Mastek Ltd Management Discussions

Macroeconomic Overview

Global Economy

The global economy in CY25 is navigating a period of transition, characterised by a delicate balance of moderate growth and ongoing challenges shaped by geopolitical shifts, technological advancements and changing consumer dynamics. Global GDP followed a path of steady but moderate growth, rising by 3.5% in CY23 and easing slightly to 2.8% in CY24. This tempered expansion reflects persistent challenges such as geopolitical instability, trade disruptions and demographic constraints. Advanced economies grew at a modest pace of 1.8% year on year (Y-o-Y), while Emerging Market and Developing Economies

(EMDEs) showed stronger momentum, expanding by 4.3% in CY24. Chinas recovery gathered limited pace, restrained by ongoing weakness in the property market and muted external demand. The United States remained resilient, buoyed by a strong labour market and sustained consumer spending. In contrast, the Eurozone continued to struggle with structural inefficiencies, particularly in energy-intensive sectors. India and Southeast Asia, meanwhile, emerged as key drivers of global growth, powered by robust domestic demand, rapid digital adoption and significant infrastructure investments.

Global Economy Growth (%)

World Output	Estimate		Projections
(Real GDP, Annual % change)	CY23	CY24	CY26
Global GDP	3.5	3.3	3.0
Advanced Economies	1.7	1.8	1.5
United States	2.5	2.8	1.7
Euro Area	0.4	0.9	1.2
Emerging Markets and Developing Economies	4.7	4.3	3.9
Emerging and Developing Asia	6.1	5.3	4.6
China	5.4	5.0	4.0
India	9.2	6.5	6.3

Source: International Monetary Fund April 2025 Report

Outlook

The global economy is expected to grow at a steady rate of 2.8% in CY25 and 3.0% in CY26, supported by stable performance across advanced and emerging markets. Growth in advanced economies is projected to remain modest, with forecasts of 1.4% in CY25 and 1.5% in CY26, driven by varying levels of domestic demand and different policy approaches. In contrast, emerging markets, including China and India, are anticipated to maintain relatively strong growth momentum, with projected growth of 3.7% in CY25 and 3.9% in CY26, despite ongoing global uncertainties. Global trade tensions escalated sharply in April 2025, following the implementation of sweeping new U.S. tariffs on over 90 countries. In response, subsequent trade actions have diverged along different paths with increasing protectionism and retaliatory tariffs followed by renewed discussions on tariffs.

The potential tariff could disrupt global trade, fuel inflation and dampen economic growth. Rising import costs may lead to higher consumer prices across regions. Despite these challenges, economies are expected to remain resilient, leveraging technological advancements and executing strategic responses to maintain stability.

Source: https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025

https://www.investors.com/news/economy/us-china-trade-deal-

rare-earths-55-percent-tariff-sp-500/

Indian Economy

India continues to be one of the fastest-growing major economies, driven by its demographic advantages, strong domestic demand, and ongoing structural reforms. The country is playing an increasingly significant role in the global economy, supported by healthy Goods and Service Tax (GST) collections and sustained growth in key sectors such as manufacturing, infrastructure, and technology. However, amid heightened global uncertainties, Indias GDP growth moderated to 6.5% in FY25, down from 9.2% in FY24, according to the Ministry of Statistics and Programme Implementation (MOSPI). This slowdown is primarily due to factors like a dip in manufacturing activity, persistent food inflation, weaker urban consumption, limited job creation, a widening trade deficit and subdued private investment. Despite these challenges, India has maintained a resilient growth trajectory, supported by the strong performance of its services sector, increased public infrastructure investment and government initiatives focused on digital transformation, financial inclusion and improving the business environment.

Source: *MOSPI Report dated May 30, 2025, E=Estimate, P= Projected

#Reserve Bank of India (RBI) Monetary Policy Committee (MPC) report dated June 6, 2025

Inflation remained a persistent challenge throughout FY25 fuelled by ongoing global supply chain disruptions and fluctuating commodity prices. CPI inflation averaged 4.6% in FY25, easing from 5.4% in the previous year. In response, the Reserve Bank of India (RBI) lowered interest rates by a cumulative 100 basis points over three policy reviews beginning in February 2025, bringing the repo rate to 5.5% by June. Despite external pressures, Indias medium-term growth outlook remains positive, underpinned by proactive policy measures, a growing middle class and strengthening domestic economic fundamentals.

Outlook

Despite ongoing geopolitical tensions and global market volatility, Indias economic outlook remains optimistic, with GDP growth anticipated to outpace the global average.

Strategic government initiatives, including the Production- Linked Incentive (PLI) scheme and increased investments in infrastructure, renewable energy and digital transformation, are expected to drive long-term economic growth and boost Indias global competitiveness. These factors position India to become the worlds third-largest economy by FY28, with a projected GDP of USD 5.7 trillion. The Indian economy is projected to grow by 6.5% Y-o-Y in FY26, maintaining the pace expected in FY25. On the other hand, recent tariffs have had a mixed impact creating challenges for export-oriented sectors while benefitting select domestic industries through reduced import competition. Overall, investor sentiment remains resilient. Continued policy reforms and accelerated digitalisation are enhancing transparency and operational efficiency, positioning the economy to be more structured, adaptable and future-ready.

Source: https://pib.gov.in/PressReleaseIframePage.

aspx?PRID=2120509#:~:text=The%20Monetary%20Policy%20

Committee%20

https://pib.gov.in/PressReleasePage.aspx?PRID=2097921

https://pib.gov.in/PressReleasePage.aspx?PRID=2090875

Industry Overview

Global IT Industry

The global Information Technology (IT) industry continued to evolve at a rapid pace, driven by ongoing technological advancements and shifting market demands across various sectors. The global IT services market was valued at around USD 1.50 trillion in CY24 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.4% from CY25 to CY30. This growth will be driven by rapid digital transformation, cloud computing adoption and increased focus on cybersecurity, innovation and automation. Key factors include the rise of the Internet of Things (IoT), data analytics, artificial intelligence (AI) and machine learning (ML), alongside the shift to remote and hybrid work models, which boost demand for flexible and scalable IT solutions. Cloud migration fuels the need for services to manage and secure these environments amid escalating cyber threats. In CY24, AI and machine learning led the IT services market in revenue, powered by abundant data and advanced computing, enabling applications like fraud detection and predictive maintenance. Overall, the IT services industry is developing rapidly, playing a critical role in supporting business agility, resilience and growth.

Rising IT spending, driven by the adoption of software-as-a- service (SaaS) and cloud-based solutions, is fuelling market demand. These services boost business process efficiency and allow firms to focus on core operations without managing IT infrastructure. Companies leverage IT services for everything from employee record management to complex tasks like supply chain and operations oversight.

Generative AI (GenAI) is quickly changing the tech world, sparking innovation across many industries and changing how businesses use automation, creativity and data to make decisions. However, GenAI is now entering what is known as the trough of disillusionment, a stage where expectations start to dip even though investment remains high. In fact, spending on AI-optimised servers is expected to more than double the amount spent on traditional servers in CY25, reaching USD 202 billion. This growth will be mainly driven by IT service providers and large cloud companies (hyperscalers), who will account for over 70% of the increase.

The global IT spending is projected to reach USD 5.62 trillion in CY25, reflecting a 9.8% increase over CY24, according to the latest forecast from Gartner, Inc. Software is driving the highest growth at 23.2%, trailed by data centre systems at 14.2% and devices at 10.4%. IT services are projected to grow by 9%, while communications services will see a modest 3.8% rise. This reflects continued investment in digital transformation and IT infrastructure.

Europes IT spending is expected to reach USD 1.28 trillion in CY25, up 8.7% from CY24. Key segments include software growing 13.2% to USD 288.2 billion, IT services rising 9.2% to USD 489.8 billion and devices increasing 9.3% to USD 146.7 billion. Data centre systems and communications services will see moderate growth, reflecting steady investment across the region.

