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Informist, Monday, Jul. 20, 2026

By Diksha Singh

MUMBAI - Information Technology services company Mastek Ltd. is expected to report mixed numbers for the June quarter due to headwinds caused by the war in West Asia and artificial intelligence-led deflation in the technology vertical, according to brokerages tracking the company.

The company is expected to report a consolidated net profit of between INR 1.03 billion and INR 1.09 billion, according to estimates from three brokerages. This will be lower than the net profit of INR 1.30 billion it had reported for the March quarter but higher than the net profit of INR 920.50 million for the year-ago quarter. The highest estimate for the company's June quarter net profit is INR 1.09 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 1.03 billion from HDFC Securities Ltd.

The June quarter consolidated net sales of the IT services company are seen between INR 9.57 billion and INR 9.86 billion, according to the estimates. This is higher than INR 9.38 billion reported for the March quarter and INR 9.15 billion reported for the year-ago quarter. The highest estimate for Mastek's net sales is INR 9.86 billion by 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 9.57 billion by HDFC Securities.

The company's net profit is expected to increase on year as a result of contract wins in the UK, which should drive mid-single-digit revenue growth, Anand Rathi said. The company's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to be around INR 1.55 billion, according to Anand Rathi. The company's EBIT margin is expected to fall 22 bps on quarter to 13.9%, it added.

IT services companies are expected to start this year slowly as demand is weak and growth is expected to remain subdued, 360 One Capital said. Margins are expected to be supported by favourable movements in the currency. Currency tailwinds will offer some margin relief, but macroeconomic and geopolitical uncertainty are likely to limit the upside in the sector's valuation, it added.

"We continue to expect sustained headwinds over the near-term, with AI-related deflationary impact expected to sustain over the next couple of years. Newer revenue streams are likely to be insufficient to offset this impact, at least in the near-term," 360 One Capital said.

Investors will watch out for execution and ramp up of large UK government deals and conversion of the public sector pipeline. AI-led productivity benefits translating into sustained margin expansion and higher revenue per employee and US growth recovery under the new leadership team and traction in enterprise accounts will also be watched.

Mastek will announce its June quarter earnings Tuesday. Monday, Mastek's shares closed 1.6% lower at INR 1,744.20 per share on the National Stock Exchange. The stock is flat since the company announced its March earnings on April 17.

Of the four brokerage reports on the company available with Informist, three have a "buy" recommendation on the stock with a target price of INR 2,713 per share, which is 55% higher than the current market price and one has a "sell" recommendation with a target price of INR 1,600.

Following are the Apr-Jun earnings estimates for Mastek from three brokerages, in descending order of the estimate of net profit, in INR billion:

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IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pankaj Aher

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