segment |
2025 Spending | 2025 Growth (%) | 2026 Spending | 2026 Growth (%) |
| Data Center Systems | 83,632 | 38.2 | 99,335 | 18.8 |
| Devices | 143,668 | 11.0 | 158,193 | 10.1 |
| Software | 290,235 | 14.7 | 335,409 | 15.6 |
| IT Services | 490,398 | 9.0 | 539,927 | 10.1 |
| Communication Services | 277,826 | 7.0 | 294,988 | 6.2 |
Overall IT |
1,285,760 | 11.6 | 1,427,852 | 11.1 |
Source: Gartner (November 2025)
UK IT Market
The UK public sectors IT landscape is currently defined by a fundamental shift from generic technology panaceas toward precision solutions tailored to deep domain expertise. While the market reached an estimated value of GBP 16.8 billion in 2024, nominal growth was subdued at 1.8% due to general election uncertainty, budgetary limitations, and critical skill shortages. Success in this evolving environment depends on a suppliers ability to navigate legacy constraints while delivering measurable outcomes through emerging technologies like AI.
Central Government
Central government remains the largest subsector, accounting for 43% of the public sector Software and IT Services (SITS) market. However, transformation is hampered by a significant legacy debt: an average of 28% of technology is classified as legacy, with some departments spending 70% to 85% of their budgets on upkeep rather than modernisation. Many systems are over 30 years old, running outdated languages that impede real-time data sharing and cyber resilience. Despite a GBP 20 billion investment in technology modernisation, progress remains slow due to a lack of comprehensive inventories across departmental estates.
Challenging efficiency targets are driving a step change in investment, with the government aiming for GBP 14 billion in technical efficiency gains by FY29. Departments are increasingly looking toward agentic AI as a solution for productivity, particularly where the government falls behind industry rates for in-demand skills. Digital identity remains a priority, with the GOV.UK One Login programme expanding to enable all central government services to issue digital verified credentials by the end of 2027.
Leading Growth Areas
Agentic AI for productivity and process redesign. Digital verification and identity platforms (e.g., GOV.UK One Login).
Data interoperability and the creation of a unified source of truth across departments.
Defence
Defence IT spending has seen a collapse of the traditional separation between equipment and IT services. The UK Government has committed over GBP 4 billion to autonomous systems over five years, seeking a high-low mix where 80% of combat capability is derived from AI-enabled or autonomous platforms. Recent performance has been sustained by project work in highly secure areas and development of secure environments for sharing classified information.
Projected spending increases are contingent on driving UK economic growth and delivering social value. Military leaders now expect wartime pace in innovation, favouring suppliers who can demonstrate rapid iteration and software-defined capability.
Leading Growth Areas
Autonomous and AI-enabled defence platforms. System-of-systems architectures, such as the GBP 1 billion Digital Targeting Web.
Secure software integration, MLOps, and edge compute capabilities.
Health (NHS)
Health was the fastest-growing subsector in 2024, up by 3.5% to GBP 2.9 billion While the NHS achieved 2.7% productivity growth in FY25, this activity has not translated into waiting list improvements because tools have focused on accelerating activity rather than redesigning care pathways. Furthermore, high-profile ransomware attacks, such as the 2024 Synnovis incident, have exposed critical vulnerabilities in legacy infrastructure and supply chains.
The 10-Year Health Plan mandates the NHS App as the ‘digital front door, with 95% of appointments expected to be bookable via the app by FY29. Investment will focus on digital-first pathways, ambient voice technology, and AI-assisted triage.
Leading Growth Areas
AI-driven clinical tools and preventive analytics. Digital patient engagement via the NHS App and NHS Notify.
Cyber resilience services and secure-by-design architectures.
Sources: Tech Market View, Public Sector Supplier Prospects 2026 and Beyond; Tech Market View, Public SectorPredictions 2026
North America IT Spending
The North American IT market remained mature and innovation-led, driven by strong enterprise focus on digital transformation, artificial intelligence, and cloud modernisation. Organisations are increasingly adopting hybrid and multi-platform architectures to improve scalability, resilience, and regulatory compliance. Demand is further supported by rising investments in cybersecurity, automation, and data analytics, while nearshore delivery models are helping mitigate talent constraints.
The North America IT services market continued to grow, supported by enterprise digital transformation, cloud migration, artificial intelligence (AI) adoption, and rising cybersecurity investments. According to Mordor Intelligence, the IT market in North America was valued at USD 552 billion in 2025 and is expected to increase from USD 591.58 billion in 2026 to USD 836.31 billion by 2031, registering a CAGR of 7.17% during 2026–2031. The region accounted for around 40% of global IT spending and recorded 10.2% growth in 2025. IT consulting and implementation remained the largest segment, accounting for 45.02% market share in 2025, while managed services are expected to grow at a CAGR of 8.22% through 2031. Cloud adoption continues to be a key growth driver in the IT market. While on-premises deployments accounted for 67.12% of the market in 2025, cloud deployments are projected to expand at a CAGR of 8.71% through 2031. This growth is supported by the increasing migration of enterprise workloads, with 75% of IT workloads expected to run in cloud environments by 2027.
North America IT Services Market Size (in USD billions)
Source: Mordor Intelligence
The United States accounted for 40.6% of the North America IT services market in 2025, supported by enterprise modernisation, government technology initiatives, and cybersecurity investments. Canada is projected to grow at a CAGR of 7.86% through 2031, while Mexico is emerging as a near-shoring hub, with hybrid cloud adoption expected to increase from 45% in 2024 to 58% by 2026. By end-user industry, financial services remained the largest contributor with a 29.6% share in 2025, while healthcare and life sciences are expected to grow at a CAGR of 7.4% through 2031. Large enterprises accounted for 69.95% of revenue share in 2025, although SMEs are expected to expand at a faster CAGR of 8.4% through 2031. Growth continues to be driven by rising demand for AI-enabled solutions, cybersecurity, and managed services. However, the market outlook remains influenced by a projected shortage of 1.2 million developers in the US by 2026, a 3.3% increase in median IT wages in 2025, and evolving regulatory and data sovereignty requirements.
Key industries such as financial services, healthcare, and manufacturing are accelerating technology adoption by integrating AI, automation, and advanced analytics into core operations. At the same time, stricter data privacy and sovereignty regulations are shaping IT strategies, increasing the need for localised, compliant solutions. Service providers are strengthening their capabilities in AI-led services, cloud-native development, and platform-based delivery models to remain competitive in a rapidly evolving landscape.
Asia, Middle East and Africa (AMEA) IT Spending
The AMEA region continues to witness strong momentum in IT spending, driven by expanding digital ecosystems, rising enterprise investments, and the rapid adoption of intelligent, data-driven technologies. Across Asia, growth is being driven by the expansion of digital platforms, the rising fintech and e-commerce activities, and a strong technology talent base, with enterprises focusing on infrastructure modernisation, cybersecurity, automation, cloud adoption, and analytics. In Asia, growth is driven by large-scale digital platforms, thriving fintech and e-commerce sectors and a strong talent base, with demand centred on infrastructure modernisation, cybersecurity, automation and analytics.
Geopolitical developments, including the ongoing Middle East conflict, evolving trade policies, and supply chain realignments, created a more uncertain operating environment across the region. Higher energy prices and persistent inflationary pressures affected spending in some consumer and hardware segments. Despite these headwinds, organisations continued to invest in enterprise technologies, focusing on cloud computing, AI infrastructure, cybersecurity, data centre modernisation, and intelligent automation to improve business continuity and operational resilience.
