Zensar Technologies , a global technology services company, has reported a strong performance for the first quarter, with artificial intelligence (AI) playing a pivotal role in its growth strategy.

Financial Highlights

The company reported revenues of $162.00 million for Q1, marking a sequential growth of 3.3% in reported currency and 1.9% in constant currency. Gross profit stood at 30.5%, showing a sequential growth of 20 basis points quarter-on-quarter. However, EBITDA was 15.2%, down 40 basis points quarter-on-quarter due to investments in sales and marketing.

Sector-wise Performance

On a constant currency basis, Zensar witnessed growth across multiple sectors:

AI-Driven Strategy

Artificial intelligence has become central to Zensar's strategy, driving 30% of its active pipeline. The company reported that 20% of its order bookings consisted of AI-influenced wins. Notably, over half of Zensar's talent has been upskilled in AI and GenAI technologies.

Manish Tandon, CEO and Managing Director of Zensar Technologies, stated, "This quarter, we proved what's possible when trusted relationships meet strong execution. Artificial intelligence has become central to our strategy, reshaping how we deliver value."

Order Book and Client Metrics

The company added an order book of $172.00 million, representing an 11.7% year-over-year growth. The number of $20 million-plus accounts increased from 4 to 6 compared to the same quarter last year, indicating broader client growth.

Employee Initiatives

Zensar announced salary hikes for all employees effective July 1st, unlike some industry peers. The company's attrition rate improved to 9.8% from 9.9% in the previous quarter.

Outlook

While the company anticipates some macro-driven variability in client budgets, management expressed confidence in their diversified portfolio and AI-focused offerings. Zensar remains committed to fostering sustainable relationships with clients by leveraging robust farming strategies, enhanced with AI-driven value propositions and cost takeout deals.

Pulkit Bhandari, Chief Financial Officer, commented on the financial outlook, stating, "We remain committed to making sure that we are in the mid-teens margin range, despite upcoming investments and potential ESOP impacts."

As Zensar Technologies continues to navigate the evolving tech landscape, its focus on AI-driven solutions and strategic client relationships positions the company for potential growth in the coming quarters.

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.