Zensar Technologies , a leading digital solutions and technology services company, has reported a modest growth in its financial performance for the first quarter, despite facing challenging global market conditions. The company remains cautiously optimistic about its near-term prospects.

Q1 Financial Highlights

Sector-wise Performance

Zensar continues to see momentum in deal wins within two key segments:

• Banking, Financial Services, and Insurance (BFSI)
• Healthcare

However, the company reported flat performance in:

• Manufacturing
• Consumer Services
• Technology, Media, and Telecom (TMT)

Management Commentary

Manish Tandon, MD and CEO of Zensar Technologies, expressed cautious optimism for continued sequential growth in Q2, despite the challenging market conditions. He noted that global trade tensions and tariff uncertainties are affecting all markets, leading companies to focus primarily on mandatory and non-discretionary spending projects.

"Large-scale projects have taken a backseat while consolidation deals continue," Tandon commented, highlighting the shift in client priorities amidst economic uncertainties.

Market Response

Zensar Technologies' shares closed 0.58% higher at Rs 816.00 on the National Stock Exchange (NSE), reflecting a positive market response to the company's Q1 performance and outlook.

Investor Relations Update

As per the latest LODR (Listing Obligations and Disclosure Requirements) filing, Zensar Technologies held its Q1FY26 Results Earnings Call on July 22, 2025. The company has made the audio recording of this call available on its website under the Investors Corner, Meetings Transcripts and Recordings section, demonstrating its commitment to transparency and investor communication.

Outlook

While Zensar Technologies faces headwinds from global economic uncertainties, the company's ability to maintain growth in key sectors and its focus on mandatory and non-discretionary projects position it to navigate the challenging environment. The management's cautious optimism for Q2 suggests a measured approach to growth in the face of ongoing market challenges.

Zensar Technologies , a leading Experience Engineering and Engagement solutions company, has announced its plans to establish a new entity in Serbia, marking a significant step in its global expansion strategy. This move comes as the company reports robust financial results for the first quarter.

Expansion into Serbia

The Board of Directors of Zensar Technologies has given in-principle approval for setting up a new entity in the Republic of Serbia. This expansion will be executed either directly through a subsidiary of the company or through a joint venture partner. The move is expected to strengthen Zensar's presence in Eastern Europe and tap into Serbia's growing IT talent pool.

Strong Q1 Financial Performance

Alongside its expansion plans, Zensar Technologies has reported impressive financial results for Q1:

• Revenue: The company reported a revenue of $162.00 million, representing a year-over-year growth of 4.90% in reported currency and 3.80% in constant currency.
• Profitability: Gross margins stood at 30.50%, showing a sequential growth of 20 basis points quarter-over-quarter.
• Regional Performance:
  • US region: Reported a sequential quarter-over-quarter growth of 4.30% and a year-over-year growth of 4.30% in constant currency.
  • Europe region: Experienced a sequential quarter-over-quarter decline of 5.80% but maintained a year-over-year growth of 3.80% in constant currency.
  • Africa region: Showed a sequential quarter-over-quarter growth of 1.50% and a year-over-year growth of 0.60% in constant currency.

Sector-wise Performance

Zensar's performance across various sectors showed mixed results:

Management Commentary

Manish Tandon, CEO and Managing Director of Zensar, expressed satisfaction with the company's performance, stating, "We delivered a strong quarter with steady revenue growth, driven by growing traction in AI-led deals and impactful solution delivery. With our lowest attrition in two years, I'm proud of our people and the culture we've built."

Pulkit Bhandari, CFO of Zensar, highlighted the company's financial stability, noting, "We have healthy cash & investment reserves of $315.70 million, which underscores our financial stability and provides us with the flexibility to invest in growth opportunities."

Looking Ahead

With its expansion into Serbia and strong financial performance, Zensar Technologies appears well-positioned for continued growth. The company's focus on AI-led deals and its robust cash reserves indicate a strategic approach to navigating the evolving IT services landscape.

As Zensar continues to expand its global footprint and diversify its service offerings, investors and industry observers will be keenly watching how these moves translate into long-term growth and market position.