Zensar Technologies Reports 4.9% YoY Revenue Growth in Q1 FY26
By ScanX News Team
Zensar Technologies announced its Q1 FY26 results, reporting revenue of ₹13,850.00 million, a 7.5% YoY growth. Net profit increased by 15.3% YoY to ₹1,820.00 million. The company saw growth across key segments, with Digital and Application Services contributing 78.9% to total revenue. Geographically, US showed 4.3% growth both QoQ and YoY. The company maintained a healthy utilization rate of 84.3% and reduced voluntary attrition to 9.8%. Management expressed cautious optimism for future growth despite macro uncertainties.
*this image is generated using AI for illustrative purposes only.
Zensar Technologies , a leading Experience Engineering and Engagement solutions company, has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported a solid performance with notable growth across key financial metrics.
Financial Highlights
- Revenue from operations stood at ₹13,850.00 million, marking a 7.5% year-over-year (YoY) growth in Indian Rupees and a 4.9% YoY growth in reported currency.
- The company achieved a sequential quarter-over-quarter (QoQ) growth of 1.9% in constant currency.
- Gross margins improved to 30.5%, showing a sequential growth of 20 basis points QoQ.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins were at 15.2%.
- Net profit after tax (PAT) reached ₹1,820.00 million, representing a 15.3% YoY growth and a strong PAT margin of 13.1%.
Segment Performance
| Segment | Revenue (₹ million) | Contribution to Total Revenue |
|---|---|---|
| Digital and Application Services | 10,929.00 | 78.9% |
| Cloud Infrastructure and Security | 2,921.00 | 21.1% |
Geographical Performance
| Region | QoQ Growth | YoY Growth |
|---|---|---|
| US | 4.3% | 4.3% |
| Europe | -5.8% | 3.8% |
| Africa | 1.5% | 0.6% |
Note: All growth figures are in constant currency
Industry Vertical Performance
| Vertical | QoQ Growth | YoY Growth |
|---|---|---|
| Banking and Financial Services | 2.9% | 8.2% |
| Healthcare and Life Sciences | 5.2% | 16.5% |
| Telecommunication, Media and Technology | 5.5% | -5.6% |
| Manufacturing and Consumer Services | -4.1% | 1.1% |
Note: All growth figures are in constant currency
Key Operational Metrics
- Utilization rate (excluding trainees): 84.3%
- Total headcount: 10,620
- Women employees representation: 29.8%
- Voluntary attrition rate: 9.8% (lowest in two years)
Management Commentary
Manish Tandon, CEO and Managing Director of Zensar, commented on the results, saying, "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. Our ongoing focus on reskilling and upskilling in next-gen tech has resulted in healthy utilization levels."
Pulkit Bhandari, CFO of Zensar, added, "We have achieved robust revenue of $162.00 million for this quarter translating into 1.9% growth in constant currency. We booked orders worth $172.00 million which is an increase of 11.7% YoY. 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."
Future Outlook
Despite political unrest and macro uncertainties, Zensar's management expressed cautious optimism about the company's performance for the rest of the year. The company continues to focus on its core operational foundations, prioritizing people development and achieving outstanding client satisfaction.
Zensar's strong performance in Q1 FY26, particularly in its key markets and verticals, positions the company well for continued growth in the evolving digital landscape.
Historical Stock Returns for Zensar Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.04% | +0.10% | -3.04% | +8.17% | +8.38% | +477.23% |
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