IT stock in focus after receiving contract worth ₹530 Cr for biometrics engineering

Synopsis: A company that has partnered with Microsoft, AWS, and Oracle has now secured a £49 million five-year UK Home Office biometrics engineering contract, boosting its Rs. 2,658 Cr order book.

A small-cap IT services stock focused on digital transformation, cloud, and enterprise engineering has secured a major overseas government deal. Through its UK arm, it won a £49 million five-year biometrics engineering and integration contract with the UK Home Office, strengthening its public-sector presence and improving medium-term revenue visibility. With a market cap of about Rs 5,000 Cr, Mastek Ltd saw its stock hit an intraday high of Rs 1,624, which is 2 percent higher than the previous close of Rs 1,588.5. 

News

Mastek Limited, through Mastek (UK) Limited, secured a five-year £49 million or Rs 530 Cr engineering, integration, and product-development contract with the UK Home Office biometrics portfolio. The deal includes managed specialist engineering and cloud platform services, strengthening its public-sector presence and improving long-term revenue visibility in the Europe market.

The project will support and enhance Biometrics Services Gateway and National DNA Database systems, enabling passports, visas, asylum processing, policing, and enforcement operations. Mastek expects growth from planned upgrades, deepening partnership credibility, showcasing advanced biometrics integration expertise, and reinforcing its position as a trusted AI-first digital engineering partner globally.

The Order Backlog

Mastek Ltd’s 12-month order backlog shows steady growth, rising from Rs 2,138 Cr in Q3FY25 to Rs 2,484 Cr in Q2FY26 and Rs 2,658 Cr in the latest quarter of Q3FY26. The pipeline reflects 7 percent quarter-on-quarter expansion and 24 percent YoY growth, highlighting strong deal wins, improved client demand visibility, and a healthy medium-term revenue outlook for the company.

Revenue Split

In Q3FY26, Mastek Ltd derived almost 40 percent of its revenue from Government & Education, 25 percent from Health & Life Sciences, 11 percent from Retail/Consumer, 12 percent from Manufacturing & Technology, and 12 percent from Financial Services. Compared with Q3FY25, healthcare rose sharply, retail and manufacturing declined, while government and financial services remained largely stable.

Business & Financial Overview

Mastek Ltd is an India-based IT services company specializing in digital transformation, cloud, application development, and data solutions. It serves government, healthcare, retail, and financial clients across the UK, US, and Asia-Pacific, leveraging platforms like Oracle Cloud and its proprietary frameworks to deliver enterprise modernization, analytics, and customer experience services.

Mastek Ltd maintains a robust ecosystem of strategic partnerships with global technology leaders, including Oracle, Salesforce, Microsoft, AWS, Snowflake, Databricks, ServiceNow, and UiPath, to deliver comprehensive AI-driven digital and cloud transformation solutions.

In the latest quarter the company saw a YoY revenue growth of 4 percent, going from Rs 870 Cr in Q3FY25 to Rs 906 Cr in Q3FY26, while the QoQ went down by 4 percent from Rs 940 Cr in Q2FY26. The YoY Net Profits growth is at 14 percent, going from Rs 95 Cr in Q3FY25 to Rs 108 Cr in Q3FY26, while the QoQ growth stood at 11 percent from Rs 97 Cr in Q2FY26.

The company has a 3 year sales CAGR of 17 percent, while the TTM is at 10 percent. The company’s 3 year profit CAGR is at 9 percent, while the TTM number is at 2 percent. The company also has a ROCE of 17 percent and a ROE of 16 percent.

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