Mastek's shares surge 13% after robust Q1 results
What's the story
Mastek's shares jumped by 13.08% on Monday, hitting an intraday high of ₹2,755 per share on the BSE. The surge followed the company's robust financial results for the first quarter of FY26. Mastek reported a whopping 28.7% year-on-year (YoY) growth in net profit for Q1 FY26 at ₹92 crore, up from ₹71.5 crore in the same period last year.
Financial performance
Revenue, EBITDA and constant currency revenue
Along with the net profit, Mastek also reported a 12.5% YoY increase in revenue for Q1 FY26 at ₹914.7 crore, compared to ₹812.9 crore in Q1 FY25. The company's EBITDA stood at ₹137.3 crore, reflecting a 10.8% YoY growth from ₹123.8 crore the previous year. However, on a sequential basis, constant currency revenue witnessed its first decline after four consecutive quarters of growth with a 1.1% drop during the quarter under review.
Market resilience, reign traveled […]
UK market remains strong growth driver
The UK market, which contributes nearly 64% to Mastek's overall revenue, continued to be a strong growth driver with a 9.6% sequential increase during the quarter. The company's order book also remained resilient, with deal wins increasing by 2.5% quarter-on-quarter (QoQ) and 8.3% YoY. Despite some challenges, these factors contributed significantly to the company's financial performance in Q1 FY26.
Financial stability
Strong liquidity position and stock performance
Mastek ended the quarter with a robust ₹549 crore cash on its books, indicating a strong liquidity position. This is seen as a positive sign for future investments and growth. The company's stock has also witnessed a significant turnaround after a slow start to 2025, gaining 11.5% in May, 5% in June, and over 11% so far in July.