Mastek Limited — Q1FY27 earnings call summary

Filed 22 July 2026 · Company audio recording

North America order book up 29.8% QoQ; $25mn AI transformation deal to ramp in H2 FY27.
Q1 operating EBITDA at 15.4%; impacted by Middle East bench costs, delayed collections, and regulatory costs.
FY27 expected to outperform FY26; margin impact from ESOP and increments anticipated in Q2.
Pricing pressure noted with discounts up to 20-25% in some cases; focus on outcome-based contracts to improve margins.
Competitive pricing pressure in AI-led deals and renewals.
Subcontracting cost steady at 18.5% of revenue; ESOP cost to reduce steady-state EBITDA margin by ~0.25%.
Headcount at 4,897 (+167 QoQ), with UK adding 125 employees for new project ramps.
UK business stable with 3% QoQ growth (constant currency); healthcare and public sector demand to ramp up from Q2.