Zensar Technologies Limited , a leading Experience Engineering and Engagement solutions company, has announced plans to establish a new entity in Serbia alongside reporting robust financial results for the first quarter.

Expansion into Serbia

The Board of Directors of Zensar Technologies has granted in-principle approval for setting up a new entity in the Republic of Serbia. This strategic move will be executed either directly through a subsidiary or via a joint venture partnership. The new entity, tentatively named Zensar Technologies Serbia, will operate in the software and allied services industry.

Initially, the subsidiary will subscribe to the minimum required capital at face value. As a step-down subsidiary, the new entity will be considered a related party to Zensar Technologies, although promoters and promoter groups have no direct interest in it.

Strong Q1 Financial Performance

Zensar Technologies also reported impressive financial results for Q1:

• Revenue: The company reported revenue of $162.00 million, marking 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

Management Commentary

Manish Tandon, CEO and Managing Director of Zensar, commented on the company's performance: "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 1.90% growth in constant currency. EBITDA margins stood at 15.20% with PAT margin of 13.10%. We booked orders worth $172.00 million, which is an increase of 11.70% year-over-year. 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."

The company's focus on AI-led deals and next-gen technologies, coupled with its strategic expansion plans, positions Zensar Technologies for continued growth in the evolving global IT services landscape.

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

Geographical Performance

Note: All growth figures are in constant currency

Industry Vertical Performance

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.