In the Middle East, government-driven digital initiatives, smart infrastructure projects, and sovereign technology platforms are accelerating the adoption of advanced technologies such as AI and next-generation digital services. Africas growth is supported by increasing mobile penetration, expanding fintech adoption, and gradual enterprise digitisation, with long-term potential linked to digital inclusion and infrastructure development. Across the region, enterprises are prioritising scalable technology platforms, cybersecurity, and AI-enabled capabilities, while IT services are shifting toward consulting-led, managed, and outcome-based models to support sustained digital transformation.
Outlook
Overall, the global IT industry outlook remains positive, supported by sustained enterprise spending on hosted platforms, adoption of online platforms, and AI integration. Generative AI is emerging as a key growth catalyst, driving investments in advanced computing and reshaping how businesses operate. At the same time, continued demand for hosted environment migration and managed services is enabling more flexible and scalable operating models, supporting steady growth across IT services, software, and infrastructure segments.
Sources: https://www.gartner.com/en/newsroom/press-releases/2026-04-22-gartner-forecasts-worldwide-it-spending-to-grow-13-point-5-percent-in-2026-totaling-6-point-31-trillion-dollars
https://www.gartner.com/en/newsroom/press-releases/2025-08-04-gartner-forecasts-mena-it-spending-to-reach-169-billion-us-dollars-in-2026#:~:text=IT%20spending%20in%20 the%20Middle,latest%20forecast%20by%20Gartner%2C%20Inc.
https://www.gartner.com/en/newsroom/press-releases/ gartner-forecasts-information-information-spending-in-europe-to-grow-11-percent-in-2026
https://www.itnews.asia/news/apac-it-spending-stays-resilient-in-2026-buoyed-by-data-centres-625511.
https://www.imarcgroup.com/it-services-market
https://www.mordorintelligence.com/industry-reports/north-america-it-services-market
https://www.idc.com/resource-center/blog/idc-point-of-view-first-look-at-the-war-in-the-middle-east-and-its-impact-on-it-spending-in-the-region-and-globally/
https://www.tussell.com/insights/ai-procurement-tracker
https://www.marketdataforecast.com/market-reports/united-kingdom-healthcare-it-market
https://www.mordorintelligence.com/industry-reports/united-kingdom-itservices-market
Global Market Dynamics
Enterprise Applications, SaaS, and Data Management
The global enterprise application market was valued at USD 320.4 billion in 2024 and is projected to grow from USD 399.8 billion in 2026 to USD 625.7 billion by 2030, registering a CAGR of 11.8% during 2025–2030. North America currently dominates this space, accounting for 42.5% of revenue in 2024, fuelled by massive investments in digital infrastructure and cloud analytical tools. This growth is largely driven by the rapid integration of advanced technologies like Artificial Intelligence (AI), Machine Learning, and Intelligent Process Automation (IPA) into core business processes.
Organisations are increasingly adopting these scalable software solutions to streamline complex operations across sales, accounting, and supply chain management, aiming to reduce costs while enhancing process agility. Furthermore, enterprise software now plays a critical role in analysing both structured and unstructured data to provide actionable market insights. By enabling seamless collaboration among global teams and ensuring secure information sharing through enhanced security measures, these applications have evolved from basic tools into essential drivers of operational excellence in a competitive global environment.
Complementing this trend, the global Software-as-a-Service (SaaS) market was valued at USD 315.68 billion in 2025 and is expected to grow from USD 375.57 billion in 2026 to USD 1,482.44 billion by 2034, at a CAGR of 18.7% during the forecast period. North America held the largest market share at 46.9% in 2025, driven by widespread enterprise adoption of cloud-based platforms.
Generative AI is fundamentally reshaping the SaaS landscape, automating up to 30% of coding tasks and enabling the delivery of highly personalised user experiences that 70% of customers now expect. Another notable trend is the rise of micro SaaS—niche-focused businesses catering to specific sectors—which reported an average profit margin of 70% to 80% in 2023 due to low overhead and high automation. To maintain flexibility and avoid vendor lock-in, enterprises are increasingly pursuing multi-cloud strategies, spreading workloads across providers. This shift toward decentralised yet integrated SaaS ecosystems allows businesses to remain responsive to market changes while driving productivity through AI-led automation.
The growing reliance on cloud platforms and digital applications is also accelerating demand for enterprise data management (EDM) solutions. The global EDM market was valued at USD 123.1 billion in 2025 and is projected to grow from USD 137.3 billion in 2026 to USD 319.6 billion by 2033, registering a CAGR of 12.8% during 2026–2033. North America accounted for 35.7% of global revenue in 2025, driven by increasing investments in data infrastructure, analytics, and governance frameworks.
With data breach costs reaching record highs of USD 4.35 million globally, EDM has transitioned from a back-office function into a strategic capability essential for risk mitigation and regulatory compliance. Organisations are heavily investing in data governance, master data management (MDM), and data quality solutions to create AI-ready data architectures. Modern platforms are already demonstrating the ability to reduce data pipeline development timelines from months to days through automation.
Collectively, these trends highlight the increasing integration of engineering, enterprise applications, cloud technologies, and enterprise data management within modern business operations. Supported by AI adoption, cloud migration, and growing demand for intelligent, data-driven enterprises, organisations are expected to continue investing in scalable digital platforms that enhance operational efficiency, resilience, and long-term competitiveness.
Sources:
Nasscom Report - The Global ER&D Shift: Evolution of Engineering Services and Indias Competitive Edge
https://www.grandviewresearch.com/industry-analysis/enterprise-application-markethttps://www. fortunebusinessinsights.com/software-as-a-service-saas-market-102222
https://www.grandviewresearch.com/industry-analysis/ enterprise-data-management-market
Digital Transformation (AI)
Overview
Technology-driven transformation is becoming central to how enterprises operate, compete, and grow. Organisations across industries are adopting tools such as artificial intelligence, hosted platforms, data analytics, automation, and the Internet of Things (IoT) to modernise operations. These capabilities help streamline processes, enable faster decision-making, reduce costs, and strengthen overall performance while improving how businesses engage with customers.
The global market for technology-led transformation is expanding rapidly. According to Research and Markets, it is projected to grow from USD 2.1 trillion in CY25 to USD 2.54 trillion in CY26 and further to USD 5.01 trillion by CY30. This expansion is being supported by rising enterprise spending on advanced technologies, increasing demand for real-time insights, and the shift toward platform-based operating models. Companies are also investing in automation, digital engagement tools, and data-centric approaches to remain competitive in a fast-evolving environment.
Digital Transformation Market
Artificial intelligence is playing a central role in this shift by enabling automation, improving forecasting, strengthening interactions, and supporting more informed decisions. Many enterprises are building integrated technology environments that combine data, analytics, and scalable infrastructure, allowing them to roll out solutions more effectively and unlock new areas of innovation.
Workplace models are also evolving, with remote and hybrid setups becoming more common. To support this shift, enterprises are implementing collaboration tools, digital workflows, and productivity solutions that enable seamless operations across distributed teams. These investments are helping improve resilience and ensure continuity in dynamic business conditions.
