Zensar Technologies (504067) investor relations material

Executive summary

• Achieved sequential revenue growth of 3.3% QoQ and 4.9% YoY in USD terms, with broad-based performance across top accounts and key verticals despite macroeconomic headwinds.

• AI-driven deals and investments in emerging technologies are fueling a healthy pipeline and order book, with 42% of the pipeline now AI-infused and major wins across multiple sectors.

• Salary hikes implemented for all employees effective July 1, with attrition dropping to 9.8%, the lowest in two years, supporting operational stability.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, and revised materiality policy in line with SEBI regulations.

Financial highlights

• Reported consolidated revenue for Q1 FY26 was $162.0M (₹13,850 million), up 3.3% QoQ and 4.9% YoY; gross margin at 30.5%, EBITDA margin at 15.2%, and PAT margin at 13.1%.

• Order bookings reached $172.0M, up 11.7% YoY, with cash and investment reserves at $315.7M.

• Top five clients grew 5%, contributing 27.2% of revenue; active clients stable at 166.

• Standalone revenue for Q1 FY26 was ₹6,222 million, with standalone net profit at ₹1,718 million.

• DSOs improved to 72 days; cash position remains strong.

Outlook and guidance

• Management projects continued sequential growth each quarter, focusing on predictability and sustainable mid-teen margins, but does not commit to double-digit annual growth.

• Cautious optimism for FY26, with focus on AI-led deals, reskilling, and client satisfaction to drive future growth.

• Q2 expected to see growth in Manufacturing and Consumer Services; cautious optimism for Africa and Europe as new leadership and deal wins take effect.