Mastek Limited (MASTEK) AI Stock Analysis

• Market Cap: ₹46.40B
• Dividend Yield: 1.62%
• Average Volume (3M): 14.29K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.39
• Revenue Growth: 11.91%
• EPS Growth: -1.02%
• Country: IN
• Employees: 1,315
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 34.85
• Shares Outstanding: 30,991,373
• 10 Day Avg. Volume: 5,598
• 30 Day Avg. Volume: 14,289
• PEG Ratio: 0.72
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 17.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 131.78
• Revenue Forecast (FY): ₹38.12B

• Rating: 70 Outperform
• Price Target: ₹1,647.00 ▼(-22.16% Downside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is driven by strong financial performance (robust growth, improving profitability, low leverage) and supportive valuation (moderate P/E with a dividend). These positives are partly offset by weak technicals, with the stock below all major moving averages and bearish momentum indicators.

Positive Factors

Multi-year Revenue Growth

A ~22% multi-year revenue CAGR indicates durable demand and successful client acquisition in core verticals. Sustained top-line growth supports scale in delivery, investments in platforms and talent, and creates a base for repeatable recurring services over the next 2-6 months and beyond.

High & Improving Margins

High gross margins and rising net margin reflect pricing power and efficient project delivery. Margin expansion implies structural operational strength—better utilization, higher-value work mix and cost control—that supports cash generation and reinvestment capacity over the medium term.

Conservative Leverage and ROE

Low leverage and a strong equity ratio give the company financial flexibility to fund growth, absorb downturns, or pursue acquisitions. Improved ROE indicates effective capital deployment, supporting durable shareholder returns and strategic optionality over multiple quarters.

Negative Factors

Free Cash Flow Volatility

Volatile and declining free cash flow in 2025 reduces predictability of capital allocation. For a services firm, timing of project billing and working capital swings can materially affect FCF, limiting steady investments, dividends or buybacks and posing a medium-term funding risk.

EPS Contraction

Negative EPS growth indicates profitability pressure despite revenue gains. This suggests operating leverage, margin mix shifts, or rising costs are offsetting top-line strength, which can constrain sustainable earnings improvement and investor returns over coming quarters.

Revenue Mix Sensitivity

Business performance and margins depend heavily on shifting mix toward higher-value digital and cloud work. If clients revert to lower-margin maintenance or new project wins stall, revenue quality and margins could deteriorate, creating a structural risk to earnings sustainability.

Mastek Limited Business Overview & Revenue Model

Company Description

Mastek Limited, together with its subsidiaries, provides enterprise technology solutionsin India, the United Kingdom, Europe, the United States, the Middle East, and internationally. The company offers business and technology services comprising application development, ERP implementation and cloud migration, digital commerce, application support and maintenance, business intelligence and analytics, agile consulting, testing and assurance, and legacy modernization. It also provides data warehousing and enterprise digital transformation services. The company serves government, healthcare, retail, financial services, and other sectors. Mastek Limited was incorporated in 1982 and is based in Mumbai, India.

How the Company Makes Money

Mastek makes money primarily by selling IT services to enterprises and government bodies. Its core revenue model is services-led and typically includes: (1) Project-based delivery: fixed-price or time-and-materials engagements where Mastek designs, builds, modernizes, or implements software systems (e.g., custom application development, system integration, digital transformation programs, cloud migrations). Revenue is recognized as work is delivered per contract terms. (2) Recurring support and managed services: ongoing application maintenance, production support, and managed operations, generally billed on monthly/quarterly retainers, consumption-based arrangements, or dedicated team models, creating more predictable recurring revenue. (3) Platform/enterprise solution work: implementation and customization services around enterprise platforms and cloud ecosystems; Mastek earns service fees for consulting, configuration, integration, and ongoing enhancement work associated with these platforms. (4) Consulting and digital engineering services: advisory, data/analytics, and engineering services that are billed either as standalone consulting assignments or as part of larger transformation programs, typically on time-and-materials or milestone-based contracts. Key factors influencing earnings include long-term client relationships (supporting repeat work and renewals), the mix of higher-value digital/cloud programs versus traditional maintenance, utilization and bill rates of delivery teams, and the scale of multi-year contracts—especially in public sector accounts. Specific, named partnerships and their direct revenue contribution: null.

