Mastek Ltd reported its Q4 FY25 earnings on Friday, showcasing a mixed performance marked by strong revenue growth but a notable decline in net profit. The company posted a 14% year-on-year fall in net profit at Rs 81 crore, compared to Rs 94.4 crore in the same quarter last year, despite steady execution across geographies.
On the positive side, Mastek’s revenue rose 16.1% YoY to Rs 905.4 crore, up from Rs 779.7 crore in Q4 FY24. Sequentially, the company registered a 4.1% QoQ revenue growth, reflecting continued demand across its service lines. EBITDA also improved 11% YoY, coming in at Rs 138.8 crore versus Rs 125.1 crore a year ago, pointing to operational efficiency gains.
However, the bottom-line decline suggests pressure on margins or elevated costs during the quarter. The company’s net profit fell by 14%, which contrasts with its otherwise strong top-line momentum.
In a shareholder-friendly move, the board declared a final dividend of Rs 16 per share (320%), reaffirming confidence in the company’s long-term outlook.
CEO Umang Nahata noted: “We are pleased to report a steady performance in Q4FY25, delivering a revenue growth of 4.1% Q-o-Q and 16.1% Y-o-Y in rupee terms. We closed FY24-25 with strong annual revenue and PAT growth of 13.1% and 20.9% respectively, driven by disciplined execution across geographies and innovation across all service lines.”
On the business front, Mastek added 11 new clients in Q4 FY25, although total active clients fell slightly to 348, down from 351 in Q3 FY25.
Overall, while the profit drop poses short-term concerns, the company’s healthy revenue growth, strong client additions, and dividend payout underscore management’s focus on sustainable expansion and shareholder returns.