Outlook
Looking ahead, enterprise transformation is expected to move beyond basic adoption toward deeper integration across business functions. Industries such as banking, healthcare, manufacturing, retail, and government are likely to continue investing in advanced capabilities to strengthen competitiveness and long-term expansion. The need for automation, faster insights, and better customer engagement will continue to drive adoption across sectors. Asia Pacific is emerging as a major acceleration region, supported by strong technology adoption, increasing enterprise investments, and supportive government initiatives. As businesses focus on innovation and long-term value creation, technology-led transformation will remain a key driver of industry expansion in the years ahead.
Sources: https://www.researchandmarkets.com/reports/5939230/ digital-transformation-market-report
Company Overview
Mastek Ltd. (hereafter referred to as ‘Mastek or ‘our Company) is a global provider of enterprise AI, digital, and cloud services, helping organisations derive measurable and sustainable value from their technology investments. Our Company helps businesses simplify complex digital environments and accelerate transformation across industries such as healthcare, retail, manufacturing, higher education, financial services, and the public sector. With a presence in over 40 countries, including the UK, the US, Europe, the Middle East, and Asia Pacific, Mastek delivers a broad range of capabilities across digital experience, digital engineering, cloud implementation, data, automation, artificial intelligence, and managed services. Our team of more than 4,500 professionals works closely with clients to deliver tailored, scalable solutions aligned to evolving business needs.
Mastek works closely with leading technology partners, including Oracle, Salesforce, Microsoft, AWS, Snowflake, and Databricks, to deliver integrated, innovative solutions to mid-sized businesses and Fortune 1000 companies. Our Company also focuses on building a strong ecosystem through partnerships with start-ups, academia and our own intellectual property to drive continuous innovation. Guided by its core values of trust, value and velocity, Mastek supports close to 400 active customers globally. Its approach emphasises long-term relationships, consistent excellence in delivery, and a strong commitment to ethical practices, sustainability, and responsible governance, ensuring balanced, sustainable growth.
Mastek continues to strengthen its market positioning through consistent recognition from leading global analyst and advisory firms, including Gartner, ISG, Everest Group, IDC, Avasant, and others. During the year, the Company received recognition for its industry expertise (healthcare, public sector, local government, banking and financial services, and manufacturing) and technology capabilities (Oracle, Salesforce, Microsoft, and AWS), reflecting the breadth of its AI-first digital transformation portfolio.
Some of its key analyst recognitions during the year included being named a Leader in the Everest Group Digital Transformation Services for Mid-market Enterprises PEAK Matrix? Assessment 2025, the ISG Provider Lens™ Public Sector Services and Solutions 2025 (UK and Australia), and the ISG Provider Lens™ Manufacturing Industry Services (Smart/ Digital Factory Services). The Company was also recognised in the Gartner Emerging Market Quadrant for GenAI Engineering 2025 and in Everest Groups Data & AI Services for Mid-market Enterprises PEAK Matrix? 2025.
Business Review
We reported total consolidated operating revenue of INR 369,875 lakh for FY26, up from INR 345,523 lakh in FY25, reflecting healthy growth. We delivered a strong performance in the UKI and Europe region, where revenue increased to INR 241,129 lakh from INR 198,052 lakh in the previous year. In North America, we achieved revenue of INR 82,853 lakh, down from INR 93,285 lakh in FY25. Our AMEA business revenue declined to INR 45,893 lakh from INR 54,186 lakh in FY25. The underlying demand across markets continues to remain steady.
Revenue by Geography
Geographies |
FY26 Revenue | FY25 Revenue | ||
| (INR in lakh) | Share (%) |
(INR in lakh) Share (%) | ||
| UKI and Europe | 241,129 | 65.2 | 198,052 | 57.3 |
| North America | 82,853 | 22.4 | 93,285 | 27.0 |
| AMEA | 45,893 | 12.4 | 54,186 | 15.7 |
Total |
369,875 | 100.0 | 345,523 | 100.0 |
The Government and Education segment remained our largest revenue contributor in FY26, accounting for 39.5% of total revenue. Our Health and Life Sciences segment recorded notable growth, with its share rising to 24.5% from 20.4%. Our expansion in this area was driven by increasing adoption of digital technologies across healthcare and life sciences organisations.
Revenue by Customer Segment
| FY26 | FY25 | |||
Customer Segment |
Revenue (INR in lakh) Share (%) | (INR in lakh) | Revenue Share (%) | (INR in lakh) |
| Government and Education | 146,262 | 39.5 | 139,987 | 40.5 |
| Health and Life Sciences | 90,552 | 24.5 | 70,331 | 20.4 |
| Manufacturing & Technology | 44,582 | 12.1 | 46,541 | 13.5 |
| Retail & Consumer | 41,146 | 11.1 | 47,094 | 13.6 |
| Financial Services | 47,333 | 12.8 | 41,570 | 12.0 |
Total |
369,875 | 100.0 | 345,523 | 100.0 |
Digital and Application Engineering services became the largest contributor to our revenue in FY26, accounting for 50.8%, compared with 46.5% in the previous year, driven by growing demand for transformation and modernisation initiatives. Our Data, Automation, and AI services also expanded their share to 12.3% from 9.2%, reflecting increased adoption of intelligent, analytics-led solutions. The contribution from Digital Commerce and Experience decreased to 10.4% from 13.0%, as clients prioritised investments in foundational digital capabilities and data-driven programmes.
Oracle continued to be a major growth driver for our Company across global markets. It supported our work in enterprise modernisation, healthcare transformation, and the digitalisation of public-sector services, helping us expand our service offerings and strengthen client relationships. During FY26, our Company further strengthened its position as a leading Oracle partner, earning recognition as one of Oracles top global partners for advancing AI adoption, and receiving three accolades at Oracle AI World. Strong demand for cloud transformation, enterprise applications, data analytics, and AI-enabled solutions enabled our Company to deepen client relationships, expand its role in large-scale transformation programmes, and build a robust opportunity pipeline. With the growing demand for AI-led transformation, Oracle remains a strategic pillar of our Companys growth and expansion.
Revenue by Service Offerings
| FY26 | FY25 | |||
Service Offerings |
Revenue | Revenue | ||
| (INR in Lakh) | Share (%) |
(INR in Lakh) | Share (%) |
|
| Digital and Application Engineering | 187,838 | 50.8 | 160,538 | 46.5 |
| Oracle Cloud and Enterprise Apps | 98,308 | 26.6 | 108,130 | 31.3 |
| Digital | 38,301 | 10.4 | 44,960 | 13.0 |
| Commerce and Experience Data, Automation, and AI | 45,428 | 12.3 | 31,895 | 9.2 |
Total |
369,875 | 100.0 | 345,523 | 100.0 |
Business Strategies
Lead with AI—Embedding AI across the Business:
We are positioning ourselves as an AI-first digital engineering partner by integrating AI into our services and internal operations. Our focus is on expanding capabilities in data, analytics, and generative AI to deliver clear, measurable results for clients. Through our proprietary framework, Adopt AI, we are helping organisations adopt AI more quickly while improving the quality of our delivery. We are further investing in skilled AI talent, reusable accelerators, and agentic managed services to enhance productivity and increase our share of large, multi-year transformation programmes across markets.
