Mastek Q2 FY27: Revenue ₹1,019 Cr, PAT ₹106 Cr

Key numbers from the September quarter

Mastek reported consolidated results for the quarter ended September 30, 2026 (Q2 FY27), showing steady revenue growth but pressure on operating profitability. Consolidated revenue from operations came in at ₹1,018.68 crore. This was up 8.3% year-on-year (YoY) and 3.4% quarter-on-quarter (QoQ). Consolidated profit after tax (PAT) stood at ₹105.67 crore, up 8.4% YoY but roughly flat on a sequential basis with a 0.2% decline QoQ. Profit before tax (PBT) was reported at ₹141.46 crore for the quarter. The quarter also included net exceptional gains, which meaningfully influenced the reported profit growth.

Revenue growth was steady, with a clear QoQ step-up

The company’s Q2 revenue of ₹1,018.68 crore was higher than Q1 FY27 revenue of ₹985.25 crore. In another disclosure, the same movement was described as a rise from ₹9.85 billion to ₹10.19 billion, which aligns with the ₹985 crore to ₹1,019 crore range. The sequential increase was stated as approximately 3.43% to 3.4% QoQ. The company linked the revenue progression to execution in digital engineering and cloud transformation service lines. It also cited continued activity in digital transformation and enterprise AI engagements as a support factor for sequential growth.

Reported profit rose, but exceptional items played a major role

Mastek’s YoY PAT growth was aided by a net exceptional gain of ₹10.72 crore in Q2 FY27. The exceptional line was driven by a ₹47.26 crore gain on the sale of the company’s Chennai property. This was offset by a ₹10.64 crore restructuring charge and ₹25.90 crore of bad debts written off. The company noted there was no equivalent one-off item in the year-ago quarter, which makes YoY comparisons on headline profit less clean. As a result, the reported profit print looks stronger than what the operating trend alone would suggest.

Adjusted PAT indicates underlying profitability lagged revenue growth

After stripping out the exceptional items, adjusted PAT was estimated at roughly ₹94.95 crore. On this adjusted basis, profit was down about 2.6% YoY even though revenue rose 8.3% YoY. The divergence signals that costs and margins moved against the company during the quarter. The quarter therefore combined topline growth with weaker underlying profit conversion. This difference between reported and adjusted performance is central to interpreting the quarter’s earnings.

Operating margin compression was the key pressure point

The company attributed the gap between revenue growth and adjusted profit performance primarily to the operating line. Consolidated operating margin on an EBITDA basis compressed to roughly 14.35% in Q2 FY27. This compared with 15.47% a year ago and 15.36% in the previous quarter. In a separate release, the EBITDA margin was also referred to as 14.4%, consistent with the same broad level. The margin move helps explain why profit did not scale in line with revenue during the quarter. It also provides context for why exceptional gains had an outsized role in the reported YoY profit increase.

Employee costs rose faster than revenue

Employee benefit expenses increased 11.0% YoY to ₹548.05 crore in Q2 FY27. This growth rate was higher than the 8.3% YoY revenue growth reported for the quarter. Management had earlier flagged ESOP cost step-up of $400,000 to $500,000 per quarter from Q2, annual increments, and regulatory costs as margin headwinds on the Q1 FY27 call. The Q2 numbers show the effect of that cost momentum. With operating margins lower versus both the previous quarter and the year-ago period, cost intensity remained an important theme.

Standalone numbers are not comparable to consolidated scale

On a standalone basis (parent-only India entity), Mastek reported PAT of ₹62.22 crore on revenue of ₹237.52 crore. The standalone results also included a larger net exceptional gain of ₹43.78 crore. The company highlighted that most group revenue sits in overseas subsidiaries, so the standalone base is much smaller. Because of the scale difference and the heavier impact of exceptional items, standalone performance should not be directly compared with consolidated profitability. For investors, the consolidated numbers remain the primary read-through for operating performance.

Corporate and disclosure trail around the quarter

Mastek had informed exchanges that a board meeting was scheduled for October 23, 2026 to consider and approve unaudited financial results for the quarter and half year ended September 30, 2026. Exchange updates also referenced investor presentation and press release disclosures under Regulation 30 (LODR). One of the updates noted that the company signed 53 AI deals alongside the Q2 operational update. Separately, the data provided also notes that the company declared a dividend of ₹16.00 on August 31, 2026. These disclosures frame the timing and the broader communication around the quarter’s results.

Data table: Consolidated Q2 FY27 snapshot

Market impact: what the quarter changes for investors

The quarter delivered a clear positive on revenue momentum, with sequential growth from ₹985.25 crore to ₹1,018.68 crore. But profitability optics depended heavily on exceptional items, with a net exceptional gain of ₹10.72 crore supporting reported PAT. The adjusted PAT estimate of ~₹94.95 crore, down about 2.6% YoY, highlights the degree to which margin compression mattered. EBITDA margin slipping to ~14.35% from 15.47% a year earlier provides a concrete marker of operating pressure. Employee benefit expenses rising to ₹548.05 crore, up 11.0% YoY, reinforces that cost growth outpaced revenue growth. Taken together, the market read-through is that topline execution continued, while cost and margin management became more important to watch.

Conclusion

Mastek’s Q2 FY27 results combined 8.3% YoY revenue growth and 3.4% QoQ expansion with weaker operating margins. Reported profit growth was supported by a net exceptional gain led by the Chennai property sale, while adjusted profitability did not keep pace with revenue. The company’s disclosures around the October 23, 2026 board meeting and related investor communications set the formal trail for the quarter’s unaudited results. Going forward, the key monitorable from this print remains whether operating margins stabilise after the Q2 compression noted in the quarter’s numbers.