The order, received on May 30, 2026, comprises a transfer pricing addition of ₹90.95 crore under Section 92CA(3) of the Income Tax Act, 1961, and an addition of ₹32.63 crore under domestic tax laws. The Income Tax Department has also initiated penalty proceedings under Section 270A.
Mastek said the computation sheet attached to the order contains certain apparent errors, including the computation of tax liability at a higher rate, the non-allowance of foreign tax credit, and the non-grant of credit for advance tax paid by a subsidiary that was amalgamated with the company.
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The company said it intends to file objections and responses with the Income Tax Appellate Authorities within the prescribed timelines. Mastek added that it does not envisage any material financial implications at this stage and expects no impact on its financials, operations, or other activities arising from the order.
Fourth Quarter Results
Mastek reported a 2% quarter-on-quarter decline in net profit at ₹106.2 crore for the fourth quarter, compared with ₹108.4 crore in the previous quarter. Revenue for the quarter rose 3.6% sequentially to ₹938 crore from ₹906 crore. EBITDA declined 2% to ₹215 crore from ₹219 crore on a quarter-on-quarter basis, while margins stood at 22.9% compared with 24.2% in the previous quarter.
Mastek’s board of directors has recommended a final dividend of 320% or ₹16 per equity share of face value ₹5 for the financial year ended March 31, 2026. The payout is subject to shareholders’ approval at the company’s 44th Annual General Meeting and will be paid within 30 days from the date of approval.
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Shares of Mastek Ltd ended at ₹1,685.00, down by ₹43.55, or 2.52%, on the BSE.
(Edited by : Jomy Jos Pullokaran)