Mastek Positions Itself as an AI Transformation Partner AcrossKey Verticals:
Mastek is accelerating its journey to become a trusted AI transformation partner in focused verticals including healthcare, the public sector, financial services, manufacturing, and retail. With AI driving the next wave of technological change, Mastek is committed to helping enterprises evolve into AI-native organisations through holistic transformation—beyond engineering alone. Leveraging deep expertise in enterprise transformation, data, and engineering and strong relationships in sectors such as public sector and healthcare, Mastek is well poised to guide clients through this shift. The company is enhancing its transformation capabilities, expanding partnerships with AI frontier and specialist firms, and reshaping its talent pool—evolving from an engineering powerhouse into an AI transformation champion.
Building Leadership in the Mid-Market Segment:
We are strengthening our presence in the mid-market by delivering flexible, industry-focused digital transformation solutions. Our approach is centred on helping these businesses adopt cloud, data, and AI-driven modernisation at scale. We ensure faster execution and better cost efficiency. Recognition as a leader in mid-market digital transformation underscores our ability to deliver client-centric solutions through standardised platforms and a robust global delivery network. This segment continues to play an important role in driving consistent and diversified growth.
Deepening Industry Focus:
We continue to strengthen our domain-led strategy by focusing on key verticals such as Healthcare, Public Sector, Financial Services, Manufacturing and Retail. We deliver tailored solutions that address sector-specific challenges and help our clients navigate their digital transformation journeys effectively by combining deep industry expertise with advanced technology capabilities.
Scaling Operations in the UK Public Sector and the US Healthcare Space:
We are driving growth by focusing on high-potential sectors, especially the UK public sector and the US healthcare. In the UK, our longstanding participation in large government frameworks and national-level health programmes positions us to win multi-year, AI-enabled transformation deals with strong revenue visibility. In healthcare, we use AI and cloud technologies to improve efficiency and patient outcomes. At the same time, we are expanding our presence in the Middle East to tap into new digital opportunities. These sectors offer strong revenue visibility and support long-term growth.
Building Stronger, Long-Term Client Engagements:
We are focusing on growing our business with existing clients by increasing our share of their spending and expanding our service offerings. Our approach is to build long-term partnerships by delivering consistent quality and clear results. We are leveraging our strong client relationships and industry expertise to drive repeat business and improve our ability to win new deals. We are using account expansion as a key way to improve revenue visibility and strengthen our order pipeline, ensuring steady and resilient growth across markets.
Leveraging Strategic Alliances for Growth:
We are leveraging our strong network of global technology partners to strengthen our capabilities and accelerate our go-to-market efforts. Our partnerships with leading cloud providers and enterprise platform companies enable us to deliver integrated, advanced solutions. We are also working closely with these partners to co-create new ideas and reach new client segments without making large additional investments. Our alignment with partner ecosystems helps us win more deals and expand our presence across industries. This approach supports faster growth and helps us stand out in a competitive market.
Accelerating Innovation under the Mastek 4.0 Vision:
We are investing in our own platforms, reusable assets, and IP-led solutions to improve delivery efficiency and create differentiated offerings. Our focus is on combining cloud, AI, and enterprise platforms to build scalable, future-ready solutions. We are enabling faster implementation and better outcomes for our clients through these innovations. We are aligning our innovation efforts with emerging technologies, including Industry 4.0 and digital engineering, to drive long-term growth while improving operational efficiency.
Operational Highlights of FY26
UKI AND EUROPE
The UKI and Europe regions delivered a strong performance in FY26, with the UK remaining Masteks largest and strongest market. Despite a challenging macroeconomic and geopolitical environment, the region demonstrated resilience and sustained growth, underpinned by strong client relationships, consistent execution, and ongoing investments in strategic capabilities. The UK business recorded 21.8% Y-o-Y growth in INR terms, reflecting robust underlying demand and successful delivery across key accounts.
A key differentiator for Mastek in the region is its strong healthcare domain expertise, developed through long-standing relationships with the NHS and leading global payer and provider organisations. This deep sector knowledge strengthens the Companys competitive position and enables it to win and scale high-value digital transformation engagements.
Business Performance
The UKI and Europe business remained a key growth engine for the organisation, anchored in a strong digital engineering foundation and deep domain expertise across the public sector, healthcare, and enterprise clients. The region delivered broad-based growth across key sectors, supported by sustained demand for cloud, data, and AI-led transformation services.
Healthcare remained one of the largest revenue contributors during the year, supported by deeper engagement across the NHS ecosystem and the expansion of large-scale data warehousing and digital transformation programmes. Significant progress was also made in NHS data modernisation initiatives, enhancing system performance, scalability, and near-real-time data processing capabilities. These advancements strengthened analytics-driven decision-making across healthcare systems and created a robust foundation for high-impact use cases, including patient-level costing, Accident and Emergency (A&E) dashboards, and preventive healthcare analytics.
A key milestone during the year was the strengthening of our Companys position in the UK public sector through significant contract wins, including the UK Home Office ATLAS and Biometrics engagements. The government services segment continued to demonstrate strong client confidence, supported by multiple renewals and extensions, including AI-led engineering and modernisation engagement focused on enhancing efficiency, automation, and end-to-end digital transformation. The enterprise business also maintained strong momentum, driven by growing demand for digital transformation initiatives among both public- and private-sector clients.
The Financial Services sector gained strong momentum during FY26, driven by increasing investments in technology modernisation, regulatory transformation, and data-led initiatives. Growth was supported by a GBP 15 million engagement with the Financial Conduct Authority (FCA), a USD 20 million account win, and strengthened capabilities across the Oracle and Salesforce ecosystems. These achievements enhanced our Companys position in delivering complex digital transformation programmes and established Financial Services as a key growth vertical alongside its established Healthcare and Public Sector businesses.
Key Highlights
• Established the UKs first AI Centre of Excellence for a global financial services organisation, defining enterprise AI strategy, roadmap, use cases, AI agent framework, and operating model to accelerate organisation-wide AI adoption.
• Delivered long-term transformation programmes for UK central government agencies supporting national immigration, asylum, and border management systems, strengthening biometrics platforms, and introducing AI-enabled DevSecOps for critical public services.
• Modernised national biometrics platforms for UK government agencies using Agile delivery, AI-driven DevSecOps, and managed services, ensuring scalability, security, and continuous improvement.
• Delivered national-scale healthcare transformation programmes for UK healthcare authorities, including digital prevention, vaccination systems, cancer screening platforms, and population health data infrastructure powered by AI analytics.
• Implemented Customer Relationship Management (CRM), CRM Dynamics, and Salesforce-based regulatory platforms for UK healthcare and public sector organisations, improving citizen engagement, compliance tracking, and service delivery efficiency.
• Modernised over 80 legacy applications for a UK EdTech organisation using AI-enabled reverse and forward engineering, accelerating SaaS transition and improving operational efficiency.
• Supported UK central banking institutions in modernising data and analytics ecosystems for monetary policy support, enabling scalable, automated, and lineage-driven data platforms with advanced visualisation capabilities.
• Enhanced UK financial regulatory and digital delivery platforms through modern engineering and AI-assisted DevOps, improving compliance, scalability, and operational efficiency.
• Delivered enterprise ERP and EPM modernisation programmes across European and multinational organisations, enabling integrated financial planning, budgeting, reporting, and decision-making through Oracle Cloud applications.
• Enabled the modernisation of logistics and port operations for European multi-entity organisations, streamlining enterprise processes and improving financial agility.
