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CERTIFIED PARTNERSHIP DEPTH WITH ORACLE CLOUD AND SALESFORCE TRANSLATES TO ROBUST
REPEAT ORDERS AND SUSTAINED ORDER BACKLOG EXPANSION

Mastek's Oracle practice spans 2,000+ certified consultants and 1,300+ implementations across 40 countries,
with independent recognition from Gartner, Everest Group, ISG, and Forrester, a combination few mid-sized
Indian IT peers can match. Post go-live, Oracle clients generate a durable managed services tail lasting five to
seven years, that shows up in its 96.4% repeat order ratio and could explains its part in the Rs. 2,849 crore order
backlog, up 24.4% YoY in USD terms. On the Salesforce side, Mastek holds Summit Partner status which is the top
tier of the program, built through the 2022 acquisition of MST Solutions. This positioning is becoming more
strategically valuable as Salesforce pushes Agentforce, its AI agent platform, to existing enterprise clients, with
Summit-tier partners serving as the primary implementation channel for those rollouts. Mastek's 80+ pre-built AI
agent assets under its ADOPT AI framework give it a credible and differentiated entry point into this emerging
deployment cycle across its existing Salesforce client base.

AI-LED ORDER WINS AND REVENUE MODEL SHIFT TOWARD OUTCOME-BASED CONTRACTS TO
STRUCTURALLY EXPAND MARGINS

The ADOPT AI framework with 80+ AI agent assets, 100+ deployed use cases, proprietary tools embedded across
delivery, generates up to 40% efficiency gains in engineering delivery. The increase in time efficiency has led
Mastek to change its revenue model from Billable hours to Fixed price contracts. This reduces employee costs,
and the time efficiency directly impacts the margins to expand. The shift is already picking up: AI deal bookings
went from Rs. 65.8 crore in Q2 FY26 to Rs. 258.3 crore in Q4 FY26, a near 4x run-rate in nine months, with Data,
Automation & AI growing from 7.2% of revenue in FY24 to 12.4% in Q4 FY26. EBITDA has held at ~15.8% as AI
investments were expensed ahead of the revenue benefit. As fixed-price contracts scale, management's 17%+
margin target starts to look credible for the first time.

HEALTHCARE VERTICAL EMERGING AS MASTEK’S NEXT REVENUE GROWTH ENGINE

Mastek’s growing focus on healthcare is emerging as a meaningful growth driver, supported by strong demand in
the UK and rising strategic emphasis in North America. Healthcare has become a larger part of the business, with
Health & Life Sciences contributing 24.5% of FY26 industry mix versus 16.3% in FY24. The vertical is attractive
because spending is increasingly linked to cloud migration, data modernisation, inter-operability, and AI-led
transformation. Healthcare also aligns well with Mastek’s core strengths in Oracle, Salesforce, data, and
enterprise integration-led delivery. Recent wins with a US Federal health authority and the UK’s national health
authority suggest this opportunity is already converting into execution.

OUTLOOK & VALUATION

We expect Mastek Ltd. to deliver 27% growth in Revenues to Rs.4691.8 crore in FY29E from Rs.3698.8 crore in FY26. This
growth is majorly driven by the AI led growth with their revenue model transition, its specialization in Oracle Cloud and
Salesforce certifications. Furthermore, the company’s presence and relationship with the UK Public Sector has high entry
barriers. We estimate the EBITDA and PAT margins to be 16.4% and 11.6% respectively by FY29E. Our estimated EPS is Rs.
144.2, Rs. 158.2 and Rs 176.1 for FY27E, FY28E and FY29E respectively. We assign a P/E multiple of 13x to arrive at the
target price of Rs. 2290, which is an upside of ~37% from its last closing price at Rs. 1674. We initiate coverage on Mastek
Ltd. with a BUY rating, over an investment horizon of 24-30 months.

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