Zensar Technologies (504067) Q4 25/26 earnings summary

Executive summary

• Delivered modest but resilient revenue growth for FY 2026, 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 customer satisfaction and industry-leading low attrition at 9.8%.

• 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%.

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

Financial highlights

• Q4 FY 2026 revenue: $158.4M, up 1% YoY, down 1.3% sequentially in USD; 6.7% YoY growth in INR.

• FY 2026 revenue: $643.7M, up 3.1% YoY in USD; 7.7% YoY in INR.

• Profit after tax for FY 2026: $87.2M, up 13.6% YoY.

• Net cash and equivalents: $319.5M, up 10% YoY.

• Order book at all-time high: $401.8M, up 122.9% sequentially; full-year order book reached $912.7M, up 17.8% YoY.

• PAT margin for Q4: 14.4%, up 50 bps; diluted EPS up 5.6% QoQ.

• Final dividend of $12.6/share for FY 2026, total dividend 750% of face value.

• Consolidated revenue from operations for FY26 was ₹56,874 million, up from ₹52,806 million YoY; consolidated net profit after tax for FY26 was ₹7,746 million.

Outlook and guidance

• No de-growth expected in Q1 FY 2027; growth anticipated in EU, S.A., BFSI, and MCS, while TMT remains under pressure.

• Margin guidance maintained at mid-teens (14%-16%) for FY 2027, with some pressure in Q1 and Q2 due to large deal transition costs.

• Full ramp-up of mega deal revenue expected by Q3 FY 2027.

• 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.