• Consolidated enterprise systems for European energy, manufacturing, and industrial logistics organisations by unifying 30+ siloed systems into integrated Oracle-based platforms, improving cross-functional collaboration and visibility.
North America
The North America business delivered a mixed performance during the year, influenced by macroeconomic uncertainty, delayed discretionary spending, and timing shifts in large transformation programmes. However, underlying demand remained strong, particularly in AI-led engineering, automation, and cloud modernisation, which continue to shape client priorities across key industries.
The region recorded healthy growth in order bookings, supported by increased client engagement in AI-led transformation initiatives, with strong traction in testing, automation, data modernisation, and enterprise application services. Several small and mid-sized AI proof-of-concept engagements were also initiated across Oracle and Salesforce ecosystems, reflecting growing confidence in Masteks capabilities and solution approach.
During the year, our Company further strengthened its capabilities across Healthcare, Life Sciences, and Financial Services by enhancing its expertise in CRM, automation, and AI-driven transformation solutions. Strategic leadership additions also sharpened execution focus and improved delivery alignment, enabling the organisation to effectively address growing demand for integrated, AI-led business transformation programmes.
Healthcare and retail remained the key focus sectors, with continued expansion of existing client relationships through cross-service offerings in data, customer experience, and application modernisation. Leadership and capability enhancements, including new leadership onboarding and strengthening of Salesforce and data teams, were completed to improve execution and support recovery. Despite near-term volatility, the North America deal pipeline remains robust, with a healthy order book in AI-led transformation expected to drive future growth.
Salesforce continued to play a pivotal role in helping clients maximise value from their existing technology investments while expanding adoption across the broader Salesforce ecosystem. Strong cross-sell momentum, particularly in the North America market, drove increased uptake of data, customer experience, analytics, and AI-enabled solutions, resulting in deeper client relationships and a more diversified opportunity pipeline.
Business Performance
Masteks North America business in FY26 underwent a strategic transformation, positioning the region for stronger, more sustainable growth. While reported revenues declined during the year, the business remained focused on a strong transformation agenda, including a renewed leadership structure, realigned teams, and a sharpened go-to-market strategy aimed at strengthening long-term growth prospects. The business is now more focused on priority verticals, including healthcare & life sciences, financial services, and retail, with an increased emphasis on deeper client relationships and outcome-based engagements.
The year also saw improving underlying demand trends, with sequential growth in the order book in the latter part of FY26 and a strengthening pipeline heading into FY27. The region is witnessing growing traction in AI-led opportunities, covering both technology enablement and emerging business use cases, which is expected to enhance the quality and mix of future revenue streams.
While profitability was temporarily affected by transition-related factors and wage adjustments, operational discipline and productivity initiatives helped maintain overall stability at the group level. Supported by a stronger pipeline, a sharper focus on execution, and growing demand for AI-led solutions, the North America business is well-positioned to resume growth in FY27.
Key Highlights
• Secured large-scale digital transformation and managed services engagements across the healthcare, life sciences, automotive, education, energy, SaaS, and technology sectors, leveraging Salesforce, Oracle Cloud, AI-led platforms, and cloud-native architectures to drive enterprise modernisation and operational efficiency.
• Delivered a US Federal healthcare transformation by implementing a unified patient data platform, consolidating records across states into a single system. The Salesforce and AI-enabled solution facilitated real-time access to patient information, improved continuity of care, and strengthened national healthcare delivery outcomes.
• Implemented Oracle Cloud Applications for a leading US healthcare provider managing Medicare Advantage, pharmacy, and rehabilitation services. Secured a strategic Oracle ERP Cloud transformation engagement covering 26 legal entities. The engagement modernised finance, claims, and planning functions through Adopt AI, improving operational efficiency and decision-making.
• Migrated legacy student systems for a US academic institution to Salesforce Agentforce-based platforms, enabling scalable, compliant, and responsive academic workflows.
• Delivered enterprise modernisation programmes for a Fortune 500 automotive and recreational vehicle ecosystem covering customer service transformation, DevOps modernisation, warehouse operations, and Oracle WMS implementation.
• Built AI-driven legacy modernisation solutions for a US digital health organisation using bespoke AI agents, achieving significant efficiency improvement and cost optimisation.
• Scaled an Agentic AI-powered data quality platform for a global clinical research and healthcare organisation, strengthening data reliability, governance, and enterprise-wide decision-making.
• Delivered intelligent support transformation for a global pharmaceutical research services provider, enabling AI-driven self-optimising systems that improved HR efficiency, issue resolution speed, and employee experience.
• Executed enterprise-wide data, automation, and AI transformation initiatives for SaaS and technology enterprises, improving scalability, system performance, and operational agility.
• Modernised enterprise systems for energy storage and logistics organisations by consolidating siloed platforms into integrated Oracle and AI-powered architectures, enabling end-to-end operational visibility.
ASIA PACIFIC, MIDDLE EAST, AND AFRICA (AMEA)
The AMEA region followed a disciplined, focused approach during FY26, with an emphasis on building a stronger, more sustainable business. Our efforts were directed toward improving the quality of growth by prioritising higher-value opportunities, enhancing profitability, and strengthening long-term business stability. While the region did not record growth during the year, the strategic initiatives undertaken have strengthened capabilities and laid a strong foundation for future expansion. As part of this effort, our Company streamlined its client portfolio by reducing the number of smaller, non-strategic accounts and focusing more on key customers. This resulted in a reduction in active clients to 398 on a consolidated basis in FY26, down from 466 in FY25.
Oracle Health continued to emerge as a significant growth opportunity across AMEA regions, supported by increasing demand for integrated healthcare platforms. The acquisition of Cerner has further expanded opportunities in areas such as electronic health records, integrated care systems, and healthcare data platforms, where Mastek has continued to build strong domain expertise and differentiated capabilities.
Business Performance
The AMEA business continued to focus on disciplined and profitable growth, anchored by healthcare and Oracle-led transformation programmes. Healthcare remained the primary growth driver, supported by strong demand for digital health platforms, electronic health records, and AI-enabled healthcare analytics. During the year, the region secured a healthcare transformation engagement worth over USD 7 million, reflecting strong client confidence in Masteks capabilities.
The planned realignment was undertaken to improve long-term performance, including exiting selected low-margin engagements. While this led to a temporary moderation in revenue, it improved the quality of overall revenue and strengthened business fundamentals. Operations remained stable despite timing delays in certain programmes and geopolitical uncertainties in parts of the Middle East, with no disruption to client delivery or workforce continuity.
The growth prospects remain strong, particularly in Oracle health-led opportunities across Asia Pacific and AMEA, driven by increasing demand for electronic health records and integrated healthcare solutions. Capability was further strengthened with the addition of an experienced Cerner specialist, enhancing healthcare delivery. Demand for AI-led transformation continues to rise, while application development and data services provide steady support. Operational performance remained stable, providing a foundation for sustainable, quality-led growth.
Key Highlights
• Delivered strategic enterprise transformation programmes across government, healthcare, financial services, insurance, logistics, manufacturing, and energy sectors using Oracle Cloud, Salesforce, and AI-powered platforms.
• Implemented a unified financial management platform for a Southeast Asian government-backed insurer using Oracle and AI, enabling real-time financial visibility, automated claims processing, and improved regulatory compliance.
