Zensar Technologies (504067) Q4 24/25 earnings summary

Executive summary

• Achieved overall growth in all geographies and sustained profitability in Q4 FY25, with total revenue reaching $156.8M, up 0.9% QoQ and 6.3% YoY in constant currency, despite geopolitical uncertainties and cautious client sentiment.

• Order book reached $213.5 million, up 17.6% YoY, marking the third consecutive quarter above $200 million, with net new wins totaling $213.5M, a $32.0M increase YoY.

• AI-led propositions and solutions are driving client engagement and pipeline growth, with notable digital transformation projects and productivity automation.

• PAT margin improved to 13.0%, up 100 bps QoQ, and cash position stood at $290.5M, increasing $21.4M QoQ.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025, were approved with an unmodified auditor's opinion.

Financial highlights

• Q4 FY25 revenue was $156.8 million, up 0.9% sequentially in constant currency; full-year FY25 revenue was $624.5 million, up 5.4% in reported currency and 5.1% in constant currency.

• Gross margin for Q4 FY25 stood at 30.3%, up 20 basis points quarter-on-quarter, while EBITDA margin was 15.6%, supported by cost management and improved utilization.

• PAT margin for the quarter was 13%.

• Standalone revenue from operations for FY25 was ₹22,261 million, up from ₹20,192 million in FY24; consolidated revenue from operations for FY25 reached ₹52,806 million, up from ₹49,019 million in FY24.

• Consolidated net profit after tax for FY25 was ₹6,498 million, slightly down from ₹6,650 million in FY24.

Outlook and guidance

• Management maintains a mid-teens margin outlook for FY26, including anticipated visa cost increases.

• Growth aspiration remains unchanged, but management acknowledges increased macro uncertainty and potential delays in demand realization.

• Order book expected to support growth through Q1 and possibly Q2 FY26, but visibility beyond that is limited due to ongoing uncertainty.

• Continued focus on digital and cloud infrastructure segments, with segment revenue growth noted.