Zensar Technologies (504067) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was $166.2 million, up 4.1% QoQ in constant currency; EBITDA margin expanded 120 bps to 15.8%.

• AI-influenced deals represented 36% of the $151.5 million order book, which increased 1.5% QoQ.

Financial highlights

• Revenue was INR 15,852 million; QoQ growth was 4.2% in USD, 5.1% in INR and 4.1% in constant currency. YoY growth was 2.1% in USD, 11.5% in INR and 2.0% in constant currency.

• EBITDA was $26.2 million, up 12.4% QoQ and 4.4% YoY in USD; INR EBITDA was 2,497 million, up 13.1% QoQ and 13.5% YoY.

• PAT was $20.0 million, up 2.8% QoQ and down 4.0% YoY in USD; INR PAT was 1,902 million, up 3.4% QoQ and 4.3% YoY.

• H1 FY27 consolidated revenue was 30,935 million versus 28,063 million in H1 FY26; net profit was 3,740 million versus 3,642 million.

Outlook and guidance

• Mid-teens margin guidance was maintained; annual wage hikes split between Q3 and Q4 are expected to have a 1.5%-2% margin impact before offsets, while furlough effects remain.

• Q3 outlook was described as better than in prior years; no quarterly revenue guidance was given.

• Fixed-price and outcome-based contract components, particularly outcome-based work, are expected to increase over the next three to four quarters.

• Management cited continued client investment in AI and digital modernization, with growth favoring providers combining AI capabilities, domain expertise and secure execution at scale.