Mastek Q2 FY27: PAT ₹105.7 Cr (consol), but adjusted profit flat YoY as margins compress

Mastek's consolidated revenue for Q2 FY27 (quarter ended September 30, 2026) came in at ₹1,018.68 Cr, up 8.3% YoY and 3.4% QoQ — squarely within the ₹1,010-1,030 Cr Street range flagged in our pre-result preview. Consolidated PAT of ₹105.67 Cr looks like an 8.4% YoY gain on the surface, but it is inflated by a net exceptional gain of ₹10.72 Cr (a ₹47.26 Cr gain on the Chennai property sale, offset by ₹25.90 Cr of bad debts written off and a ₹10.64 Cr AI-led restructuring cost). Stripping that out, adjusted PAT is roughly ₹97.7 Cr — essentially flat YoY (+0.2%) and slightly down QoQ from ₹105.9 Cr — undershooting the preview's ₹105-115 Cr normalized PAT range. On an adjusted basis this is a miss on profitability even as revenue tracked Street expectations. Margins explain the gap: EBITDA margin came in around 15.5% of revenue, at the top of the preview's 14.5-15.5% band, but the EBIT-equivalent margin (profit before exceptional items and tax, ₹130.74 Cr) was 12.8% of revenue, down from a segment-level operating margin of roughly 14.6% both sequentially and YoY. That compression is exactly what management flagged on the Q1 call — ESOP costs of $400-500k/quarter from Q2, the annual increment cycle landing in Q2, and regulatory/labour-code costs — materialising in this quarter's numbers rather than being deferred. Standalone results (revenue ₹237.5 Cr, PAT ₹62.2 Cr) book the same Chennai property gain more directly, making the standalone PAT print far less representative of underlying trends than consolidated — readers should treat the standalone jump as exceptional-item-driven, not operational. The quarter's other developments — the ISG partnership award with CORT (Oct 12), a new Oracle Cloud deal win via a UK subsidiary with Staffordshire Council (Oct 8), and the AI-native SaaS strategy launch (Oct 5) — are incremental deal-pipeline proof points consistent with the 25% YoY order-backlog growth management has cited, though none register as a quantifiable number in this result. No separate management press release/MD&A was included with this filing to cross-check against. Against FY27 guidance of revenue and profit exceeding FY26 (₹3,698.75 Cr revenue, ₹404.00 Cr PAT), H1 FY27 stands at ₹2,003.93 Cr revenue and ₹211.55 Cr PAT — an annualised run-rate of roughly ₹4,008 Cr revenue (+8.4%) and ₹423 Cr PAT (+4.7%), keeping the company on track but with a thinner profit cushion than the revenue trajectory suggests, given the margin headwinds materialising as guided. The next checkpoint is the Q2 earnings call on October 26, 2026.