Europe IT Spending Forecast (in USD million)

	2024 Spending	2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Centre Systems	50,043	11.1	54,410	8.7
Devices	134,239	6.4	146,700	9.3
Software	254,554	11.4	288,163	13.2
IT Services	448,572	6.6	489,767	9.2
Communication Services	292,280	3.0	302,705	3.6
Overall IT	1,179,687	6.8	1,281,744	8.7

Source: Gartner (November 2024)

The U.S. IT spending market is on a steady growth path, rising from USD 1.4 trillion in CY24 to an estimated USD 1.9 trillion by 2033, projecting a CAGR of 3.8% during 2023 to 2033. Much of this growth is being powered by the shift to cloud computing, which gives businesses the flexibility and cost savings they need to modernise. Companies are also embracing digital transformation at a rapid pace, with adoption expected to grow strongly over the next decade. The U.S. IT spending outlook shows a shift from on-premises data centres to cloud and hybrid solutions, with rising investments in software such as ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and HRM (Human Resource Management). Remote and hybrid work models are further fuelling demand for laptops, tablets, and other personal devices.

At the same time, the surge in cyber-attacks is pushing organisations to invest more in protecting their data and systems. Spending patterns vary across industries and regions·finance and tech dominate the Northeast, manufacturing leads the Midwest, while energy and healthcare drive much of the Souths IT growth.

In the Middle East and North Africa (MENA) region, IT spending is projected to reach USD 230.8 billion in CY25, up from USD 215.0 billion in CY24, reflecting a growth of 7.4%. Software is projected to be a leading growth segment in CY25, with an anticipated increase of 13.7%, followed by IT services at 8.9%. Data centre systems, the fastest-growing category, is expected to sustain robust Y-o-Y growth of 14.9%. Although spending on devices and communication services will grow more modestly, at 6.1% and 6.2%, respectively, they continue to play a significant role in shaping the regions evolving IT landscape.

MENA IT Spending Forecast, 2024-2025 (in USD million)

	2024 Spending	2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Centre Systems	5,557	14.9	6,382	14.9
Devices	33,969	13.4	36,052	6.1
Software	17,581	12.3	19,984	13.7
IT Services	25,158	7.5	27,393	8.9
Communication Services	132,688	6.9	140,981	6.2
Overall IT	214,953	8.6	230,792	7.4

Source: Gartner (November 2024)

Outlook

The global IT industry is poised for steady growth in CY25, fuelled by rising demand for digital transformation across sectors. Companies are investing in areas like data centres, software and AI to enhance efficiency, agility and innovation. Artificial intelligence, in particular, is becoming a key enabler of smarter operations and personalised experiences. As organisations deepen their digital capabilities, technology providers are well-positioned to deliver solutions that drive meaningful business outcomes.

At the same time, evolving global tax and regulatory requirements are prompting tech companies to modernise their internal systems, particularly in areas such as enterprise resource planning and data governance. These changes offer an opportunity to strengthen transparency, compliance and resilience. By prioritising trust, reliability and security both internally and in the services they offer, technology companies can not only meet emerging standards but also build stronger relationships with customers, partners and regulators, helping shape a more responsible and innovative digital future.

Source: https://www.imarcgroup.com/united-states-it-spending- market#:~:text=2..USD%201.9%20Trillion%20by%202033

Indian IT Industry

The Indian IT industry has established itself as a global centre for technology and innovation, evidenced by the increasing number of multinational corporations (MNCs) and global capability centres (GCCs). As of FY24, the industry is home to over 1,750 GCCs, highlighting an increasing focus on high-value services and product engineering. According to the latest projections from Gartner, software spending capacity increased from USD 17,904 million in CY24 to USD 20,945 million in CY25, marking a growth of 17.0%. Meanwhile, IT Services spending capacity rose from USD 30,065 million in CY24 to USD 33,503 million in CY25, reflecting a growth of 11.4%. This reflects rising demand for digital transformation, cloud adoption, cybersecurity and data- driven decision-making across sectors. These services play a vital role in supporting business operations, enhancing productivity and safeguarding digital assets. As organisations increasingly rely on technology to drive innovation and competitiveness, IT service providers are enabling them to streamline operations, reduce costs and focus on core business goals. Indias deep talent pool, global delivery capabilities and maturing digital ecosystem position it as a key player in the global IT services landscape.

Artificial Intelligence and automation are rapidly transforming the Indian IT services market by driving efficiency, reducing costs and enhancing personalisation. Technologies like machine learning, natural language processing and robotic process automation (RPA) are being widely adopted to automate repetitive tasks, improve decision-making and elevate customer experiences such as AI- powered chatbots providing 24/7 support. RPA is streamlining back-office operations for many firms, cutting errors and speeding processes. AIs role in cybersecurity is also expanding, offering advanced threat detection and real-time responses to protect sensitive data. As Indian IT companies invest heavily in AI research and development, these technologies are set to further fuel innovation, productivity and competitive advantage across industries.

India IT Spending Forecast, 2023-2025 (in USD million)

	2023 Spending	2023 Growth (%)	2024 Spending	2024 Growth (%)	2025 Spending	2025 Growth (%)
Data Centre Systems	3,818	6.0	4,310	12.9	4,798	11.3
Devices	49,461	1.5	55,907	13.0	63,105	12.9
Software	15,478	11.4	17,904	15.7	20,945	17.0
IT Services	27,630	4.8	30,065	8.8	33,503	11.4
Communications Services	34,019	0.6	35,713	5.0	37,608	5.3
Overall IT	130,406	3.2	143,899	10.3	159,960	11.2

Source: Gartner (November 2024)

Outlook

Indias technology industry is expected to maintain strong momentum over the long term despite the near-term challenges of looming uncertainty related to imposition of the US trade tariffs and macroeconomic headwinds across the key markets of the US and Europe. Key drivers for long-term growth includes Engineering Research & Development and the rapid expansion of Global Capability Centres (GCCs), with Digital Engineering (DE) gaining traction across industries such as BFSI, healthcare and retail. This segment accounted for a large share of major deals, highlighting a broader shift toward high-value services and product engineering. Export revenues are now more evenly split between global multinationals (including GCCs) and Indian service providers. Meanwhile, the number of operational GCCs continues to rise, signalling Indias growing importance as a hub for advanced technological capabilities.

On the domestic front, technology spending outpaced export growth for the second consecutive year, driven by increased investment in enterprise software, cloud adoption and a sharp expansion in data centre capacity. The digital economy now significantly contributes to GDP, with Digital Public Infrastructure emerging as a key enabler of inclusive growth. E-commerce is experiencing robust growth, with gross merchandise value nearing a major milestone. AI adoption is also advancing rapidly, with most initiatives focused on co-creating scalable solutions. A growing number of GenAI pilots are transitioning into full- scale production, as nearly all leading tech firms embed AI, Cloud, Data and GenAI into their core operations.

Source: https://www.gartner.com/en/newsroom/press-releases/2024-

11-12-gartner-forecasts-india-it-spending-to-reach-160-billion-us-dollars-in-2025

https://www.techsciresearch.com/report/india-it-services-market/15425.html

Engineering Research & Development (ER&D)

Overview

Engineering Research & Development (ER&D) lies at the core of digital transformation, fuelling innovation and reshaping how industries operate and how people interact with technology. From AI-driven personal assistants and connected homes to telemedicine and hybrid work models, digital engineering is redefining the fabric of daily life. As the pace of technological change accelerates, organisations are increasingly investing in ER&D to tackle emerging challenges and unlock new growth opportunities. Despite global economic headwinds, global ER&D spending remained resilient at USD 2.21 trillion, underlining its critical role in the innovation economy. The market is projected to reach USD 3 trillion by CY27, growing at a CAGR of 8.4%. Europe led the charge in CY23 with a 9.5% growth in ER&D investment·the highest since CY20· propelled by strong momentum in the aerospace & defence, pharmaceuticals, industrial and automotive sectors. In contrast, North·traditionally the ER&D front runner·witnessed moderated growth amid inflationary pressures and geopolitical uncertainties.

Global Business ER&D Spending (in USD billion)

¦ DIGITAL ENGG. SPEND

¦ LEGACY ENGG. SPEND All figures in USD Bn.

