Zensar Technologies reported consolidated revenue of ₹15,083 million ($159.5 million) for the quarter ended June 30, 2026, marking an 8.9% year-on-year increase and a 4.0% quarter-on-quarter rise in INR terms. The Pune-based IT services firm posted a net profit of ₹1,838 million ($19.4 million), up 1% from ₹1,820 million in Q1FY26. However, profitability metrics faced pressure, with EBITDA margins contracting by 150 basis points sequentially to 14.6%, primarily due to transition costs associated with early-stage execution of large new deals.

The results were approved by the Board of Directors on July 29, 2026, and reviewed by statutory auditors S R B C & Co LLP pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In constant currency terms, revenue grew by 1.1% sequentially but declined by 2.0% year-on-year, reflecting the impact of foreign exchange fluctuations. The company maintained a strong balance sheet with net cash and cash equivalents of $317.5 million, a 0.6% increase year-on-year.

Segment Performance

Banking and Financial Services (BFSI) emerged as the primary growth engine, contributing 48.8% of total revenue. The vertical registered an 8.3% quarter-on-quarter and 14.7% year-on-year growth in constant currency terms. Conversely, other verticals faced headwinds. Telecommunication, Media and Technology (TMT) revenue declined by 28.0% year-on-year in constant currency, while Healthcare and Life Sciences (HLS) fell by 8.7%. Manufacturing and Consumer Services (MCS) also saw a 3.4% year-on-year decline.

Geographically, the US region accounted for 66.2% of revenue, growing 2.5% sequentially but declining 3.7% year-on-year in constant currency. Europe contributed 21.5% of revenue, with a 3.0% year-on-year growth in constant currency despite a 1.4% sequential decline. Africa’s contribution stood at 12.3%, showing minimal change with a 0.8% year-on-year decline.

What the Numbers Show

A notable divergence exists between top-line growth and margin expansion. While revenue grew sequentially, EBITDA dropped by 8.6% to $23.3 million. Management attributed this to a 200-basis point impact from large deal transitions and higher direct costs for travel, visas, and training. This suggests that recent wins, particularly in AI-driven projects, are currently cost-intensive during the mobilization phase.

Client concentration remains stable, with the top 20 clients contributing 56.6% of revenue, slightly up from 56.0% in Q4FY26. The number of clients generating over $10 million in revenue increased to 19 from 15 in the previous quarter, indicating deeper engagement with key accounts. Operating expenses as a percentage of revenue improved to 15.1% from 16.5% in Q4FY26, demonstrating some operational leverage despite the margin pressure from direct costs.

Strategic Wins and Outlook

Zensar secured several significant AI-focused wins in Q1FY27, including grants lifecycle modernization for a leading US property insurer and payments optimization for a global energy leader. CEO Manish Tandon highlighted broad-based volume gains despite a challenging macroeconomic environment characterized by prolonged decision cycles. CFO Pulkit Bhandari noted that these large deals strengthen positioning for high-value strategic programs.

The company also reported improved human capital metrics, with total headcount rising to 11,342 from 10,779 in FY26. Voluntary attrition decreased to 9.6% from 9.8% in the previous period, and utilization rates improved to 85.1%. Zensar was recognized as a Leader in Everest Group’s Guidewire Services PEAK Matrix Assessment 2026 and ranked #1 in IT Services in Great Place to Work’s ‘Best Companies to Work For 2026’.

Zensar Technologies has scheduled its Q1FY27 earnings conference call for Thursday, July 30, 2026, at 8:30 AM IST. The event is designed to discuss the company's financial performance for the first quarter of fiscal year 2026-27 (Q1FY27) with investors and analysts. This announcement follows the company's earlier communication dated July 21, 2026, regarding the schedule of its Board meeting.

The Board of Directors is scheduled to meet on Wednesday, July 29, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. The earnings call will provide management's perspective on the operational and financial outcomes approved during this session. Zensar Technologies notified the BSE Limited and National Stock Exchange of India Limited of these arrangements via a letter dated July 27, 2026.

Conference Call Details

The earnings call will be led by senior management, including Manish Tandon, Managing Director and CEO, and Pulkit Bhandari, CFO. Other senior management personnel are also expected to participate in the discussion. The call is being coordinated by Asian Markets — Securities — Institutional Equities.

Dial-In Information

Investors and analysts can access the call through universal dial-in numbers or region-specific lines provided by the coordinator. Participants are required to register via the Diamond Pass registration link prior to the event. The specific dial-in numbers are as follows:

• Universal: +91 22 6280 1317 / +91 22 7115 8218
• USA: 18667462133
• UK: 08081011573
• Hong Kong: 800964448
• Singapore: 8001012045

Regulatory Compliance

The announcement was issued by Anand Daga, Company Secretary of Zensar Technologies Limited, and digitally signed on July 27, 2026. The notice serves as an informational update to stakeholders regarding the timeline for accessing management commentary on the Q1FY27 results. No specific financial figures were disclosed in this scheduling notice; those details will be presented during the board-approved results release and subsequent conference call.