Mastek Limited Financial Statement Overview

Summary

Strong multi-year revenue growth (~22% CAGR) and improving net margin (10.9% vs. 10.1%) support a high score. Balance sheet leverage is conservative (debt-to-equity 0.24) with improving ROE (15.3%). Cash flow conversion is solid (operating cash flow to net income 1.05; free cash flow to net income 1.00) but free cash flow declined in 2025, tempering the score.

Income Statement

Mastek Limited has demonstrated robust revenue growth with a CAGR of approximately 22% over the past five years. The gross profit margin has been consistently healthy, reaching 46.2% in 2025. Net profit margin has improved to 10.9% from 10.1% in 2024, showing effective cost management. The EBIT and EBITDA margins are strong, at 46.2% and 15.9% respectively, indicating efficient operational performance.

Balance Sheet

The company's financial stability is solid with a debt-to-equity ratio of 0.24 in 2025, reflecting a conservative leverage strategy. Return on equity (ROE) has improved to 15.3%, indicating effective use of shareholder funds. The equity ratio stands at 63.7%, suggesting a strong capital structure with a significant portion of the company's assets financed by equity.

Cash Flow

Mastek's free cash flow growth has been volatile, with a decrease in 2025 compared to 2024. However, the operating cash flow to net income ratio remains healthy at 1.05, indicating strong cash generation relative to net profits. The free cash flow to net income ratio is also favorable at 1.00, demonstrating solid cash flow conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.35B	34.55B	30.55B	25.63B	21.84B	17.22B
Gross Profit	5.39B	7.42B	6.86B	5.85B	5.94B	4.43B
EBITDA	6.08B	5.49B	5.19B	5.19B	4.98B	3.92B
Net Income	3.65B	3.76B	3.00B	2.93B	2.95B	2.09B
Balance Sheet
Total Assets	40.34B	38.63B	36.85B	31.41B	24.88B	22.96B
Cash, Cash Equivalents and Short-Term Investments	7.06B	6.22B	4.59B	2.64B	7.82B	8.01B
Total Debt	5.44B	5.83B	5.19B	4.03B	2.03B	2.73B
Total Liabilities	13.57B	14.01B	15.98B	13.66B	12.66B	12.55B
Stockholders Equity	26.77B	24.62B	20.87B	16.83B	10.71B	8.59B
Cash Flow
Free Cash Flow	1.18B	3.75B	3.89B	755.70M	2.37B	2.75B
Operating Cash Flow	1.39B	3.95B	4.20B	1.08B	2.73B	2.87B
Investing Cash Flow	-328.40M	-2.75B	-2.56B	-7.37B	-201.50M	1.81B
Financing Cash Flow	-1.28B	-568.50M	18.30M	925.70M	-1.28B	-1.18B

Mastek Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2115.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MASTEK, the sentiment is Negative. The current price of 2115.95 is above the 20-day moving average (MA) of 1608.60, above the 50-day MA of 1866.93, and below the 200-day MA of 2207.90, indicating a bearish trend. The MACD of -103.56 indicates Negative momentum. The RSI at 25.46 is Positive, neither overbought nor oversold. The STOCH value of 13.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MASTEK.

Mastek Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MASTEK	70 Outperform	₹46.40B	14.66	―	1.62%	11.91%	-1.02%
SAKSOFT	68 Neutral	₹16.92B	21.87	―	0.42%	21.17%	27.66%
RSYSTEMS	62 Neutral	₹31.61B	32.84	―	3.06%	8.36%	36.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SILVERTUC	58 Neutral	₹14.03B	63.12	―	0.06%	16.93%	36.77%
SASKEN	54 Neutral	₹15.30B	74.37	―	1.83%	77.13%	-39.91%

Mastek Limited Corporate Events

Mastek Schedules One-to-One Meets With Institutional Investors in Mumbai

Mastek Limited has scheduled one-to-one analyst and institutional investor meetings in Mumbai on March 17, 2026, with Avendus Spark Institutional Equities and Emkay Global Financial Services. Discussions will focus on industry and company developments already in the public domain, and the company emphasizes that no unpublished price-sensitive information will be shared, underscoring its adherence to regulatory disclosure norms and engagement with the investment community.