The growing investment in Engineering Research &

Development (ER&D) underscores the pivotal role of Artificial Intelligence (AI) in driving innovation, operational efficiency and transformative change across industries. China alone accounted for over 10% of global ER&D spending, with nearly half directed toward high-impact sectors such as telecommunications, semiconductors and automotive. Across the Asia-Pacific (APAC) region, enterprises are prioritising advanced digital technologies including AI/ML, robotics, additive manufacturing, automation, 5G and smart manufacturing to boost innovation and productivity.

Among these advancements, Generative AI has emerged as a game-changer, offering unprecedented potential to reduce costs, automate workflows and streamline business operations. This accelerating pivot toward digital technologies is not only transforming traditional sectors but also fuelling the rapid expansion of Hi-Tech verticals. Industries such as semiconductors, AI/ML and cloud computing are growing at a faster pace than traditional manufacturing and service- led sectors, becoming the primary drivers of future digital engineering initiatives. By CY27, Hi-Tech verticals are projected to account for nearly 55% of total Digital Engineering (DE) spending, reinforcing their leadership in the digital economy.

As organisations continue to embrace digital transformation, Digital Engineering will play an increasingly vital role in delivering innovation and sustained economic growth.

Outlook

The outlook for Indias Engineering Research & Development (ER&D) sector is highly promising, driven by a combination of structural reforms, progressive policy measures and a growing emphasis on self-reliance. Government initiatives such as the Production-Linked Incentive (PLI) scheme and the push for indigenisation, particularly in defence and other strategic sectors, are laying a strong foundation for sustained growth. Rapid advances in electric vehicles, smart manufacturing and infrastructure development are expected to significantly boost the demand for engineering innovation. Indias increasing exports, rising inflow of foreign direct investment and expanding partnerships between global and domestic firms are positioning the country as a future global ER&D hub. Core growth drivers such as talent skilling, automation and the development of industrial corridors are enhancing Indias competitiveness in manufacturing and engineering services. According to NASSCOM, Indias share in the global ER&D market is projected to grow at a CAGR of 12-13%, reaching USD 63 billion by CY25, reinforcing the nations emergence as a key player in the global innovation ecosystem.

Source: https://zinnov.com/engineering-r-and-d/digital-engineering- report-2024-future-proofing-your-enterprise-report/

Digital Transformation (AI)

Overview

The global digital transformation sector has experienced significant growth, increasing from USD 1.75 trillion in CY24 to an expected USD 2.11 trillion in 2025, reflecting a Y-o-Y growth of 20.6%. This expansion is propelled by robust development in emerging markets, broader adoption of digital healthcare technologies, surging data generation and extensive implementation of 5G infrastructure. The digital transformation market size is expected to see exponential growth in the next few years. It is expected to grow at a compound annual growth I rate (CAGR) of 20.2% to USD 4.41 trillion in CY29. The growth will be driven by rising mobile device usage, government support, wider internet availability, growing enterprise investment in digital marketing and heightened demand for industrial automation.

Digital Transformation Market

Market forecast to grow at a CAGR of

Source: Research and Markets

Emerging trends influencing this growth involve advances in AI, machine learning, IoT proliferation, the rise of big data start-ups and increased cross-industry partnerships. AI technologies are particularly instrumental, enabling enhanced predictive analytics, natural language processing and automation that streamline operations and improve decision-making. Industries such as healthcare, life sciences and manufacturing are undergoing rapid transformation. Healthcare benefits from AI-enabled diagnostics, remote monitoring, and automated workflows, which further improve care delivery and cut costs, supported by cloud advancements in security and collaboration. Life sciences are leveraging generative AI to speed drug discovery and optimise manufacturing, while manufacturing adopts AI-driven automation, predictive upkeep and collaborative robotics to boost productivity and safety.

Outlook

The digital transformation market is poised for continued acceleration, fuelled by expanding digital adoption, economic growth and technological innovation in AI, IoT and 5G connectivity. The shift towards remote work and digital collaboration is increasing the demand for cloud services, big data analytics and automation solutions. Supportive government policies, higher mobile device penetration and greater internet access will further enhance market expansion. As organisations focus on boosting operational efficiency, driving innovation and enhancing customer engagement, digital transformation will remain a strategic priority across the sectors globally.

Source: https://www.researchandmarkets.com/reports/5939230/ digital-transformation-market-report

https://www.icra.in/CommonService/OpenMediaS3?Key=9921a040- f08f-4bae-9c9a-34c703167cb5

Opportunities and Threats

Opportunities

Leverage AI at Scale

Prioritise Al-enabled automation and personalisation to enhance customer engagement, with measurable outcomes such as increase in user retention.

Focus on

Industry-Specific Solutions

New technologies can enable innovation, streamline operations, or open up entirely new markets. For example, advances in battery technology present opportunities for companies in the electric vehicle and energy sectors.

Emphasis on Improving Internal Efficiency and Productivity

Improving operational efficiency by optimising processes and standardising practices to lower costs, ensure consistency and increase productivity.

Growth Strategies Fuelled by Partnerships

Collaborative go-to-market strategies, joint product development, technology research and development (R&D) and skill enhancement are highly valued approaches.

Embrace Sustainability as a Differentiator

Incorporate green technologies into core operations to meet regulatory demands and improve brand perception with businesses seeing an increase in customer loyalty.

Threats

Technology Complexity and Integration Risks

New technologies like hybrid computing, spatial computing and agentic AI pose integration, orchestration and security challenges, requiring specialised skills and raising operational risks.

Outdated Infrastructure and Legacy Systems

Many organisations use outdated hardware and software, causing compatibility issues, lower productivity and heightened security risks. Upgrading to modern cloud systems is essential but often costly and complex.

Cybersecurity and Digital Risks

Cyber threats are growing in complexity and scale, including systemic cyber incidents, geopolitical risks, cybercrime and AI-driven attacks. Organisations must focus on digital resilience, strengthen third-party risk management and prepare for IT crises.

Skill Gaps and Talent Shortage

A notable skills gap exists in emerging technologies. To keep up with rapid advancements, companies need to invest substantially in upskilling and training, especially in AI, ML, data analytics and cloud computing.

Company Overview

Mastek empowers enterprises to streamline digital complexities and deliver meaningful business outcomes with trust, value and velocity. We act as a global partner in digital and cloud transformation, serving industries such as healthcare, retail, manufacturing, higher education, financial services and the public sector across 40 countries, including the UK, the US, Europe, the Middle East and Asia-Pacific. Our Company offers expertise across digital experience, digital engineering, cloud implementations, data, automation and AI and cloud managed services. We bring together over 5,000 skilled professionals to deliver tailored solutions that address diverse business needs. We proudly serve as a preferred partner to leading technology providers·including Oracle, Salesforce, Microsoft, AWS and Snowflake·supporting both mid-sized enterprises and Fortune 1000 clients.

Business Review

Revenue by Geography

Total operating revenue for the year ended March 31, 2025 stood at INR 345,523 lakh as against INR 305,479 lakh reported in FY24. The UKI (the United Kingdom and Ireland) & Europe reported an operating revenue of INR 198,052 lakh in FY25, reflecting a growth of 13.9% over the previous years revenue of INR 173,949 lakh. Our Company generated INR 93,285 lakh in revenue from North America, marking a 12.5% increase

compared to INR 82,936 lakh in the prior year. AMEA contributed INR 54,186 lakh to the total revenue, representing an increase of 11.5% from INR 48,549 lakh recorded in FY24.

	FY24
Geographies	Revenue (INR in lakh)	Share (%)
UKI & Europe	173,949	56.9
North America	82,936	27.2
AMEA	48,594	15.9
Total	305,479	100.0

Revenue by Customer Segment

In FY25, the Government & Education segment remained the largest contributor at 40.5% of total revenue, though its share declined from 43.9% in FY24. Notably, the Health & Life Sciences segment saw strong growth, increasing its contribution from 16.3% to 20.4%, reflecting rising demand for digital solutions in healthcare.

	FY24
Customer Segment	Revenue (INR in lakh)	Share (%)
Government & Education	134,248	43.9
Health & Life Science	49,769	16.3
Manufacturing & Technology	46,686	15.3
Retail/Consumer	38,546	12.6
Financial Services	36,231	11.9
Total	305,479	100.0

Revenue by Service Offerings

In FY25, Digital and Application Engineering emerged as the largest revenue contributor at 46.5%, up from 44.3% in FY24, driven by the rising demand for digital transformation services. Data, Automation and AI also showed strong momentum, increasing their share to 9.2% from 7.2%. However, Digital Commerce and Experience witnessed a decline in contribution from 17.6% to 13.0%, indicating a shift in client priorities towards core digital and data-driven initiatives.

