Zensar Technologies (504067) Q2 25/26 earnings summary

Executive summary

• Achieved Q2 FY26 revenue of $162.8M, up 4.2% YoY and 0.5% sequentially, with margin expansion and disciplined execution.

• Launched the Zensai AI platform, updated the website, and highlighted AI-driven project wins across multiple sectors.

• Maintained a client-centric strategy, adapting to global shifts and leading with AI.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board.

• Independent auditors reviewed results with no material misstatements identified.

Financial highlights

• Q2 FY26 revenue was $162.8M (₹14,213M), up 4.2% YoY; consolidated net profit was ₹1,822M, up from ₹1,557M YoY.

• Gross margin improved to 31%, up 50 bps QoQ; EBITDA margin rose to 15.4%, up 20 bps sequentially.

• Diluted EPS grew to INR 7.9 per share, a 16.2% YoY increase; basic EPS (consolidated) for Q2 FY26 was ₹8.02.

• Cash and investments totaled $293M post-dividend payout; cash and cash equivalents (consolidated) as of September 30, 2025, stood at ₹3,741M.

• Net cash generated from operating activities (consolidated) for H1 FY26 was ₹3,069M, up from ₹1,723M in H1 FY25.

Outlook and guidance

• Management remains positive on business outlook except for TMT headwinds, with a strong qualified pipeline and focus on execution.

• Q3 expected to be seasonally weak due to industry-wide furloughs, but reduced TMT exposure should mitigate impact.

• Committed to maintaining mid-teen EBITDA margins, with flexibility for investments.

• The Board highlighted continued growth in both revenue and profitability year-over-year.