Zensar Technologies (504067) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue reached $156.8 million, up 0.9% quarter-on-quarter and 6.3% year-on-year in constant currency; full-year FY25 revenue was $624.5 million.

• Order book for Q4 stood at $213.5 million, a 17.6% year-on-year increase, marking the third consecutive quarter above $200 million.

• PAT margin for Q4 FY25 was 13.0%, up 100 basis points quarter-on-quarter.

• Cash position at Q4 FY25 was $290.5 million, increasing $21.4 million quarter-on-quarter.

• Board recommended a final dividend of INR 11 per share for FY25, with total dividend at INR 13 per share.

Financial highlights

• Gross margin for Q4 FY25 was 30.3%, up 20 basis points sequentially.

• EBITDA margin for Q4 FY25 was 15.6%, supported by cost management and improved utilization.

• Voluntary attrition dropped to 9.9%, the lowest in recent years.

• Top 5, 10, and 20 clients contributed 27.6%, 40.8%, and 55.8% of total revenue, respectively.

• Standalone revenue from operations for FY25 was ₹22,261 million, up from ₹20,192 million in FY24.

Outlook and guidance

• Management maintains a mid-teens margin outlook for FY26, including anticipated visa costs.

• Growth aspiration remains unchanged, though management acknowledges increased macro uncertainty and potential delays in demand realization.

• Continued focus on digital and cloud infrastructure segments, with segment revenue growth noted.

• Order book expected to support growth through Q1 and possibly Q2 FY26, but uncertainty persists.