	FY25		FY24
Service Offerings	Revenue (INR in lakh)	Share (%)	Revenue (INR in lakh)	Share (%)
Digital and Application Engineering	160,538	46.5	135,287	44.3
Oracle Cloud and Enterprise Apps	108,130	31.3	94,454	30.9
Digital Commerce and Experience	44,960	13.0	53,608	17.6
Data, Automation and AI	31,895	9.2	22,130	7.2
Total	345,523	100.0	305,479	100.0

Business Strengths

BUSINESS STRATEGIES

Expansion in the UK Public Sector and the US Healthcare Market:

The United Kingdom remains our largest and fastest-growing market, fuelled by the rising demand for digital, data, and AI services, particularly in vital areas like healthcare. Our focus is on deepening partnerships and expanding our top five UK Public Sector accounts by working together on impactful projects across key areas such as Secure Government, Borders and Immigration, the Ministry of Defence, City Councils and Financial Services, including prestigious institutions like the Bank of England. We are building long-standing relationships with departments such as the Department of Justice and guiding organisations on their cloud transformation journeys with Oracle. With new UK frameworks in place, we are making a meaningful impact across defence, national security, revenue and customs, and cabinet office projects. Our goal is to support national priorities·whether thats advancing migration and border initiatives or strengthening Police, Public Protection and Justice efforts. At the same time, were expanding our role across the central government, local authorities, education and health sectors, drawing on our deep experience in areas like immigration, defence and security. Moreover, securing contracts or financial accounts tied to UK Export Finance services (UKEF)

represent an extension and expansion of ongoing collaborations that aim to support the transformation of the departments digital data and technology services.

Alongside our UK success, we are accelerating growth in the United States healthcare and life sciences market, which has now become a key focus area. Through strategic acquisitions such as MetasoftTech Solutions (MST) and BizAnalytica, we are enhancing our capabilities in cloud computing, data analytics and digital transformation. These investments are enabling us to deliver high- impact, compliance-driven solutions that truly make a difference in the complex and highly regulated US healthcare environment.

Deepening Client Relationships: At Mastek, we are deeply committed to building lasting relationships with our clients by putting their needs at the heart of everything we do. Our focus is on creating long-term value through strategic alignment, proactive collaboration and a genuine understanding of their evolving priorities. By working closely with our clients through dedicated account management, co-innovation partnerships and a consultative approach, we are able to design and deliver digital solutions that are truly tailored to their goals.

We align our service lines·covering digital engineering, cloud transformation, data and analytics·with each clients unique objectives to ensure our work is both relevant and impactful. We achieved a CSAT score of 5.66 out of 7 across all engagements. The average customer satisfaction rating for Cloud Enhancement & Managed Services (CEMS) stands at 5.30 out of 7. Regular leadership connects, joint governance forums and collaborative delivery models, informed by CSAT and pulse survey feedback help us build trust, strengthen transparency and deepen our partnerships. These efforts not only enhance client satisfaction but also allow us to grow our presence within existing accounts and support new areas of their business.

Increased Focus on Mid-sized Customers (USD 2 billion and below): Mastek has consistently secured new engagements with mid-sized customers quarter after quarter, with most of these wins concentrated in a single service line. Today, the Company offers a well-rounded portfolio covering Enterprise Resource Planning (ERP), Customer Experience (CX), Data, Digital and more. With our AI-first approach, Mastek is positioned to evolve into a strategic partner by combining the expertise of a specialist with the breadth of a global systems integrator, helping clients scale beyond a single service line. Going forward, Mastek will sharpen its focus on mid-sized customers, creating a strong and stable foundation for sustained growth, particularly across the U.S. and Europe.

Increasing Investment in Data and AI: We are significantly increasing our investment in Data and AI as a core driver of digital transformation and business growth. Our focus is on expanding AI and Automation-led services across all offerings, powered by proprietary platforms and strategic partnerships. Our comprehensive portfolio of full stack suite of AI solutions and services - Mastek Adopt ai. is designed to help businesses innovate faster, become more agile, and deliver measurable outcomes. We have also launched AI Engineering Centre of Excellence (CoE), a dedicated hub for AI consulting, integration services, and developing of AI Agents, AI-enabled applications and industry-specific use cases. This initiative is bolstered by strategic collaborations with platform leaders such as Microsoft, Oracle, and Salesforce, enabling seamless AI integration into core business applications.

• AI for Technology: We are advancing our Software Delivery Excellence by combining proprietary AI tools with leading industry solutions. With in-house innovations like Mastek

- AI Amigo, AI Enabler, ITSM Agent, Genflow, and SQLNext, alongside best-in-class external tools like GitHub Copilot and Amazon Q Developer, were boosting productivity, accelerating delivery, enhancing developer experience, and improving application quality. By integrating AI across the software development lifecycle, were delivering AI-driven digital and data engineering services, and enabling faster deployment of enterprise business applications.

• AI for Business: We have developed a holistic framework to embed AI across the enterprise application landscape, structured around three strategic pillars: (a) a platform-led approach leveraging core business applications, (b) agentic process automation to streamline workflows, and (c) tailored agentic AI solutions for domain-specific needs. With a growing

library of solution blueprints and assets spanning legal, marketing, customer service, HR, ERP, finance, and more, Mastek is simplifying and accelerating enterprise AI adoption.

• AI for Data: Robust, well-governed data is the foundation of every successful AI initiative. We offer comprehensive data modernisation and data engineering services to ensure clients data is ready, reliable, and compliant for AI system development. Our Galaxy suite of accelerators ensures data reliability, governance, and readiness. We have also launched Lightbeam, our AI-Driven Workload Optimisation platform for Data Cloud that eliminates inefficiencies, and reduces Total cost of Ownership (TCO).

• Building an AI-Ready Workforce: Through Mastek AI Academy, we are upskilling our workforce in AI. We achieved a key milestone of certifying the majority of our workforce, reinforcing the Companys AI-led transformation journey.

Over 3,600 people in our workforce are AI certified, covering a range of competencies from foundational AI and AI-infused SDLC practices to advanced specialisations in platforms such as Oracle, Salesforce, AWS, and Microsoft.

Pursuing Strategic Partnerships: The strategic pursuit of partnerships is a key pillar of our growth and innovation agenda, enabling us to accelerate progress, expand our market reach and strengthen core capabilities. By collaborations with leading technology providers, emerging startups and industry peers, we aim to access cutting-edge solutions, co-create differentiated offerings and unlock new revenue streams. To further scale AI innovation, Mastek has forged strategic partnerships with NVIDIA and Open Ana, leveraging their advanced AI capabilities. Backed by a strong talent pool across these ecosystems, Mastek is uniquely positioned to deliver scalable, secure, and high-impact AI solutions that transform how enterprises operate and compete.

Driving Innovation through Mastek 4.0: Driving innovation through the Mastek 4.0 framework is a central pillar of our strategic vision, enabling us to accelerate our transformation into a more digitally empowered organisation equipped to meet evolving market demands. This next-generation framework integrates cloud-native development, AI, automation and digital engineering to enhance how we build and deliver solutions.

It promotes cross-functional collaboration, continuous improvement and faster time-to-market, positioning Mastek as a trusted partner in our clients digital transformation journeys.

OPERATIONAL HIGHLIGHTS FOR FY25 UKI and Europe

With a presence in the UK for over more than 30 years, we have built a strong focus on critical national infrastructure sectors such as borders, immigration, defence and security. Mastek is recognised as a trusted partner for Digital Engineering and Cloud Transformation, catering to both public and private sector clients in UKI and Europe. Despite broader macroeconomic challenges, our business has remained resilient, driven by accelerating digitisation initiatives. Our partnerships with civil services and private enterprises have played a key role in regional expansion,

with the UKI and Europe contributing around 57.3% of our total revenue in FY25.