• Delivered enterprise-wide digital transformation for Middle Eastern government-funded healthcare systems, integrating clinical, financial, workforce, and regulatory platforms into a unified Oracle-based ecosystem with AI-enabled governance.
• Implemented enterprise integration programmes for large Middle Eastern conglomerates across multiple legal entities, enabling unified financials, real-time reporting, and automated operations through Adopt AI-powered enterprise suites.
• Modernised port operations and logistics platforms for multi-entity organisations, streamlining enterprise processes and enabling future-ready operational frameworks.
• Enabled enterprise transformation for energy, storage, and industrial logistics organisations by consolidating siloed systems into integrated Oracle-based platforms, improving operational visibility.
• Delivered managed services across HR, finance, and enterprise applications for global organisations, improving stability, governance, and operational efficiency.
• Supported global insurance and healthcare organisations with AI-enabled enterprise platforms, enhancing claims processing, regulatory compliance, workforce management, and financial transparency.
Update on Change in Board of Directors/Management
There have been no changes in the composition of the Board of Directors of Mastek Limited during the year under review.
The senior leadership was strengthened with the appointment of Mr. Sourabh Mukherjee as President, the Americas. With over two decades of global IT services experience across healthcare & life sciences, manufacturing, retail, and supply chain, he brings strong capabilities in digital transformation, cloud, data and analytics, and domain-led solutions. His appointment is expected to support accelerated growth in the Americas, deepen client engagement, and sharpen our Companys focus on high-value, industry-specific digital and AI-led opportunities.
Our Company also announced a leadership transition with the appointment of Mr. Vimal Dangri as Chief Human Resources Officer & General Counsel (CHRO&GC), effective September 24, 2025. A long-standing member of the Executive Leadership Team with over 24 years of experience covering legal advisory, risk management, compliance, governance, organisational change, and process excellence, he previously served as General Counsel & Chief Risk Officer. In his expanded role, he continues to oversee legal, risk, compliance, ethics, corporate governance, quality, and sustainability, while also leading initiatives focused on cost efficiency and organisational simplification.
Further, our Company appointed Mr. Deepak Kedia as Chief Financial Officer (CFO), effective November 11, 2025, responsible for leading the global finance organisation and reporting to the Chief Executive Officer. With over two decades of international finance leadership experience at Motorola Solutions, Hewlett-Packard, NTT Ltd., Wipro, and private equity–backed technology companies, he brings deep expertise in strategic value creation, investor relations, capital allocation, P&L management, and digital finance transformation. A Chartered Accountant, CPA (Australia), and alumnus of the University of Cambridges Sustainable Finance programme, he has led global finance teams and driven transformation across multiple geographies. His appointment is expected to further strengthen our Companys focus on disciplined growth, operational excellence, and AI-led value creation.
During the year, the Board of Mastek Inc was strengthened with the appointments of Ms. Elizabeth Finke as a Director, effective April 1, 2025, and Mr. Marc Berson as a Director, effective January 1, 2026.
Ms. Elizabeth Finke brings a wealth of expertise in consulting, sales, and customer experience, gained through a distinguished career in senior leadership roles at Oracle and Accenture. Beyond the boardroom, Beth is a thought leader, keynote speaker, and passionate about innovation that delivers real business outcomes.
Mr. Marc Berson, a global technology leader and currently Head of Google Internal Systems (CIO), brings extensive experience in leading large-scale enterprise transformations across organisations such as Gilead Sciences, HP, IBM, and Philips. His induction underscores our continued focus on strengthening strategic oversight, particularly in the North American market, while advancing its AI-led growth agenda. His expertise in digital innovation, enterprise systems, and transformation is expected to further support our long-term strategy and value-creation objectives.
People Strength
As of March 31, 2026, the Groups total workforce stood at 4,730, down from 5,028 employees as of March 31, 2025.
Financial Overview
We at Mastek are pleased to share the key highlights of our consolidated and standalone financial results for the year ended March 31, 2026, along with a comparison with the previous year, summarised below.
| CONSOLIDATED | STANDALONE | |||||
Particulars |
FY26 | FY25 | Y-o-Y (%) | FY26 | FY25* | Y-o-Y (%) |
| Revenue From Operation | 369,875 | 345,523 | 7% | 91,756 | 93,909 | -2% |
| Employee Expense | 197,260 | 185,903 | 6.1% | 62,540 | 64,732 | -3% |
| Other Expense | 114,059 | 104,975 | 8.6% | 13,519 | 12,959 | 4% |
| Operating EBITDA | 58,556 | 54,645 | 7.1% | 15,697 | 16,218 | -3% |
| Other Income | 7,041 | 2,228 | 216% | 13,545 | 8,438 | 61% |
Total EBITDA |
65,597 | 56,873 | 15.3% | 29,242 | 24,656 | 19% |
| Profit Before Tax | 52,122 | 45,916 | 13.5% | 23,163 | 17,920 | 29% |
| Profit After Tax | 40,400 | 37,593 | 7.4% | 20,244 | 14,034 | 44% |
* Restated numbers for FY25 standalone financials.
Note: Pursuant to the NCLT-approved Scheme of Amalgamation, Mastek Enterprise Solutions Private Limited was merged with Mastek Limited (appointed date: April 01, 2024; effective date: May 31, 2025). The transaction has been accounted for as a common control combination under Ind AS 103, with financials restated from April 01, 2024. There is no impact on the consolidated financial results.
Standalone
On a standalone basis, we maintained a stable performance during the year, with revenue at INR 91,756 lakh. We managed costs carefully, with employee expenses reducing by 3% while other expenses increased slightly by 4%. Operating EBITDA stood at INR 15,697 lakh, declining by 3% Y-o-Y. Other income increased by 61% Y-o-Y to INR 13,545 lakh in FY26, compared with INR 8,438 lakh in FY25. Total EBITDA stood at INR 29,242 lakh in FY26, compared with INR 24,656 lakh in FY25, increasing by 19%. Profit before tax grew by 29% to INR 23,163 lakh and profit after tax saw a strong increase of 44% to INR 20,244 lakh, reflecting better efficiency and improved profitability.
Consolidated
On a consolidated basis, we delivered a strong performance in FY26, with revenue growing by 7% to INR 369,875 lakh. This was supported by steady demand across our key markets and services. Employee costs increased by 6.1% Y-o-Y, while other expenses rose by 8.6% due to higher business activity. Operating EBITDA grew by 7.1% to INR 58,556 lakh. The increase in other income supported a 15.3% growth in total EBITDA to INR 65,597 lakh. As a result, profit before tax advanced by 13.5% to INR 52,122 lakh and profit after tax grew by 7.4% to INR 40,400 lakh.
The Board of Directors has recommended a final dividend of 320%, equivalent to INR 16 per equity share of face value INR 5, for the FY26, subject to shareholder approval at the ensuing 44th Annual General Meeting. The total dividend for FY26, including the interim dividend of INR 8 per share, amounted to INR 24 per share, equivalent to 480% of the face value, compared to INR 23 per share in FY25.
Profitability
We reported a consolidated net profit of INR 40,400 lakh for the financial year ended March 31, 2026, compared to INR 37,593 lakh in the previous financial year ended March 31, 2025. We achieved 7.4% Y-o-Y profit growth, driven by improved operational performance and strong business momentum.
