Zensar Technologies (504067) Q4 25/26 earnings summary

Executive summary

• Delivered resilient revenue and profitability growth for FY 2026, driven by AI-native offerings, offshore-led volume, and a mega deal win, with 85% of workforce AI-certified and multiple high-value AI-led wins.

• Achieved highest-ever annualized order book and robust cash position, with Q4 FY26 revenue at $158.4M, up 1% YoY, and PAT margin at 14.4%, a 50 bps sequential increase.

• FY26 total revenue was $643.7M, growing 3.1% YoY, and PAT margin improved by 120 bps to 13.5%.

• Customer satisfaction and employee retention reached industry-leading levels, with attrition at 9.8% for Q4 and FY26.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified auditor opinions.

Financial highlights

• FY26 consolidated revenue: $643.7M (₹56,874 million), up 3.1% YoY in USD and 7.7% YoY in INR; Q4 revenue: $158.4M, up 1% YoY.

• FY26 profit after tax: $87.2M (₹7,746 million), up 13.6% YoY; PAT margin for Q4: 14.4%, up 50 bps sequentially.

• Net cash and equivalents: $319.5M (₹4,163 million), up 10% YoY.

• Order book at all-time high: $401.8M for Q4, up 122.9% sequentially; full-year order book $912.7M, up 17.8% YoY.

• Final dividend of $12.6/share (INR 12.60 per share), total dividend 750% of face value, subject to AGM approval.

Outlook and guidance

• No de-growth expected in Q1 FY27; growth anticipated in EU, South Africa, BFSI, and MCS segments.

• Margin guidance remains mid-teens (14%-16%) for FY27, with some pressure in Q1 and Q2 due to large deal transition costs.

• Full ramp-up of mega deal revenue expected by Q3 FY27; management highlights robust order book growth and continued AI-led investments.

• Company continues to monitor regulatory changes, especially regarding new Labour Codes.