Mastek Limited — Q2FY27 earnings call summary

Filed 28 October 2026 · Official transcript

Order backlog softness due to delayed project starts in US and UK; large $100mn+ deals in pipeline
Margin drop due to salary hikes, ESOPs (190 bps), and mix shift to low-margin UK projects; medium-term margin recovery of 160 bps targeted
UK revenue +4.1% q-q; Financial Services +16%; Healthcare lagged due to project delays, expected to improve in H2
Healthcare softness in UK due to contract timing gaps; expected rebound in Q3/Q4
North America growth expected to rebound in H2FY27; Healthcare & Life Sciences remain key verticals
Project business share increased from 40% to 44-45%, mostly fixed bid contracts
Management confident FY27 will outperform FY26 despite geopolitical uncertainties
Subcon cost steady at ~20%; short-term increase possible due to UK localization/security demands