Mastek: AI Adoption Slow, But FY27 Poised for Stronger IT Growth

• Mastek's Chairperson, Ashank Desai, notes that AI adoption by clients is currently slow due to ongoing testing of use cases, impacting decision-making and deal ramp-ups.
• Despite the current slowdown, Desai anticipates FY27 will see stronger IT growth compared to FY26, driven by AI-led demand, data-related projects, and system upgrades.
• Investments made by IT firms in talent, tools, and architecture are beginning to yield positive results, setting the stage for future growth.
• The expected surge in demand from AI and data work is projected to help offset the pricing pressures stemming from productivity gains.
• Mastek's stock is down approximately 1% today and has experienced a nearly 28% decline year-to-date.