Business Performance

The UKI and Europe business continues to be a key driver of our overall performance, building on its strong digital services foundation while witnessing notable growth in our Data and Artificial Intelligence capabilities. Mastek, a trusted partner in digital engineering and cloud transformation, is proud to have been chosen by National Health Service (NHS) England to deliver vital cybersecurity training for NHS Boards and Senior Information Risk Owners (SIROs), in collaboration with Templar Executives. This one-year contract, with the option to extend, reflects a shared commitment to strengthening cyber resilience across the NHS.

Backed by NCSC assurance, this training equips NHS executives and SIROs to manage cyber risks, ensure compliance, and foster a security culture, safeguarding patient data and critical healthcare services in an increasingly digital world. Complementing this, our NHS Data Warehousing engagement delivered a complete overhaul of the existing data stack, replacing fragmented legacy systems with a centralised, cloud-enabled platform. This modern architecture enables real-time data collection 10 times faster, with a 90% quicker turnaround for critical reporting, while improving data accuracy, accessibility, and governance. It also provides the foundation for high-impact initiatives such as the A&E Dashboard, Patient- Level Costing, and advanced analytics to support preventive healthcare strategies. Healthcare remains the highest-growth sector, fuelled by sustained government investment and strategic projects focused on prevention and data analytics. This year, we successfully renewed nearly all of our large contracts, securing a healthy backlog that provides a strong runway for the next couple of years and positions us well to aggressively pursue new growth opportunities in FY26 and beyond.

Our secured government services, which form the backbone of our UK operations, continue to perform strongly. We are successfully expanding our footprint by winning new departmental engagements. In addition to healthcare, our private sector business in the United Kingdom and Europe is gaining significant traction. During the year, we secured two of our largest private sector deals, one in the United Kingdom and another in Europe, highlighting our expanding footprint and the positive momentum in this segment. Our secured government services business remains stable and resilient, supported by a strong pipeline of opportunities. A notable win includes a data and analytics platform deal with a central United Kingdom bank, demonstrating the strong synergy from our BizAnalytica acquisition and opening the door for further growth in this space.

The governments continued focus on healthcare investments is driving meaningful opportunities that align closely with our expertise. With election uncertainties now resolved, the clearer strategic direction from the new Labour government is already having a positive impact on our business, particularly in National Health Service and defence programmes. We are already

seeing favourable impacts flowing into our business pipeline,

strengthening confidence in sustained robust performance

across the UK and Europe markets.

Key Highlights

• Secured a major engagement with a leading UK technical engineering solutions provider to implement Oracle Cloud Applications, replacing legacy systems to boost operational efficiency, accelerate decision-making, and unify data management.

• Mastek modernised a legacy platform for a leading UK- based educational fintech provider by leveraging its AI- powered platforms and tools for both reverse and forward engineering. This AI-first modernisation strategy delivered a future-ready system that is scalable and high-performing, while doubling efficiency, enhancing quality, and significantly reducing technical debt.

• Awarded two strategic multi-year extensions to manage and enhance the UK Immigration platform, delivering live support and integrating digital dashboards across Immigration,

Border Force, and the UK Visas to advance data-driven governance and citizen services through Agile DevSecOps.

• Engaged by the UKs official export credit agency to provide end-to-end software engineering, modernising citizen-facing channels, optimising data utilisation, and strengthening testing capabilities to support export growth.

• Partnered with the UKs publicly funded healthcare system to transform recruitment services via modular solutions, user- focused design, and automation of candidate longlisting, enabling scalable and efficient hiring processes.

• Leading a comprehensive initiative to modernise data provisioning for Englands public healthcare system by consolidating legacy platforms, implementing a common data platform and introducing automation to enhance data visibility and workflow efficiency.

• Developing and continually enhancing the Counter Fraud and Error Management Service (CFEMS) for the UK governments welfare and pensions department, leveraging advanced analytics and data to prevent and address fraud and errors.

• Providing architectural, technical and testing expertise to expand and optimise the UK Immigration platform, including enhancements to border systems and development of Electronic Travel Authorisation (ETA).

• Collaborating with a national health provider to develop digital tools that improve disease monitoring and prevention by harnessing integrated national healthcare data.

• Implementing Oracle HCM for a global pharmaceutical research organisation to modernise HR operations while

ensuring compliance with regulatory requirements across Europe and the US.

• Secured a multi-country agreement with a global energy storage company to activate Oracle Cloud Enterprise applications, enhancing scalability, regulatory compliance, decision-making and cost efficiency across European markets.

• Delivering round-the-clock live service support for a Critical National Infrastructure system, ensuring uninterrupted goods movement across the UK borders, a vital component of national trade operations.

• Enhancing operational dashboards and case management platforms for a key UK ministerial department to support new immigration routes and the implementation of the New Plan for Immigration related to asylum and refugee management.

• Selected by a central bank in Europe to design and implement a modern data and analytics platform, including system migration, software replacement and comprehensive change management focused on adoption.

The United States

In the United States, we are focused on deepening our presence across high-impact sectors, with healthcare emerging as a key pillar of growth. Leveraging Oracle Cloud-based solutions, we continue to expand our engagements with healthcare providers, senior living facilities and regional health plans. This momentum reflects our ability to address evolving industry needs through scalable, cloud-enabled platforms. At the same time, we are mindful of the broader macroeconomic landscape, where policy shifts and market volatility have led some clients to insource operations or pause investment decisions. While these headwinds have presented short-term challenges, we remain confident in the resilience of our strategy and the long-term potential of our U.S. business.

To navigate this environment, we are undertaking a strategic reset across our North America operations. This includes strengthening our leadership team, refining our organisational structure and re-engineering our go to market approach to better align with client needs and market dynamics. In parallel, we are building deeper, innovation-led partnerships with clients to drive long-term value. A strong example of this is our work with a USD 7 billion recreational vehicle manufacturer and distributor during the year, where we assumed responsibility for two digital engineering pods and successfully implemented a customer loyalty programme within six months of engagement. This reflects our growing relevance in the U.S. market and underscores the trust our clients place in our ability to deliver meaningful outcomes.

Oracle

Oracle offers a comprehensive and versatile product portfolio, with its Oracle Fusion Cloud Applications providing robust front-and back-office functionalities across enterprise

resource planning (ERP), enterprise performance management (EPM), human capital management (HCM) and supply chain management (SCM).

Oracle Manufacturing Cloud serves as a transformative tool, converting challenges into opportunities for success. Building on this foundation, our focus across service lines is on enhancing delivery and driving operational efficiency through continuous innovation, with generative artificial intelligence now forming the core of our strategic direction

Salesforce

Salesforce remains a vital component of our AI and data innovation initiatives. Mastek, drawing on its expertise in retail (Consumer-Packaged Goods) and digital strategy, specialises in crafting tailored e-commerce solutions for its clients. Oracle CX Commerce offers personalised experiences and advanced analytics, while Salesforce Commerce integrates seamlessly with CRM for omnichannel experiences. Acquisition of MST Solutions, a Salesforce Summit Level Consulting Partner, enhances Masteks presence across Healthcare, Manufacturing/ Tech and the US State and Local Government sectors.

Business Performance

In the United States, our business continues to demonstrate strong performance, anchored by robust growth across Digital, Data, AI, Oracle and Salesforce service lines. The healthcare sector remains a significant contributor, with steady progress in both new client acquisitions and the expansion of existing relationships. Notably, we are partnering with a leading not-for- profit healthcare provider on a comprehensive transformation programme and modernising a regional health plans claims management platform using Salesforce. These engagements highlight our capability to deliver meaningful outcomes through technology-led innovation. With over 120 active clients in the region, we are collaboratively shaping their digital and AI strategies, enabling deeper relationships and broader crossservice integration.

Our Al-led implementation framework, ADOPT AI., has enhanced delivery excellence, offering clients significant efficiency gains across all stages of Oracle Cloud implementation. The frameworks success has led to its expansion into Salesforce and Digital, amplifying our integrated approach. Further, the launch of our data modernisation tool, Lightbeam and the development of over 100 AI use cases are further elevating our value proposition. These advancements underscore our ability to deliver future-ready solutions, support business transformation at scale and create long-term value for clients across the region.