Profit for the year increased by 7.4% Y-o-Y, driven by higher revenues, improved cost efficiencies due to AI, and optimal resource utilisation resulting in higher revenue per FTE and benefits due currency tailwinds, which was partially offset by an exceptional loss due to the impact of changes in the Labour Code announced in November 2025.
Balance Sheet
Assets
A. Property, Plant, and Machinery
We reported tangible assets (including investment property) of INR 7,118 lakh as of March 31, 2026, compared to INR 8,223 lakh in the previous year. During the year, our Company recorded gross additions of INR 1,461 lakh and deletions of INR 2,688 lakh, mainly related to computers, furniture, fixtures, and buildings. We recognised depreciation expenses of INR 7,261 lakh during the year, which impacted the overall asset value We also recorded a net foreign exchange translation loss of INR 285 lakh during the period.
B. Other Intangible Assets and Goodwill
We reported intangible assets and goodwill of INR 186,729 lakh as of March 31, 2026, compared to INR 173,568 lakh in the previous year.
We recorded gross additions of INR 1,346 lakh and deletions of INR 1,412 lakh during the year, primarily related to computer software, customer contracts, andcustomer relationships.
We recognised an amortisation charge of INR 4,485 lakh during the year.
We also recorded a net impact of INR 775 lakh arising from foreign exchange translation and other adjustments.
Non-Current Financial Assets
A. Investments
Our non-current investments include holdings in venture capital funds. As of March 31, our investment in ventures was negligible, compared to INR 1,737 lakh in the previous year. In accordance with Ind AS 109, we remeasure financial assets classified under Fair Value through Other Comprehensive Income (FVTOCI) at each reporting date, with any changes recognised in Other Comprehensive Income (OCI).
B. Other Financial Assets
Our other non-current financial assets, including loans and bank deposits, stood at INR 1,229 lakh as of March 31, 2026, compared to INR 2,052 lakh in the previous year. We recorded a decline during the year, mainly due to decrease in in foreign exchange forward contract and security deposits.
C. Other Non-Current Assets
Our other non-current assets stood at INR 216 lakh as of March 31, 2026, compared to INR 155 lakh as of March 31, 2025.
Income Tax Assets and Liabilities
Our current income tax assets stood at INR 1,479 lakh as of March 31, 2026, compared to INR 2,207 lakh in the previous year, primarily representing domestic corporate tax receivables. Our current income tax liabilities decreased to INR 3,081 lakh from INR 4,037 lakh in the previous year, mainly due to estimated income tax obligations in overseas jurisdictions.
Deferred Tax Assets and Liabilities
Our deferred tax assets stood at INR 22,510 lakh as of March 31, 2026, compared to INR 15,463 lakh in the previous year.
Our deferred tax liabilities increased to INR 1,572 lakh as of March 31, 2026, from INR 1,339 lakh in the previous year. These liabilities primarily relate to undistributed profits of subsidiaries, amortisation of goodwill, fair valuation of investments, and adjustments arising from cash flow hedge accounting.
Current Financial Assets
Investments
Our investments stood at INR 23,396 lakh as of March 31, 2026, compared to INR 16,066 lakh in the previous year. These investments primarily consist of quoted mutual fund units. In line with Ind AS requirements, financial assets and liabilities classified under fair value through profit and loss (FVTPL) are remeasured at each reporting date, with any changes in fair value recognised in the statement of profit and loss.
Trade Receivables
Our trade receivables stood at INR 57,984 lakh as of March 31, 2026, compared to INR 52,455 lakh in the previous year. We also improved our Days Sales Outstanding (DSO) to 73 days, down from 83 days in the prior year, reflecting improved collection efficiency.
Cash and Cash Equivalents
Our cash and bank balances stood at INR 70,433 lakh as of March 31, 2026, reflecting a significant increase compared to INR 46,076 lakh reported in the previous year.
Other Current Financial Assets
Our other current financial assets stood at INR 1,643 lakh as of March 31, 2026, compared to INR 1,594 lakh in the prior year. We recorded an increase during the year, primarily due to higher advances to employees and security deposits.
Other Current Assets
Our other current assets stood at INR 14,720 lakh as of March 31, 2026, compared to INR 17,329 lakh in the previous year. We recorded a decrease during the year, mainly due to lower advances to suppliers, Research and Development (R&D) credit receivables, and input tax credit.
Equity and Liabilities
Total Equity
Our equity share capital consists of a single class of shares with a face value of INR 5 each. As of March 31, 2026, our issued, subscribed and paid-up share capital increased to INR 1,550 lakh from INR 1,547 lakh in the previous year.
Non-Current Financial Liabilities
Borrowings
Our non-current borrowings declined to INR 22,548 lakh as of March 31, 2026, from INR 37,923 lakh in the previous year.
Lease Liabilities
As of March 31, 2026, lease liabilities stood at INR 990 lakh, down from INR 1,639 lakh in the previous year.
Other Financial Liabilities
As of March 31, 2026, other financial liabilities stood at INR 2,182 lakh, significantly higher than INR 32 lakh in the previous year. The increase was mainly driven by an increase in foreign exchange forward contracts.
Provisions
As of March 31, 2026, long-term provisions stood at INR 6,375 lakh, compared to INR 5,176 lakh in the previous year. The increase was mainly driven by higher employee benefit obligations resulting from the new labour code.
Current Financial Liabilities
Borrowings
As of March 31, 2026, current borrowings stood at INR 19,591 lakh, compared to INR 17,594 lakh in the previous year.
Lease Liabilities
As of March 31, 2026, lease liabilities stood at INR 697 lakh, compared to INR 1,157 lakh in the previous year.
Trade Payables
As of March 31, 2026, trade payables stood at INR 20,646 lakh, compared to INR 21,056 lakh in the previous year.
Other Current Financial Liabilities
As of March 31, 2026, other current financial liabilities stood at INR 22,212 lakh, compared to INR 18,050 lakh in the previous year.
Other Current Liabilities
As of March 31, 2026, other current liabilities stood at INR 13,690 lakh, compared to INR 12,540 lakh in the previous year. The increase was primarily due to higher statutory dues payable.
Contract Liabilities
As of March 31, 2026, contract liabilities stood at INR 12,588 lakh, up from INR 10,918 lakh in the previous year.
Provisions
As of March 31, 2026, short-term provisions stood at INR 5,526 lakh, compared to INR 3,950 lakh in the previous year. The increase was primarily driven by higher employee benefit provisions resulting from the new labour code.
Significant Change in Key Financial Ratios
In compliance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, we are required to disclose significant changes, defined as variations of 25% or more, in key sector-specific financial ratios compared to the immediately preceding financial year. For this purpose, Mastek has identified the following key financial ratios:
Particulars |
FY26 | FY25 |
| Revenue Growth (%) * | 7.0 | 13.1 |
| Interest coverage ratio ^ | 16.0 | 11.2 |
| Current Ratio | 2.2 | 2.0 |
| Debt-Equity Ratio # | 0.14 | 0.23 |
| Debtors turnover (in days) | 73 | 83 |
| Operating margin (%) | 15.8 | 15.8 |
| Net profit margin (%) | 10.7 | 10.8 |
| EPS Basic (INR) | 130.5 | 121.8 |
| Return on Net Worth (%) | 14.8 | 16.5 |
*
FY26 was impacted by macroeconomic challenges, slower decision-making cycles, and reduced discretionary spending, particularly across key international markets.^
Improved due to lower finance cost during the period as well as improvement in profitability margins #Improved due to repayment of debt obligationsBusiness Outlook
Masteks business outlook remains positive, supported by a strong order backlog and continued expansion in key markets such as North America, the UK, and AMEA, as well as rising demand for cloud, data, AI, and digital engineering services. At the same time, our Company is focusing on improving efficiency through platform- and GenAI-led initiatives. Our order backlog in INR terms grew by 24.4% in FY26, reflecting sustained demand for digital transformation, data modernisation, and AI-led solutions. We continue to see strong traction in our AI-led services, supported by a growing client base and increasing adoption across key engagements. These trends strengthen our confidence in long-term growth, particularly across healthcare, enterprise data modernisation, and cloud transformation.
