Mastek523704Earnings call transcript

Q2FY27 earnings call: revenue $107.3 million, EBITDA 14.4%, over 40% of deals AI-led

Mastek held its Q2FY27 earnings call on October 26, 2026; the transcript is now shared with the exchanges.

By ScoutQuest · Wed 28 Oct 2026, 10:30 AM IST · 2 min read

40%Share of deals in the quarter that were AI deals

Share of deals in the quarter that were AI deals: more than 40%.

Revenue: $107.3 million, up 2.4% QoQ in constant currency
EBITDA Margin: 14.4%, lower than Q1 mainly on a salary hike
12-month Order Backlog: up 2.3% YoY; management flags some order book softness

Revenue: $107.3 million, a growth of 2.4% quarter on quarter in constant currency terms.
EBITDA margin: 14.4%, lower than Q1 mainly because of a salary hike, as explained by management.
12-month order backlog: up 2.3% year on year, with management flagging some softness in the order book.

UK: revenue grew 4.1% in the quarter. Financial Services, described as a strong sub-sector, grew more than 16%, and the public sector stayed stable.
UK Healthcare & Life Sciences lagged because some project starts and orders were right-shifted. Some of those orders were concluded after the quarter closed, and management expects the numbers to start improving in H2.
North America: strong deal momentum, with the region's total order backlog up more than 50% year on year, helped by AI-led transformation deals.
APAC and Middle East: some old standing contracts were signed, giving a bounce back in revenue, but the overall Middle East outlook remains uncertain.

The UK saw a change of prime minister. Some contracts that were to be decided have been put on hold or canceled, and management hopes they are revived after the new government's budget is finalized.
That made Q2 a softer quarter for the UK order book.
Middle East uncertainty, particularly the situation in Saudi Arabia, is being watched closely.

More than 40% of deals in the quarter were AI deals, spanning AI transformation, AI foundation and AI productivity.
A strategic partnership was signed with Innovaccer in Healthcare & Life Sciences, positioned as one of its largest partners globally.
A new "Service-as-a-software" offering was launched, and the first few deals on it have been closed. Mastek says it has also moved its own CRM, procurement, recruitment and accounts payable systems to this model.
Cyber has been added to the AI foundation offering, with the first significant wins in UK public sector.
New frameworks were landed in energy and utilities in the UK-Europe region, opening a new sector front.

A North America Service-as-a-software deal to replace a skilled nursing facility's core SaaS platform.
A North America life sciences deal won on AI-led productivity, replacing an incumbent.
A multi-year UK central government cybersecurity and cyber assurance contract.
An Oracle-based process transformation deal for a UK police department, using the company's ADOPT AI platform.
An APAC and Middle East healthcare process transformation deal to modernise a legacy application.

Healthcare & Life Sciences revenue is expected to start improving as H2 progresses.
Progress on the energy and utilities sector will be reported as the year goes on.
On the UK, healthcare is expected to stay a focus and social care may become another, and the company is aligning to the new government's direction.
The opening remarks carried a standard caution that forward-looking statements involve risks and uncertainties.

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