Zensar Technologies (504067) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached $159.5 million (₹15,083 million), up 1.1% sequentially in constant currency and 8.9% year-over-year in INR terms, with strong BFSI and AI-native offerings driving growth.

• PAT margin stood at 12.2%, declining 220 bps sequentially, with net profit after tax at ₹1,838 million.

• Workforce expanded by 5.2% sequentially, voluntary attrition at 9.6% for the sixth consecutive quarter.

• Order book at $149.2 million (INR 149.2 million), up 62.9% QoQ.

• Ranked #1 in IT Services sector and #6 overall in India's Best Companies to Work For 2026.

Financial highlights

• EBITDA margin contracted by 150 bps sequentially to 14.6% due to pre-staffing, transition costs, and increased travel, visa, and training expenses.

• Diluted EPS at INR 8 per share (basic EPS ₹8.11), up 0.9% year-over-year.

• Cash and investments at $317.5 million (₹317.5 million), with a $2.0 million decrease QoQ.

• Top 5 clients contributed 24.7% of revenue, top 10 clients 38.9%, and top 20 clients 56.6%.

• Total assets as of June 30, 2026, were ₹61,839 million.

Outlook and guidance

• Full revenue impact from the $210 million mega BFSI deal expected in Q3 and Q4, with continued ramp-up in Q2.

• Margins expected to remain at Q1 levels for Q2 and Q3 due to ongoing investments in SG&A, AI capabilities, and deal ramp-up.

• No further impact from Labour Code changes is expected; focus remains on AI-native transformation and disciplined execution.

• Management highlighted strong order book momentum and continued focus on AI-driven solutions.