Key Highlights

• Secured a multi-year contract with a US Fortune 500 asset management leader to design and implement a scalable data warehouse migration framework, enhancing performance, regulatory compliance and responsiveness.

• Engaged by a US-based non-profit healthcare insurance provider to implement Oracle Cloud Enterprise Suite, streamlining billing through integrated Claims and Membership systems for improved financial visibility and operational efficiency.

• Leading finance, customer experience and planning transformation for a US-based statistical software pioneer using Oracle Cloud, driving real-time insights and operational excellence.

• Providing managed Oracle Cloud services for a US beachfront community, covering Financials, Supply Chain Management (SCM), Human Capital Management (HCM), Enterprise Performance Management (EPM), platform and infrastructure services to support sustainable urban growth.

• Secured a multi-year Oracle Cloud Enterprise Suite enhancement contract with a global advanced energy solutions provider, delivering continuous support, flexible incident management and scalable services across multiple regions.

• Awarded strategic partnership as Quality Assurer for Salesforce applications with a leading US healthcare insurance non-profit, incorporating custom Gen AI accelerators, performance testing and real-time QA feedback mechanisms.

• Extended partnership with a major US public health plan to enhance Salesforce-powered Claims platform (QNXT) and advanced reporting capabilities, boosting operational efficiency and member service delivery.

• Selected by a US global study abroad provider to implement Salesforce and oversee data migration, eliminating redundant processes and improving operational efficiency and data integrity.

• Partnered with a US healthcare apparel innovator to deliver managed services for scalable data management and advanced analytics, aligned with long-term consulting and cost optimisation strategies.

• Recognised as a Disruptor in Avasants Oracle Cloud ERP Services Radar View FY25 and as a Product Challenger

in ISGs 2025 Salesforce Ecosystem Partners report for expertise in core clouds, AI agents and managed services.

• Listed by Gartner as a trusted vendor for Oracle Cloud Infrastructure professional and managed services, covering OCI consulting, Autonomous Data Warehouse, Oracle Analytics Cloud, AI/ML and GenAI solutions.

• Signed multiple incremental agreements with a US Fortune 500 premium athletic apparel company to enhance direct-to- consumer capabilities using Salesforce, digital commerce and data analytics, improving customer experience and driving sales growth.

• Partnered with a US Fortune 500 recreational vehicles company on enterprise modernisation and secured a 3-year infrastructure management contract to support consumer engagement and business expansion.

• Engaged by a US global investment platform to modernise investment data management leveraging Snowflake, delivering a unified data platform, accelerated reporting and reduced total cost of ownership.

• Providing business analysis and reporting transformation services for a global life sciences analytics provider, focusing on KPIs and Salesforce effectiveness to optimise system performance and outcomes.

Asia Pacific, Middle East and Africa (AMEA)

In the AMEA region, we are focused on sustainable growth by streamlining key accounts and building stronger client partnerships. We are aligning our teams to address the growing demand for digital and data-led healthcare solutions.

Business Performance

In the AMEA region, including APAC and the Middle East, we are focused on profitable growth by maintaining strong operational discipline and expanding in promising sectors. Healthcare continues to be our main area, shifting from primarily Oracle services to also include Salesforce, Data and AI, allowing us to offer complete solutions.

Australia is an important growth market where we have made significant progress, winning projects in local government, healthcare and ports. Our approach in Australia and the wider APAC region is to expand healthcare services across all areas, strengthening our position and supporting sustainable longterm growth.

Key Highlights

• Secured a strategic engagement with a leading UAE healthcare provider to transform patient engagement and streamline operations leveraging Salesforce Health and Marketing Cloud, enhancing visibility across patient journeys, ensuring secure data management and facilitating seamless interdepartmental coordination.

• Awarded a contract by a major UAE conglomerate to implement Oracle Cloud, integrating seven entities for comprehensive real estate and property management automation, addressing IFRS reporting, invoice reconciliation

and revenue recognition to optimise operational efficiency and support sustainable growth.

• Engaged by a prominent foreign aid agency to support sustainable socio-economic development initiatives across emerging markets.

• Executed transformation of an on-premise Oracle E-Business Suite environment to Oracle Cloud Fusion, powered by Mastek Glide 4.0?, improving user experience through advanced UI/UX and embedded GenAI features, establishing Mastek as a key cloud partner for UAE public sector modernisation.

• Implementing Oracle HCM for a major Australian mining company to transform HR processes and scale operations across Australia and Papua New Guinea.

• Supporting a healthcare institution in the Middle East by re-engineering business processes and integrating data on Oracle Cloud, enhancing compliance, financial closing and operational efficiency.

• Secured a three-year multi-tower Oracle ERP surround transformation contract with a leading Middle Eastern financial services organisation, delivering services across Oracle Fusion ERP, Fusion HCM, DBA & Linux, PMO & Change Management, Quality Assurance, Low-Code/No-Code and Java development.

• Partnered with a large regional council in Australia to implement Oracle Cloud Enterprise Suite and drive digital transformation by replacing legacy systems with scalable, integrated solutions, significantly enhancing citizen service delivery.

• Engaged by a Saudi financial services conglomerate for a comprehensive Oracle Fusion ERP and HCM transformation, including PMO, Quality Assurance, Low-Code/No-Code development and change management.

• Collaborated with a renowned Middle Eastern healthcare institution specialising in stem cell therapy and regenerative

medicine to re-engineer business processes, enable seamless data integration and migration on Oracle Cloud, thereby improving data visibility, compliance, financial close processes and operational efficiency.

• Implemented Oracle Governance, Risk and Compliance (GRC) solutions for a leading healthcare, research and education institution in the Middle East, strengthening risk management frameworks, automating compliance analysis, reducing costs and enhancing operational resilience and regulatory adherence.

Update on Change in Board of Directors / Management

Mr. Umang Nahata has been appointed as a Whole-Time Director designated as CEO - Mastek Group for a period of three years with effect from January 16, 2025, liable to retire by rotation. Mr. Umang Nahata was the founder and CEO of Evosys Group which under his leadership had grown to become one of the top Oracle Cloud partners globally. He was also the CEO of Masteks Oracle Business and President of Mastek North America, APAC and ME. He is a Chartered Accountant by qualification. Mr. Nahata has also worked for other well-known IT Service companies in the past. Mr. Umang Nahata is a director in the Company with effect from July 19, 2023.

The Company underwent notable changes in its leadership.

Mr. Hiral Chandrana, Chief Executive Officer, stepped down on September 3, 2024, followed by the resignation of Chief Financial Officer, Mr. Arun Agarwal, on January 29, 2025. Throughout these transitions, the organisation has remained committed to ensuring continuity and upholding strong governance standards.

People Strength

As of March 31, 2025, the Group had a total headcount of 5,058 compared to 5,539 employees at the end of March 31, 2024.

For further details refer to page number 48-51

Financial Overview

Mastek presents key highlights of the Financial Results (Consolidated and Standalone) for the Financial Year ended March 31, 2025, compared to the previous Financial Year, as summarised below:

Particulars	Consolidated			Standalone
	FY25	FY24	Y-o-Y (%)	FY25	FY24*	Y-o-Y (%)
Revenue From Operation	3,45,523	3,05,479	13%	48,629	43,424	12%
Employee Expense	1,85,903	1,67,091	11%	33,530	29,810	12%
Other Expense	1,04,975	87,521	20%	6,730	6,674	1%
Operating EBITDA	54,645	50,867	7%	8,369	6,940	21%
Other Income	2,228	1,601	39%	7,335	7,225	2%
Total EBITDA	56,873	52,468	8%	15,704	14,165	11%
Profit Before Tax	45,916	38,619	19%	13,936	12,706	10%
Profit After Tax	37,593	31,097	21%	12,058	12,021	0%

^Restated numbers for FY24 standalone financials

Standalone

On a standalone basis, our Company delivered a healthy performance. Revenue from operations for FY25 stood at INR 48,629 lakh, up 12% from INR 43,424 lakh in the previous year. Employee expenses increased by 12% to INR 33,530 lakh and other expenses grew slightly by 1% to INR 6,730 lakh. Operating profit rose by 21% to INR 8,369 lakh, driven by better cost management and scale benefits.

