Mastek Ltd, the digital engineering and cloud transformation specialist, has announced a final dividend of ₹16 per share for FY25, with September 12, 2025, as the record date. The payout will be made within 30 days of shareholder approval at the upcoming 43rd Annual General Meeting (AGM).
Dividend Details
- Final Dividend: ₹16 per share (320% on face value of ₹5).
- Interim Dividend (already paid): ₹7 per share.
- Total Dividend for FY25: ₹23 per share (460%).
- Previous Year Payout: ₹19 per share (380%).
This marks a year-on-year increase in dividend distribution, reflecting both strong performance and shareholder-friendly capital allocation.
What the Record Date Means for Shareholders
The record date is the cut-off date to determine eligible shareholders for the dividend.
- Ex-dividend date: September 11, 2025 (last day to buy shares to qualify).
- Record date: September 12, 2025.
- Purchases made on or after September 12 will not qualify due to the T+1 settlement cycle.
For investors, this means that only those holding Mastek shares in their demat accounts as of September 12 will be entitled to receive the ₹16 dividend.
Mastek Q1FY26 Business Performance
Alongside its dividend announcement, Mastek’s Q1FY26 operational updates highlight a mixed performance:
Client Metrics
- New clients added: 12 in Q1FY26.
- Active clients: 323 (down from 348 in Q4FY25).
Order Book
- 12-month order backlog: ₹2,347.9 crore (US$273.8 million).
- Growth: +8.3% YoY (₹2,168.8 crore in Q1FY25) and +2.5% QoQ (₹2,290.9 crore in Q4FY25).
Workforce
- Total employees: 4,824 (down from 5,058 in March 2025).
- India-based (offshore): 3,262 employees.
- Attrition rate: 19.5% in Q1FY26 vs. 19.3% in Q4FY25.
Financial Position
- Cash, equivalents & mutual fund investments: ₹549.0 crore (down from ₹622.2 crore in Q4FY25).
The data shows steady backlog growth but challenges on the talent side, with attrition slightly inching up and overall headcount declining.
Market Takeaways
- Attractive Dividend Yield: With a total FY25 dividend of ₹23 per share, Mastek demonstrates strong shareholder returns.
- Solid Order Pipeline: Continued growth in the 12-month order backlog signals demand resilience despite macroeconomic headwinds.
- Operational Watchpoints: Declining workforce and rising attrition could pressure delivery capacity if not managed effectively.
- Cash Position: While healthy, the decline in reserves indicates higher utilization, possibly linked to investments, expansion, or shareholder payouts.
Summary
- Dividend Update: Mastek declares ₹16 final dividend; record date September 12.
- Total FY25 payout: ₹23 per share, up from ₹19 last year.
- Business Update:
- Order backlog at ₹2,348 crore (+8.3% YoY).
- 12 new clients added; active clients down to 323.
- Workforce reduced to 4,824; attrition at 19.5%.
- Cash reserves at ₹549 crore vs. ₹622 crore in Q4FY25.
The dividend hike underlines Mastek’s commitment to rewarding shareholders, even as the company navigates operational challenges and positions itself for steady growth in FY26.
Disclaimer:
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