Mastek to Hold One-on-One Virtual Meet With HDFC AMC on March 5

Mastek Limited has informed the stock exchanges that it will hold a one-to-one virtual analyst and institutional investor meeting with HDFC Asset Management Company on March 5, 2026, at 3:30 p.m. The discussion will focus on industry and company-specific developments that are already in the public domain, and the company has clarified that no unpublished price-sensitive information will be shared and that the schedule may change due to exigencies.

The disclosure under SEBI’s listing regulations underscores Mastek’s ongoing engagement with the institutional investor community and its efforts to maintain transparency through formal communication channels. By restricting discussions to publicly available information, the company aims to ensure compliance with securities regulations while keeping key stakeholders informed about its operating environment and business developments.

Mastek Schedules Virtual Investor Meet With 360 One Asset Management

Mastek Limited has notified the stock exchanges that it will host a virtual analyst and institutional investor meeting with 360 One Asset Management on February 24, 2026. The single-investor interaction will focus on industry and company developments that are already in the public domain, with the company emphasizing that no unpublished price-sensitive information will be shared and that the schedule may change subject to exigencies.

By formally disclosing the meeting under SEBI’s listing regulations and reiterating compliance on handling sensitive information, Mastek underscores its adherence to corporate governance norms and transparency obligations toward market participants. The disclosure is also made available on the company’s website, reinforcing equal access to information for all stakeholders and signaling ongoing engagement with the institutional investor community.

Mastek Schedules Virtual Analyst Meet With ICICI Prudential AMC

Mastek Limited has announced that it will hold a virtual analyst and institutional investor meeting with ICICI Prudential Asset Management Company on February 21, 2026, at 2:30 p.m. The discussion will cover industry and company-specific developments that are already in the public domain, with the company emphasizing that no unpublished price-sensitive information will be shared and that details of the meeting are available on its website.

The scheduled engagement underscores Mastek’s continued investor-relations efforts and transparency commitments as a listed IT services company. The company has also noted that the timing or conduct of the meeting may change due to exigencies on the part of either the investor or Mastek.

Mastek Expands Leeds Hub to Drive AI-Led Growth in the UK

Mastek (UK) Limited has expanded its Leeds office, underscoring the Indian-headquartered group’s long-term commitment to the UK and its strategic focus on AI-led digital transformation. The enlarged 100-seat facility, opened by Mastek’s UKI & EU president Abhishek Singhh and West Yorkshire mayor Tracy Brabin, is designed to scale further as client demand for cloud, data and AI solutions accelerates.

The move strengthens Mastek’s footprint in the North of England and aligns with regional plans to build a digital innovation cluster and create high-quality technology jobs. By deepening collaboration with local partners, universities and organisations, Mastek aims to boost India-UK cooperation in digital innovation and AI skills, positioning itself as a key enabler of public-sector and enterprise transformation in the UK.

Mastek Posts Audio Recording of Q3 FY26 Earnings Call for Investors

Mastek Limited has notified the stock exchanges that it has made available an audio recording of its earnings conference call with investors and analysts. The call covered the company’s unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with access provided via an online link, underscoring Mastek’s ongoing efforts toward transparent and timely financial communication with market participants.

Mastek Board Clears Q3 FY26 Results, Declares 160% Interim Dividend

Mastek Limited’s board has approved the unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, prepared under Indian Accounting Standards, and will publish an extract of these results in newspapers as well as on the company’s website in line with SEBI listing regulations. The board has also declared an interim dividend of Rs 8 per equity share (160% of the Rs 5 face value) for FY 2025-26, with shareholders on the register as of 30 January 2026 eligible for payment on or before 17 February 2026, underscoring the company’s ongoing capital return policy and providing income visibility for investors.

Mastek Board Clears Q3 FY26 Results, Declares 160% Interim Dividend

Mastek Limited’s board has approved the unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, prepared under Ind AS, and will publish the results in line with SEBI listing regulations and host them on its website. The board also declared an interim dividend of Rs 8 per equity share (160% of the Rs 5 face value) for FY 2025-26, payable on or before 17 February 2026 to shareholders on record as of 30 January 2026, underscoring continued capital return to investors.

