Zensar Technologies (504067) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached $160.5 million (14,307 million INR), up 2.2% year-over-year, with total income at 14,938 million and net profit after tax at 1,998 million, reflecting resilient performance despite seasonality and regulatory impacts.

• EBITDA margin improved to 17.4%, up 200 basis points sequentially; gross margin rose to 33.7%, up 270 basis points sequentially.

• Order book stood at $180.2 million, up 13.6% quarter-over-quarter, with net cash and equivalents at $322.4 million.

• Nearly 60% of workforce is AI-certified, with 20% of the order book AI-influenced; AI-driven projects delivered efficiency gains across multiple sectors.

• Interim dividend of INR 2.40 per share declared, with ESOP Trust acquisition of 781,257 shares affecting EPS calculation.

Financial highlights

• Q3 FY26 revenue was $160.5 million, up 2.2% year-over-year and 1.3% in constant currency; INR revenue grew 7.9% year-over-year and 0.7% sequentially.

• EBITDA margin at 17.4%, gross margin at 33.7%, and profit before tax margin at approximately 18.5%.

• Net cash and equivalents at $322.4 million, order book at $180.2 million, and trade receivables at 7,898 million INR.

• Diluted EPS grew to 8.8 per share, a 9.4% sequential increase; total comprehensive income for Q3 FY26 was 2,235 million.

• PAT for the quarter at 13.9%, including a 254 million INR impact from new Labour Code changes.

Outlook and guidance

• Management remains committed to mid-teen margin guidance, with continued investment in AI and sales.

• Expectation of sustainable volume growth translating into revenue growth in coming quarters, especially with more working days.

• No specific revenue growth guidance, but focus remains on double-digit profit growth and maximizing shareholder value; monitoring regulatory changes, especially Labour Codes.

• Forward-looking statements are subject to risks including economic downturns, competition, and global uncertainties.