As of , Mastek Ltd (IT - Software) has a deep value score of 58/100 (rated Average). 1Y return vs Nifty 500: -29%.
Based on Q4 FY26 earnings • Updated Apr 19, 2026
What: 12-month Order Backlog: ₹2,849.2 Crore
Impact: 24.4% YoY growth
“This momentum is supported by 24.4% Y-o-Y growth in our 12-month order backlog, driven by continued strength in the UK and US Orderbook.”
What: Revenue per Employee: 12% improvement
Impact: Sustained 16.1% margin
“Our outcome focused drive on AI has helped deliver a 12% improvement in revenue per employee and helped sustain EBITDA margins at 16.1%.”
What: US Orderbook: $30 million-plus
“Our North America order book, for example, has delivered a $30 million-plus order book in this quarter, and we see sustained order book momentum.”
What: AI-assisted deals: 85+ deals
“During the quarter, we closed over 25 AI-assisted deals, taking the full-year total to 85+ deals.”
What: 12-month Order Backlog growth of 24.4% YoY
“This momentum is supported by 24.4% Y-o-Y growth in our 12-month order backlog, driven by continued strength in the UK and US Orderbook.”
What: ₹8 per share (interim) → ₹16 per share (final)
“Reflecting our continued commitment to shareholder returns, the Board has recommended a final dividend of ₹16 per share, aggregating to 480% for the year.”
Earnings deceleration risks from management commentary
Trigger: Statutory changes in labor definitions and annual appraisal cycles.
Impact: PAT impact: ₹6.4 crore (Q3 impact)
Management view: Conservative assumptions taken in books; awaiting final clarifications from the labor department.
Monitor: labor
Trigger: Government reorganization of spend towards Healthcare and Defense requiring cost savings elsewhere.
Management view: Moving to outcome-based contracts to share productivity gains.
Monitor: regulatory
Trigger: Exposure to GBP and USD revenue.
Impact: PAT impact: 17 bps margin impact
Management view: Active hedging for the next 12 months ($6.7mn and £21.5mn).
Monitor: fx
Key quotes from recent conference calls
“Sushovon, we are looking at maintaining it between 16.5% to 17% like I said earlier. So that's the range that we're comfortable with. [Previous EBITDA Margin guidance]”
“Our outcome focused drive on AI has helped deliver a 12% improvement in revenue per employee and helped sustain EBITDA margins at 16.1%. [Initiative: Lead with AI Strategy]”
“In North America, leading indicators are turning positive, supported by an execution-focused leadership team... the strengthening pipeline provides confidence in a gradual recovery. [Initiative: North America Leadership Overhaul]”
“despite absorbing the impact of annual wage revisions and labour code true-ups... EBITDA includes an impact of INR 6.4 crores on account of labour code changes. [Risk (labor): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹938.0 Crore
Why: Growth was driven by continued strength in the UK and US orderbook, improving revenue visibility despite absorbing wage revisions.
Revenue recovered sequentially after a seasonally weak Q3.
EBITDA
₹150.7 Crore
Why: Margins were sustained through AI-led productivity gains which delivered a 12% improvement in revenue per employee, offsetting wage revisions.
EBITDA margins remained flat QoQ but improved 75bps YoY.
PAT
₹106.2 Crore
Why: PAT declined sequentially due to the impact of annual wage revisions and labor code true-ups absorbed during the quarter.
Sequential PAT was impacted by one-time labor code adjustments.
Other Highlights
• Closed over 25 new AI-assisted deals in Q4, totaling 85+ for the full year.
• DSO improved to 73 days from 84 days in the previous quarter.
• Cash and cash equivalents reached ₹938.5 crore, a healthy addition of ₹139.7 crore.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
12-Month Order Backlog (INR)
₹2,849.2 Crore
Why: Driven by continued strength in the UK and US Orderbook.
Total Employee Count
4,730
Why: Sequential increase due to hiring in Data and Salesforce capabilities, while YoY decline reflects productivity focus.
LTM Attrition
17.4%
Why: Improved retention and stable talent environment.
Utilization (Net of Leave)
85.7%
Why: Slight sequential drop due to higher leaves and trainees integration.
DSO Days
73 days
Why: Emphasis on working capital efficiency and resolution of administrative delays in the UK.
UK & Europe Revenue %
66.4%
Why: Strong focus in healthcare which grew by 95% YoY in the UK.
US Revenue %
21.5%
Why: Market still evolving and recovering from previous leadership changes.
Fixed Price Revenue %
42.7%
Why: Strategic shift to outcome-based contracts to share AI-led productivity gains.
Active Clients
326
Why: Focus on larger, higher-value accounts and tail account rationalization.
New AI Deals (Quarterly)
27
Why: Translating 'Lead with AI' strategy into measurable outcomes.
Forward-looking targets from management for FY27
OPM Guidance
16.5–17%
Accelerated growth in FY27
REAFFIRMED
Guidance Changes
Dividend: ₹8 per share (interim) → ₹16 per share (final)
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +4% | +13% | Decelerating |
| PAT (Net Profit) | +31% | +9% | Stable |
| OPM | 16.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Mastek Ltd has a deep value score of 58/100 (rated Average). This score is calculated from three components
Mastek Ltd's quarterly profit (PAT) growth trajectory
Mastek Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Mastek Ltd's earnings momentum is Decelerating — growth rate is slowing.
Mastek Ltd's valuation metrics
Mastek Ltd's revenue and margin trends
Mastek Ltd's trailing twelve month (TTM) performance
Mastek Ltd key facts
Mastek Ltd shows limited deep value signals currently — score is 58/100 (Average). Monitor for improvement.
Other deep value stocks in IT - Software
IT - Software deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Mastek Ltd has 6 key growth catalysts identified from recent earnings analysis
Mastek Ltd has 3 key risks worth monitoring
In Q4 FY26, Mastek Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