Other income on a standalone basis increased by 2% to INR 7,335 lakh, contributing to a 11% rise in Total EBITDA, which stood at INR 15,704 lakh. Profit before tax grew by 10% to INR 13,936 lakh. However, profit after tax remained flat at INR 12,058 lakh, compared to INR 12,021 lakh in FY24, as higher tax expenses offset gains from improved operations.

Consolidated

In FY25, our Company reported strong growth on a consolidated basis. Revenue from operations increased by 13% to INR 345,523 lakh, compared to INR 305,479 lakh in FY24. This performance was driven by steady demand across key markets and continued expansion of services. Employee expenses rose by 11% to INR 185,903 lakh, reflecting salary revisions and investment in talent development. Other expenses also increased by 20% to INR 104,975 lakh, largely due to higher operational activity, technology upgrades and administrative costs.

Despite these increases, operating EBITDA grew by 7% Y-o-Y to INR 54,645 lakh. Other income rose sharply by 39% to INR 2,228 lakh, supported by better returns on treasury and investment income. As a result, Total EBITDA increased by 8% to INR 56,873 lakh, demonstrating stable operating performance. Profit before tax rose by 19% to INR 45,916 lakh and profit after tax grew by 21% to INR 37,593 lakh, reflecting improved profitability and operational efficiency.

Profitability

During the financial year ended March 31, 2025, the Group recorded a consolidated net profit of INR 37,593 lakh, reflecting an increase from INR 31,097 lakh reported in the previous year ended March 31, 2024.

Profit for the year grew 21% Y-o-Y owing to the following reasons:

• Growth was supported by higher revenues, improved cost efficiencies and optimal resource utilisation

• Exceptional gains arising from the reversal of excess provisions for contingent consideration related to the North America operations, partially offset by

- Impairment of goodwill and other intangibles associated with the Taistech business and ECL provisions, and

- An increase in talent costs, driven by strong demand for niche and skilled professionals

Balance Sheet Assets

1. Property Plant and Machinery

• As of March 31, 2025, tangible assets (including investment property) stood at INR 8,223 lakh, slightly lower than INR 8,814 lakh in the previous year.

The movement in value is attributed to the following:

• Gross additions of INR 2,393 lakh and deletions of

INR 182 lakh, primarily related to computers, furniture & fixtures and buildings.

• Depreciation expense of INR 2,893 lakh during the year.

• Net foreign exchange translation adjustment of INR 91 lakh.

2. Other Intangible Assets and Goodwill

As of March 31, 2025, intangible assets and goodwill stood at INR 173,568 lakh, compared to INR 186,179 lakh in the previous year. The year-on-year change is attributed to the following factors:

• Gross additions of INR 1,295 lakh and deletions of INR 3 lakh towards computer software, customer contracts and customer relationships.

• Amortisation charge of INR 4,619 lakh

• Impairment of INR 1,344 lakh towards customer relationships and INR 11,388 lakh towards goodwill

• Net impact of foreign exchange translation and other adjustments of INR 3,448 lakh

3. Non-Current Financial Assets

(A) Investments

Non-current investments include holdings in venture capital. As of March 31, 2025, investment in ventures stood at INR 1,737 lakh compared to previous year at INR 1,655 lakh. In accordance with Ind AS 109, financial assets classified under fair value through other comprehensive income (FVTOCI) are remeasured at fair value at each reporting date, with changes recognised in Other Comprehensive Income (OCI).

(B) Other Financial Assets

Other non-current financial assets, including loans and bank deposits, amounted to INR 2,052 lakh as of March 31, 2025, down from INR 3,564 lakh in the previous year. The decrease is mainly attributable to bank deposits with a remaining maturity of more than twelve months.

4. Other Non-Current Assets

As of March 31, 2025, other non-current assets amounted to INR 155 lakh, marginally higher than INR 150 lakh reported as of March 31, 2024. There was no significant increase during the year.

5. Income Tax Assets and Liabilities

As of March 31, 2025, current income tax assets stood at INR 2,207 lakh, compared to INR 2,900 lakh in the previous year, primarily representing domestic corporate tax receivables. Current income tax liabilities amounted to INR 4,037 lakh, up from INR 2,985 lakh in the previous year. These liabilities mainly pertain to estimated income tax obligations in overseas jurisdictions.

6. Deferred Tax Assets and Liabilities

As of March 31, 2025, deferred tax assets amounted to INR 15,463 lakh, up from INR 10,760 lakh in the previous year. These primarily relate to deferred tax on carried- forward losses, provisions for employee benefits and bonuses, share-based payment transactions (recognised through OCI) and expected credit loss allowances.

Deferred tax liabilities stood at INR 1,339 lakh as of March 31, 2025, compared to INR 3,354 lakh in the previous year. These mainly arise from undistributed profits of subsidiaries, amortisation of goodwill, fair valuation of investments and cash flow hedge accounting adjustments.

7. Current Financial Assets

(A) Investments

As of March 31, 2025, investments amounted to INR 16,066 lakh, compared to INR 7,726 lakh in the previous year. These primarily consist of quoted mutual fund units. In line with Ind AS, financial assets and liabilities classified under fair value through profit and loss (FVTPL) are remeasured at each reporting date, with changes in fair value recognised in the statement of profit and loss.

(B) Trade Receivables

Trade receivables stood at INR 73,761 lakh as of March 31, 2025, up from INR 56,131 lakh in the previous year. Days Sales Outstanding (DSO) improved to 89 days, compared to 93 days in the prior year.

(C) Cash and Cash Equivalents

Cash and bank balances as of March 31, 2025 were

INR 46,076 lakh, a significant increase from INR 38,112 lakh

reported in the previous year.

(D) Other Current Financial Assets

Other current financial assets stood at INR 1,594 lakh as of March 31, 2025, down from INR 1,948 lakh in the prior year. The decrease was primarily driven by the derivative assets (forward contracts).

8. Other Current Assets

As of March 31, 2025, other current assets amounted to INR 21,872 lakh, up from INR 15,047 lakh in the previous year. The increase was primarily due to higher advances to suppliers, R&D credit receivables and input tax credit.

Equity & Liabilities

9. Total Equity

The Company has a single class of equity share capital with a face value of INR 5 each. As of March 31, 2025, the issued, subscribed and paid-up capital stood at INR 1,547 lakh, compared to INR 1,542 lakh in the previous year.

10. Non-Current Financial Liabilities

(A) Borrowings

As of March 31, 2025, non-current borrowings stood at INR 37,923 lakh, up from INR 31,330 lakh in the previous year. The increase was primarily due to a term loan availed during the year to fund liabilities relating to acquisitions.

(B) Lease Liabilities

Lease liabilities stood at INR 1,639 lakh as of March 31, 2025, reflecting a decrease from INR 2,155 lakh in the previous year.

(C) Other Financial Liabilities

Other financial liabilities were INR 32 lakh as of March 31, 2025, a significant decrease from INR 9,881 lakh in the prior year. This decline was mainly due to the payment of contingent consideration during the year.

11. Provisions

As of March 31, 2025, long-term provisions stood at INR 5,176 lakh, up from INR 4,008 lakh in the previous year. The increase was primarily driven by higher employee benefit obligations.

12. Current Financial Liabilities

(A) Borrowings

Current borrowings stood at INR 17,594 lakh as of March 31, 2025, up from INR 17,325 lakh in the previous year. The increase was primarily due to a term loan availed during the year to fund liabilities relating to acquisitions.

(B) Lease Liabilities

Lease liabilities amounted to INR 1,157 lakh as of March 31, 2025, slightly higher than INR 1,086 lakh reported in the prior year.

(C) Trade Payables

Trade payables were INR 25,599 lakh as of March 31, 2025, compared to INR 22,041 lakh in the previous year. The increase was mainly driven by higher subcontracting costs and software-related purchases.

(D) Other Current Financial Liabilities

As of March 31, 2025, other current financial liabilities stood at INR 18,050 lakh, significantly lower than INR 45,896 lakh in the previous year. The decrease is primarily due to payment of contingent consideration payable.

13. Other Current Liabilities

As of March 31, 2025, other current liabilities amounted to INR 12,540 lakh, up from INR 9,143 lakh in the previous year. The increase was mainly due to higher statutory dues payable.

