Shares of Mastek Ltd were trading lower in Monday’s session after the company’s management indicated a cut in margin guidance during a media interaction, raising concerns over profitability outlook amid rising competitive pressures.
In a media interview, Mastek’s management highlighted that EBITDA margin guidance has been revised down to 16–16.5% for FY27 from earlier expectations of around 17%. The revision comes in the backdrop of increased competition and cost pressures, including wage hikes, which had an estimated 1–1.5% impact on margins in the March quarter.
The company, however, maintained that margins are expected to remain broadly stable within the revised band in the coming financial year, even as it navigates pricing and demand challenges.
Meanwhile, shares of Mastek were trading at ₹1,677.40, down 3.93% as of 12:03 PM on April 20. The stock has remained under pressure since morning trade, indicating that the weakness is not solely attributable to the guidance cut but also reflects broader sentiment following its recent quarterly performance.
For context, the company reported a mixed set of Q4FY26 results. Net profit declined 2% sequentially to ₹106.2 crore, while revenue rose 3.6% quarter-on-quarter to ₹938 crore. EBITDA also fell 2% to ₹215 crore, with margins contracting to 22.9% from 24.2% in the previous quarter. The board had recommended a final dividend of ₹16 per share.
The combination of modest revenue growth and declining margins, along with the lowered outlook for FY27, appears to have weighed on investor sentiment, even as the company continues to focus on maintaining operational stability in a competitive environment.