Mastek Limited reported resilient earnings performance for the third quarter of FY26, with profitability improving even as revenues moderated on a sequential basis. The company announced its financial results for the quarter and nine months ended December 31, 2025, highlighting stronger margins, a growing order pipeline, and continued client additions.

Q3 FY26 Financial Performance

For the December quarter, Mastek recorded revenue from operations of $102.1 million, reflecting a 5.6% quarter-on-quarter decline and a marginal 0.7% decrease compared to the same period last year. In rupee terms, operating revenue stood at ₹905.7 crore, down 3.7% sequentially but up 4.2% year-on-year.

Total income for the quarter came in at ₹926.6 crore, a 3.0% decline quarter-on-quarter, while registering a 5.4% increase over Q3 FY25.

Despite softer revenues, operating efficiency improved, with EBITDA margins expanding by 60 basis points quarter-on-quarter to 16.1%. Net profit for the quarter rose to ₹108.4 crore, marking an 11.2% sequential increase and a 14.4% year-on-year growth, supported by cost discipline and margin expansion.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company reported revenue from operations of $317.7 million, reflecting a 4.6% year-on-year increase. In rupee terms, operating revenue stood at ₹2,760.8 crore, up 8.3% year-on-year.

Total income for the nine-month period increased 9.3% year-on-year to ₹2,807.3 crore, indicating steady execution across key business segments and geographies.

Order Pipeline and Client Base Expansion

Mastek continued to strengthen its order book during the quarter. The total order backlog rose 36.6% year-on-year, while the 12-month executable backlog increased 24.3% year-on-year to ₹2,658.5 crore as of December 31, 2025. On a quarter-on-quarter basis, the 12-month backlog grew 7.0%, pointing to sustained deal wins and healthy demand visibility.

The company added 17 new clients during the quarter, taking its total active client base to 333, up from 314 in the previous quarter.

Strong Cash Position Supports Growth

Mastek’s balance sheet remained robust, with cash, cash equivalents, and investments in mutual funds amounting to ₹798.8 crore as of December 31, 2025. This compares with ₹656.1 crore at the end of September 2025, providing the company with enhanced financial flexibility to support growth initiatives.

Summary

Mastek reported a 14.4% year-on-year rise in net profit in Q3 FY26, driven by margin expansion and effective cost management, even as revenues declined sequentially. The company’s nine-month performance remained steady, supported by strong order backlog growth, new client additions, and a strengthened cash position, underscoring its operational resilience.

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