India · Delayed Price · Currency is INR Zensar Technologies Earnings Call Transcripts
Fiscal Year 2026
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Revenue and profit grew modestly in FY 2026, with strong order book and cash position. AI-native offerings and workforce upskilling drove client wins, but TMT remains under pressure. Margin guidance for FY 2027 is mid-teens, with large deal ramp-up expected by Q3.
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Q3 FY26 saw modest revenue growth and strong margin expansion, driven by offshore volume and disciplined execution. BFSI led growth, while TMT and Healthcare faced headwinds. AI initiatives and a robust cash position support ongoing investments and shareholder returns.
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Q2 FY26 saw steady revenue and margin growth, with strong performance in BFS, healthcare, and AI-driven services, while TMT faced secular headwinds. The company maintained robust cash reserves, improved utilization, and increased AI-influenced order bookings to 28%.
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Revenue grew 3.3% sequentially to $162M, with strong AI-driven deal momentum and improved attrition. EBITDA margin declined to 15.2% due to higher costs, while order bookings rose 11.7% YoY. Management projects continued growth but notes macro headwinds and margin pressures from wage hikes and ESOPs.
Fiscal Year 2025
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Q4 FY25 saw modest sequential revenue growth, strong order book momentum, and stable margins, with AI-led solutions driving client engagement. Management remains cautious due to macro uncertainty but maintains a mid-teens margin outlook and increased dividend payout.
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Q3 FY25 saw 8.6% YoY and 0.5% QoQ revenue growth, record order book, and margin expansion. Manufacturing and Consumer Services led growth, while TMT and Healthcare faced headwinds. Outlook remains positive with a healthy pipeline and focus on double-digit growth for FY26.
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Order book reached a record $201.8M, with Q2 revenue up 4% YoY and 1.2% sequentially. BFSI and healthcare led growth, while TMT declined. Margins remained stable, and offshore revenue share rose to 50%.