Zensar Technologies , a global technology services and solutions provider, has reported a 4.2% year-over-year revenue growth in Q2, despite facing headwinds in the Technology, Media, and Telecommunications (TMT) sector. The company's strategic focus on AI-driven solutions and operational efficiency has helped maintain strong margins and position it for future growth.

Financial Performance

Zensar reported revenues of $162.80 million for Q2, marking a 4.2% year-over-year growth in reported currency and 3.4% in constant currency. The company achieved a sequential quarter-on-quarter growth of 0.5% in reported currency.

Despite absorbing the impact of annual salary hikes and one-time bonuses, Zensar maintained strong margins:

• Gross profit improved to 31.0%, up 50 basis points quarter-on-quarter
• EBITDA reached 15.4%, up 20 basis points quarter-on-quarter

AI-Driven Growth and Innovation

Zensar launched ZenseAI, its next-generation AI platform, demonstrating the company's commitment to AI-led transformation. The platform is designed to elevate the delivery of Zensar's core value proposition of Experience, Engineering, and Engagement.

Notably, 28% of order bookings in Q2 were AI-influenced, up from 21% in the previous quarter. This increase reflects the growing importance of AI solutions in Zensar's business strategy and client engagements.

Operational Highlights

• Utilization rate reached 84.8%, up 200 basis points year-over-year
• Voluntary attrition remained low at 9.8%
• Cash including investments stood at $293.00 million
• Diluted EPS grew 16.2% to INR 7.90 per share

Sector Performance and Challenges

While most sectors showed growth, the TMT sector experienced a significant decline of 9.9% quarter-on-quarter. Manish Tandon, CEO and Managing Director of Zensar Technologies, attributed this to a shift in client spending from operational expenses to capital expenditure for AI and GPU investments.

Future Outlook

Despite challenges in the TMT sector, Zensar remains optimistic about its overall business prospects. The company's focus on AI-driven solutions, operational efficiency, and diversification across sectors positions it well for future growth.

Manish Tandon commented, "As we look ahead, we see the uncertainty in today's global market landscape as an opportunity, particularly in AI. We remain focused on delivering differentiated value through innovation, operational discipline, and deep commitment to client success."

As Zensar navigates the dynamic tech landscape, its strategic investments in AI capabilities and focus on high-growth sectors may help offset challenges in the TMT vertical, potentially driving sustainable growth in the coming quarters.

Zensar Technologies , a leading Experience, Engineering and Engagement solutions company, has announced its financial results for the quarter ended September 30, 2025, reporting consolidated revenue of ₹2,350.00 crores.

Financial Highlights

• Consolidated revenue from operations reached ₹2,350.00 crores for the quarter, up from ₹2,265.00 crores in the previous quarter.
• Net profit after tax for the quarter stood at ₹244.00 crores, compared to ₹190.00 crores in the prior quarter.
• For the half year, revenue from operations totaled ₹4,615.00 crores with net profit after tax of ₹434.00 crores.
• Cash and cash equivalents stood at ₹3,741.00 crores.

Segment Performance

The company operates through two main segments:

1. Digital and Application Services
2. Cloud Infrastructure and Security

Key Points

• The financial results were approved by Zensar Technologies' Board of Directors.
• The results are unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.
• Statutory auditors SRBC & CO LLP reviewed the results and provided clean review reports for both standalone and consolidated financials.

Outlook

Zensar Technologies' performance this quarter shows growth in both revenue and profitability. The company's strong cash position and focus on key segments like Digital and Application Services, and Cloud Infrastructure and Security, position it well in the IT services market.

The company's continued investment in AI capabilities and digital solutions suggests a strategy aligned with current market demands for innovative technology services.