Zensar Technologies is facing a potential revenue impact as one of its top five clients, Cisco Systems, is set to reduce business engagements with the Indian IT services company. The development comes as part of Cisco's broader cost optimization strategy.

Client Relationship Impact

The US technology major is implementing significant changes to its vendor management approach, which directly affects its relationship with Zensar Technologies. As one of Zensar's top five clients, Cisco Systems represents a substantial portion of the company's business portfolio.

Cisco's Strategic Restructuring

Cisco Systems is undertaking a comprehensive review of its IT vendor ecosystem as part of its cost management initiatives. The company's decision to pare down the number of IT vendors it works with reflects a strategic shift toward a more streamlined supplier base.

The key factors driving this change include:

• Reduction in the overall number of IT vendors
• Tightened discretionary spending policies
• Focus on cost optimization measures
• Strategic vendor consolidation efforts

Market Implications

This development highlights the challenges faced by IT services companies in maintaining stable client relationships amid changing market dynamics. The reduction in business from a top-tier client like Cisco Systems could have implications for Zensar's revenue projections and client diversification strategy.

The move by Cisco Systems reflects broader industry trends where large technology companies are becoming more selective with their vendor partnerships, prioritizing efficiency and cost-effectiveness in their operational strategies.

Zensar Technologies Limited announced its unaudited financial results for the quarter ended December 31, 2025, showcasing strong operational performance and rewarding shareholders with an interim dividend declaration. The IT services company demonstrated consistent growth across both standalone and consolidated operations during the third quarter of fiscal year 2026.

Financial Performance Highlights

The company's consolidated financial results revealed impressive growth momentum across key performance indicators. Revenue from operations and profitability metrics showed substantial improvement compared to the corresponding quarter of the previous year.

Nine Months Performance

The nine months ended December 31, 2025 demonstrated sustained growth trajectory across both consolidated and standalone operations. Consolidated revenue from operations reached ₹42,370 million compared to ₹39,217 million in the corresponding nine-month period of the previous year. Net profit after tax for the nine months stood at ₹5,640 million, marking an increase from ₹4,734 million in the same period last year.

Segment-wise Performance

The company operates through two primary business segments, both contributing to the overall growth story during the quarter.

Interim Dividend Declaration

The Board of Directors declared an interim dividend of ₹2.40 per equity share of face value ₹2.00 each for the financial year 2025-26. Key dividend details include:

Exceptional Items and Regulatory Impact

The company reported exceptional items of ₹254 million in consolidated results and ₹239 million in standalone results related to the statutory impact of new Labour Codes. This impact arose from the Government of India's notification of four Labour Codes on November 21, 2025, consolidating 29 existing labour laws. The incremental impact primarily relates to changes in wage definition affecting employee benefits provisions.

Earnings Per Share Performance

Earnings per share metrics reflected the company's strong profitability across both consolidated and standalone operations.

The financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on January 22, 2026. The company continues to monitor regulatory developments and will provide appropriate accounting treatment as clarifications emerge regarding the Labour Codes implementation.