We remain focused on our long-term strategic priorities, supported by strong client relationships, a diversified service portfolio, and continued investment in capabilities that deliver measurable value. Our emphasis is on securing future engagements, enhancing delivery excellence, and leveraging emerging technologies to strengthen our global competitive advantage. Looking ahead, we expect to benefit from our continued investments in digital infrastructure, AI integration, and cloud solutions. Even as market conditions evolve, our disciplined execution, innovation-driven offerings, and expanding client base position us to capture emerging opportunities and sustain growth momentum in the coming period.
While there are risks from macroeconomic conditions, currency movements, and competition, Mastek is managing these risks through market diversification, outcome-based contracts, and disciplined cost control.
Risk Management
Mastek has a robust risk management structure that systematically evaluates business activities to identify, assess, and mitigate both internal and external risks. This structure is supported by well-defined processes, policies, and oversight mechanisms at the Board and senior management levels that promote a culture rooted in ethical values and integrity. Such a culture plays an important role in strengthening our Companys overall risk mitigation efforts.
Our comprehensive risk management framework, supported by various policies, enables effective management of risks associated with delivering products and services to clients, while remaining aligned with our strategic business objectives. We encourage open dialogue and transparency in risk-related decision-making across the organisation, encouraging a proactive, collaborative approach to risk management. This framework, approved by the Boards Risk Management and Governance Committee, is consistently implemented across teams throughout our Company.
Human Resource
Our organisation places strong emphasis on building a performance-driven workforce while prioritising the health and well-being of employees and their families. To support this objective, we have implemented a comprehensive set of policies and benefits to enhance employee engagement and overall well-being. We continue to drive a collaborative, learning-oriented and growth-focused work environment that empowers employees to realise their full potential, while promoting an open and transparent workplace culture where employee experiences, feedback, and suggestions are valued and thoughtfully integrated into our people strategies. We also encourage regular engagement through various initiatives, including structured interactions between employees and executive leadership, as well as organisation-wide and function-specific forums such as Annual Meets and frequent functional connects within a geography, providing Mastekeers with ongoing opportunities to connect with management and actively contribute to shaping the workplace culture. Our total workforce stood at 4,730 employees, of which 3,195 were based offshore in India, while the remaining employees were utilised across various onsite locations.
Environment-Social-Governance (ESG)
Our Company achieved a sustainability score of 82/100 in S&P Global Corporate Sustainability Assessment 2025, placing us among top 15% of the IT industry globally and within top 10% in India, reflecting our strong commitment to responsible business practices and robust performance across environmental, social, and governance (ESG) parameters. During the year, we further strengthened our ESG objectives through initiatives focused on environmental stewardship, social responsibility, and strong governance practices. We actively manage risks, such as energy disruptions and cost pressures, by improving energy efficiency and adopting green technologies across our operations. We have reduced our carbon emissions through better energy optimisation, increased use of remote collaboration, and sustainable practices. We also undertake global tree-planting initiatives and efforts to conserve water and reduce e-waste, thereby strengthening our environmental performance. On the social side, we continue to focus on our people and communities by promoting employee well-being, diversity, equity, and inclusion. Through our foundation, we support large-scale skilling and education initiatives that positively impact communities and help improve access to opportunities. From a governance perspective, we maintain strong ethical standards, compliance, and transparent reporting, which support our credibility and global recognition in sustainability. Our ESG efforts help us stay resilient in a changing global environment while creating sustainable long-term value for all stakeholders.
Internal Control System
Internal controls are fundamental to strong governance, providing a structured balance between operational flexibility and effective oversight. We have implemented a comprehensive framework to continuously assess the adequacy, effectiveness, and efficiency of our corporate, financial, and operational controls. We are committed to upholding a strong internal control framework that aligns with the scale and complexity of our operations, ensuring compliance with internal policies, applicable laws, and regulatory requirements, while protecting our Companys resources and assets. We have also incorporated a remote working model into our business continuity strategy, enabling employees to work from home or other remote locations when appropriate. Our processes are designed to support secure and efficient remote operations while maintaining the integrity of internal controls over financial reporting.
We operate across multiple geographies with a diverse network of employees, suppliers and partners, making strong internal controls and scalable processes essential. To support this, our Company has established robust Internal Financial Controls backed by clearly defined policies and procedures. These controls ensure efficient business operations, safeguard assets, prevent fraud, maintain accurate financial records, and enable timely financial reporting and disclosures.
Internal Audit
We maintain a strong Internal Audit framework to support effective governance, risk management, and internal controls across our organisation. Under the supervision of the Audit Committee, an independent internal audit firm conducts risk-based audits across our domestic and international operations. These audits are supplemented by reviews conducted by our internal audit team, which assess key business processes, evaluate the effectiveness of controls and compliance mechanisms, and help identify and address risks in areas such as finance, operations, technology, asset protection, and regulatory compliance.
Our Internal Audit programme follows a structured risk-based approach, with its scope and priorities regularly reviewed by the Audit Committee to ensure alignment with our business objectives, risk profile, and governance requirements. We continuously strengthen audit coverage to address emerging risks and evolving business needs, including integrating newly acquired entities into our governance and control framework. We also engage independent subject-matter experts whenever specialised assessments and recommendations are required.
In addition, we regularly evaluate the effectiveness of our ERP systems, operational processes, and corporate controls to further strengthen our overall control environment. Audit findings and recommendations are reviewed on an ongoing basis, while management remains responsible for implementing corrective actions and enhancing the effectiveness of controls. The Audit Committee provides independent oversight through periodic reviews of audit observations, risk assessments, and remediation progress. To maintain independence and objectivity, our Internal Auditors report directly to the Audit Committee.
Whistleblowing
We maintain a robust Whistleblower Policy that encourages employees, partners, and stakeholders to report unethical conduct, fraud, or violations of company policies without fear of retaliation. The mechanism ensures confidentiality, impartial investigation, and appropriate corrective action where necessary. Concerns can be reported through multiple secure channels, with oversight from the Audit Committee to ensure transparency and uphold high standards of corporate governance.
Cautionary Statement
The Management Discussion and Analysis Report contain statements relating to our Companys objectives, projections, estimates, and expectations that may be considered forward-looking statements under applicable laws and regulations. These statements are based on Managements current beliefs and assumptions regarding future events. However, they are subject to various risks and uncertainties that could cause actual results to differ materially. Such risks include changes in general economic and business conditions, shifts in business strategy, fluctuations in interest rates, inflation or deflation, foreign exchange movements, competitive pressures and changes in governmental regulations, tax laws, or other statutory requirements. The Management does not undertake any obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.
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1860-267-3000 / 7039-050-000
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+91 9892691696
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