Zensar Technologies (504067) Q4 25/26 earnings summary

Executive summary

• Delivered resilient revenue growth for FY26, driven by offshore-led volume, strong execution, and AI-native offerings scaled to enterprise adoption, with 85% of workforce AI-certified and multiple high-value AI-led wins.

• Achieved highest-ever annual customer satisfaction score, industry-leading low attrition at 9.8%, and closed a strategic mega deal, boosting the order book to an all-time high.

• Q4 FY26 revenue reached $158.4M, up 1.0% YoY, with PAT margin at 14.4%, a 50 bps sequential increase; FY26 total revenue was $643.7M, growing 3.1% YoY, and PAT margin improved by 120 bps to 13.5%.

• Cash balance stood at $319.5M at year-end, up $29.0M YoY; order book for Q4 was $401.8M, up 122.9% sequentially, and full-year order book reached $912.7M, up 17.8% YoY.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved with unmodified auditor opinions.

Financial highlights

• Q4 FY26 revenue: $158.4M, up 1% YoY, down 1.3% sequentially in USD; INR growth 6.7% YoY, 1.4% sequentially.

• FY26 revenue: $643.7M, up 3.1% YoY in USD, 7.7% in INR; consolidated revenue from operations for FY26 was ₹56,874 million, up from ₹52,806 million YoY.

• Profit after tax for FY26: $87.2M, up 13.6% YoY; consolidated net profit after tax for FY26 was ₹7,746 million, compared to ₹6,498 million in FY25.

• Net cash and equivalents: $319.5M, up 10% YoY; cash and cash equivalents (consolidated) at year-end were ₹4,163 million, up from ₹2,708 million last year.

• Final dividend of $12.6/share for FY26, total dividend 750% of face value; final dividend of INR 12.60 per equity share (630% of face value) recommended.

Outlook and guidance

• No de-growth expected in Q1 FY27; growth anticipated in EU, S.A., BFSI, and MCS, while TMT remains under pressure.

• Full ramp-up of mega deal expected by Q3 FY27, with margin pressure in Q1 and Q2 due to transition costs; mid-teens margin guidance (14%-16%) maintained for FY27.

• Management highlights robust order book growth and continued investments in AI-led transformation projects.

• The company continues to monitor regulatory changes, especially regarding the new Labour Codes, and will adjust accounting as clarifications are issued.