Mastek Board Clears Q3 FY26 Results, Declares Rs 8 Interim Dividend

Mastek Limited’s board has approved the unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, prepared under Indian Accounting Standards, and will publish an extract of these results in newspapers and on the company’s website in line with listing regulations. Alongside the results, the board declared an interim dividend of Rs. 8 per equity share (160% on a face value of Rs. 5) for FY 2025-26, payable on or before 17 February 2026 to shareholders on record as of 30 January 2026, underscoring continued shareholder payouts and signaling confidence in the company’s financial performance.

Mastek Board Clears Q3 FY26 Results, Declares Rs 8 Interim Dividend

Mastek Limited’s board has approved the unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, prepared under Ind AS, and will publish extracts in newspapers and on the company’s website in line with SEBI listing requirements. The board also declared an interim dividend of Rs 8 per equity share (160% of the Rs 5 face value) for FY 2025-26, to be paid on or before 17 February 2026 to shareholders of record as of 30 January 2026, underscoring the company’s continued capital return to investors following its latest financial performance review.

Mastek Files Q3 FY26 Unaudited Results Press Release and Investor Presentation

Mastek Limited has notified stock exchanges that it has released a press statement and investor presentation detailing its unaudited financial results for the third quarter and nine-month period ended 31 December 2025. The disclosures, which will be made available on the company’s website, signal ongoing financial transparency to investors and regulators, though no specific performance figures or strategic updates are provided in the announcement itself.

Mastek Publishes Q3 FY26 Unaudited Results Investor Presentation

Mastek Limited has released a press note and investor presentation detailing its unaudited financial results for the quarter and nine months ended 31 December 2025, and has shared these materials with the stock exchanges. The disclosures, which will also be accessible on the company’s website, are intended to update investors and other stakeholders on the company’s recent financial performance and operating trajectory, underscoring its ongoing engagement with capital markets and regulatory transparency requirements.

Mastek to Voluntarily Wind Up Non-Material Malaysian Step-Down Subsidiary

Mastek Limited has initiated the process of voluntary winding up of Mastek Systems (Malaysia) Sdn. Bhd., a step-down subsidiary incorporated in Malaysia. The unit contributed only 0.27% of Mastek’s consolidated turnover and 0.42% of consolidated net worth in the year ended 31 March 2025, and the company has clarified that the Malaysian subsidiary is not a material entity and that its winding up will not affect Mastek’s overall consolidated revenue, business, or profitability. The move appears to be a portfolio rationalisation step with limited operational or financial impact, and completion of the winding-up process remains subject to local regulatory approvals.

Mastek Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Mastek Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate, issued by its registrar and share transfer agent KFin Technologies Limited, confirms that details of securities dematerialized and rematerialized during the quarter have been duly furnished to all stock exchanges where Mastek’s shares are listed, underscoring the company’s adherence to regulatory requirements and transparency in its shareholding records.

Mastek Schedules Virtual Investor Meet with Renaissance Investment on December 23

Mastek Limited has announced that it will hold a virtual analyst and institutional investor meeting on December 23, 2025, with Renaissance Investment, to discuss industry trends and company-specific developments that are already in the public domain. The company emphasized that no unpublished price-sensitive information will be shared during this single-investor interaction, underscoring its adherence to SEBI’s disclosure regulations and its ongoing engagement with the investment community via transparent, regulated communication channels.

Mastek Schedules Virtual Investor Meet with Nuvama Asset Management on Dec 22

Mastek Limited has announced that it will hold a virtual single-investor meeting with Nuvama Asset Management on December 22, 2025, to discuss industry and company-specific developments that are already in the public domain. The company emphasized that no unpublished price-sensitive information will be shared during this analyst and institutional investor interaction, underlining its compliance with SEBI’s disclosure regulations and its ongoing engagement with the investment community.

Mastek Schedules Virtual Investor Meet with Carnelian Asset Management

Mastek Limited has announced that it will hold a virtual analyst and institutional investor meeting with Carnelian Asset Management and Advisors on December 19, 2025, to discuss industry trends and company-specific developments already available in the public domain. The company emphasized that no unpublished price-sensitive information will be shared during this single-investor interaction and that details of the meeting are also available on its website, underscoring its adherence to SEBI disclosure regulations and commitment to transparent engagement with the investment community.