14. Contract Liabilities

Contract liabilities stood at INR 10,918 lakh as of March 31, 2025, an increase from INR 7,349 lakh reported in the previous year

15. Provisions

As of March 31, 2025, short-term provisions stood at INR 3,950 lakh, up from INR 3,219 lakh in the previous year. The increase is primarily attributable to a reduction in employee benefit provisions.

Significant Change in Key Financial Ratios

We, in compliance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, are required to disclose significant changes defined as changes of 25% or more compared to the immediately preceding financial year in key sector-specific financial ratios. Mastek has identified the following as its key financial ratios for this purpose:

Particulars	FY25	FY24
Revenue Growth (%)*	13.1	19.2
Interest coverage ratio	11.2	9.4
Current RatioA	1.9	1.4
Debt-Equity Ratio	0.23	0.23
Debtors turnover (in days)	83	89
Operating margin (%)	15.8	16.7
Net profit margin (%)	10.8	10.1
EPS Basic (INR)	121.8	98.0
Return on Net Worth (%)	16.5	16.1

* FY25 faced macroeconomic headwinds, delayed decisionmaking cycles and slower discretionary spending, particularly in key international markets.

A Increase in Current Ratio due to reduction in Current Liabilities owing to write-back of excess contingent consideration liability provided.

Business Outlook

At Mastek, we take pride in how weve remained steadfast in our strategy over the past three years·consistently delivering on our commitments, navigating challenges with resilience and building sustained momentum. This perseverance is evident in our robust 12-month order backlog of INR 2,290.9 crore as of March 31, 2025, reflecting a 5.6% year-on-year growth. As we look ahead to FY26, we are united by a bold ambition: to be a leading mid-cap IT services company that drives purposeful innovation, grows responsibly and shapes a future that is both inclusive and intelligent.

Our strategic priorities are sharply defined. We are focused on deepening our footprint in the UK public sector, expanding our presence in the healthcare space across AMEA, the US and the UK and strengthening our engagement with top global accounts. At the same time, we continue to scale our capabilities in AI, data and automation. From embedding AI across all service lines to high-impact initiatives like the Microsoft Hackathon and our strategic partnership with NVIDIA, we are unlocking intelligent, scalable automation that delivers real-world value for our clients.

AI, for us, is not just a technology·its a catalyst for transformation across delivery, consulting and co-creation. In June 2025, we launched ADOPT AI., our end-to-end AI suite aimed at accelerating enterprise adoption across three key areas: Technology, Business and Data. With over 80 AI agents and more than 100 use cases, ADOPT AI. is already delivering efficiency gains of up to 40%. Combined with our deep strategic partnerships with Oracle, Salesforce and Microsoft and supported by recent acquisitions, we are well-positioned to scale our presence in the US and offer tailored, cross-sell opportunities across our client base.

Our consulting-led approach continues to drive strong performance in the UK, where we work closely with clients across healthcare, financial services, retail, manufacturing and the public sector. Collaborations with NHS organisations such as NHS Digital demonstrate our commitment to enabling better healthcare outcomes and lasting transformation. What sets us apart is our ability to blend deep domain knowledge with advanced AI and cloud expertise·helping clients confidently navigate change. With a growing demand for intelligent, agile solutions, particularly in the public sector, we remain well-positioned to deepen our role as a trusted digital partner in key global markets.

Risk Management

We have robust risk management structure at Mastek which 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, facilitating a culture grounded in ethical values and integrity. Such a culture significantly contributes to the Companys overall risk mitigation efforts. Our comprehensive risk management framework, supported by a range of policies, ensures the effective management of risks related to delivering products and services to clients, while staying aligned with our strategic business objectives. We promote open dialogue and transparency in risk-related decision-making among our employees, encouraging a proactive and collaborative approach to risk management. This framework, approved by the Boards Risk Management & Governance Committee, is consistently implemented across teams throughout the organisation.

Human Resource

Our organisation places strong emphasis on cultivating a performance-driven workforce while prioritising the health and well-being of employees and their families. To support this goal, we have implemented a comprehensive range of policies and benefits designed to maximise employee engagement and welfare. Our Company continues to cultivate a collaborative, learning- oriented and growth-focused work environment that actively empowers employees to realise their full potential. We firmly believe in the importance of promoting an open and transparent workplace culture, where employee experiences, feedback and suggestions are highly valued and thoughtfully integrated into our people strategies to continuously enhance engagement and organisational development. We at Mastek also promote regular engagement through a variety of initiatives, including structured interactions between employees and executive leadership, as well as organisation-wide and function-specific forums like Quarterly

Meets. These platforms provide Mastekeers with continuous opportunities to connect with management and actively contribute to shaping the workplace culture.

Environment-Social-Governance (ESG)

Mastek advanced its ESG agenda during the year through initiatives that integrate environmental stewardship, social responsibility, and strong governance into our operations. We continued to reduce our carbon footprint by optimising energy use, adopting green technologies, and promoting remote collaboration. Social initiatives focused on employee wellbeing, diversity, equity, and inclusion, as well as community engagement through education and skilling programmes. Governance was reinforced through robust compliance frameworks, transparent disclosures, and ethical business practices. These efforts align with our long-term vision to create sustainable value for stakeholders while contributing positively to the environment and society.

Internal Control System

Internal controls are essential to sound governance, offering a structured balance between operational flexibility and oversight. We have implemented a comprehensive framework to continuously assess the adequacy, effectiveness and efficiency of our corporate, financial and operational controls. We at Mastek remain committed to upholding a robust internal control environment that aligns with the scale and complexity of our operations. Our Company ensures adherence to internal policies, applicable laws and regulatory requirements while safeguarding its resources and assets. We have integrated a remote working model into our business continuity strategy, allowing employees to work from home or other remote locations when appropriate. Our Company has structured its processes to ensure secure and efficient remote operations, while maintaining the integrity of internal controls over financial reporting.

We manage a global footprint across multiple geographies with a diverse network of employees, suppliers and partners, requiring strong internal controls and scalable processes. Our Company has established robust Internal Financial Controls supported by clear policies and procedures. These controls help ensure efficient business operations, protect assets, prevent fraud, maintain accurate financial records and enable timely financial disclosures.

Internal Audit

The Internal Audit function at Mastek engages an independent Internal Audit Firm, empowered at the corporate level, to conduct risk-focused audits across all domestic and international business units. We ensure these audits thoroughly evaluate the adequacy and effectiveness of business process controls covering finance, operations, asset protection and regulatory compliance. Our Company collaborates with external subject matter experts to review specialised areas as needed. The scope of Internal Audit activities is defined by the Audit Committee of the Board to maintain alignment with strategic audit objectives and good governance practices. Additionally, our Company has expanded the audit scope to include internal controls of newly acquired entities, reflecting its evolving business landscape.

Our company continuously monitors the ERP framework, along with other corporate process controls and operational systems, as part of its internal audit process. Senior management actively supervises the internal control environment and ensures timely implementation of the Internal Auditors recommendations. Strategic oversight is provided by the Audit Committee, which regularly reviews key findings and offers guidance. To strengthen independence and accountability, Internal Auditors report directly to the Audit Committee.

Whistleblowing

Mastek has a robust Whistleblower Policy that encourages employees, partners, and stakeholders to report any unethical conduct, fraud, or violations of company policy without fear of retaliation. The mechanism ensures confidentiality, impartial investigation, and appropriate corrective action where required. Reports can be made through multiple secure channels, with oversight by the Audit Committee to maintain transparency and uphold the highest standards of corporate governance.

Cautionary Statement

The Management, in the Management Discussion and Analysis Report, has included statements describing the Companys objectives, projections, estimates and expectations that may be considered forward-looking under applicable laws and regulations. The Management bases these statements on its current beliefs and assumptions regarding future events.

The Management acknowledges that such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. The Management identifies factors such as changes in general economic and business conditions, shifts in business strategy, variations in interest rates, inflation, deflation, foreign exchange fluctuations, competitive pressures and modifications in governmental regulations, tax laws and other statutory requirements as potential risks. The Management clarifies that it does not undertake any obligation to publicly update these forwardlooking statements, whether due to new information, future developments, or other reasons.