IT major Mastek Q4 profit slips 2 pc sequentially; declares Rs 16 dividend
Mumbai, April 17
Mastek on Friday reported a 2 per cent decline in consolidated net profit for the fourth quarter ended March 2026 at Rs 106.15 crore, compared to Rs 108.35 crore in the previous quarter.
The company's revenue from operations increased 3.6 per cent sequentially to Rs 938 crore, up from Rs 905.68 crore in the December quarter, according to its stock exchange filing.
However, earnings before interest and tax (EBIT) fell 1 per cent to Rs 132.28 crore from Rs 134.13 crore, while margins contracted to 14.1 per cent from 14.8 per cent.
On a year-on-year basis, the performance remained strong, with profit after tax rising 23.6 per cent from Rs 81.07 crore reported in the same quarter previous financial year, as per the filing.
For the full financial year 2025-26, the company posted a profit after tax of Rs 404 crore, up from Rs 375.83 crore in the previous year.
The board of directors has recommended a final dividend of Rs 16 per equity share for the financial year.
Ahead of the results announcement, Mastek shares closed 2.85 per cent higher at Rs 1,746 apiece, outperforming the Nifty, which gained 0.65 per cent during the session.
The stock has rallied 10.45 per cent over the past week and nearly 19.91 per cent in the last one month.
However, it remains under pressure on a longer-term basis, declining 17.03 per cent so far this year and 24.84 per cent over the past year.
Mastek, a global IT services and enterprise AI provider, focuses on digital and cloud transformation solutions, including Oracle Cloud and Salesforce services.
Headquartered in Mumbai, the company serves over 400 clients across more than 40 countries, with a strong presence in the UK and North America.
— IANS
Reader Comments
Revenue up but margins down... classic story in IT right now. Everyone is fighting for deals, so pricing power is low. Still, Mastek is holding its own. The dividend declaration is a positive signal. Hope they invest in more AI solutions to boost those margins next year.
The stock is up nearly 20% in a month! 🚀 Seems like the market was expecting good news. The quarterly numbers are a mixed bag, but the yearly profit crossing Rs 400 crore is the real headline. Dividend toh icing on the cake hai!
As someone who follows the sector, the margin contraction from 14.8% to 14.1% is the key metric to watch. It suggests rising costs or competitive pressures. The strong YoY profit growth is good, but management needs to address this sequential slippage in profitability.
Good to see an Indian IT company with a strong global footprint doing well. Serving 400+ clients is no small feat. The focus on Oracle and Salesforce is smart—those are evergreen platforms. Hope they continue to grow and hire from our engineering colleges.
The article says the stock is down 17% YTD and 25% over the past year. That's a big red flag 🚩. One good quarter doesn't fix that. Investors should be cautious. The dividend is nice, but capital preservation is more important. Need to see a sustained turnaround.
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