Financial Performance Overview

Zensar Technologies reported consolidated financial results for Q1 FY27 (quarter ended June 30, 2026). The company achieved revenue of $159.5 million with sequential constant currency growth of 1.1%. In INR terms, revenue was ₹15,083 million, showing 4.0% quarter-on-quarter growth and 8.9% year-on-year growth.

Profitability metrics showed contraction:

  • Profit after tax stood at 12.2% of revenue, a decrease of 220 basis points quarter-on-quarter
  • EBITDA margin was 14.6%, representing a sequential drop of 150 basis points
  • EBIT margin was 12.8%, declining from previous quarters

The company maintained a strong liquidity position with net cash and cash equivalents of $317.5 million at quarter-end, reflecting a year-on-year increase of 0.6%.

Segment Performance

Vertical-wise Performance (Constant Currency):

  • Banking and Financial Services: QoQ growth of 8.3%, YoY growth of 14.7% (contributed 48.8% of total revenue)
  • Healthcare and Life Sciences: QoQ decline of 3.8%, YoY decline of 8.7%
  • Manufacturing and Consumer Services: QoQ decline of 2.3%, YoY decline of 3.4%
  • Telecommunication, Media and Technology: QoQ decline of 9.1%, YoY decline of 28.0%

Geographical Performance (Constant Currency):

  • US region: QoQ growth of 2.5%, YoY decline of 3.7% (66.2% of revenue)
  • Europe region: QoQ decline of 1.4%, YoY growth of 3.0% (21.5% of revenue)
  • Africa region: QoQ decline of 1.4%, YoY decline of 0.8% (12.3% of revenue)

Service Offering Mix

Revenue distribution by service offering:

  • Digital Application Services: 77.4%
  • Application Services: 27.9%
  • Enterprise Application (SaaS): 12.1%
  • Products & Platforms including CMO services: 26.6%
  • Data Engineering and Analytics: 10.8%
  • Cloud Infrastructure and Security: 22.6%

Client Metrics

The company showed improvement in client diversification:

  • 1 Million dollar+ clients: 89 (increased from 83 in Q4FY26)
  • 5 Million dollar+ clients: 32 (unchanged)
  • 10 Million dollar+ clients: 19 (increased from 15)
  • 20 Million dollar+ clients: 6 (unchanged)

Management Commentary

Manish Tandon, CEO and Managing Director: Characterized Q1FY27 as a "strong start to the year" with 1.1% sequential constant-currency revenue growth driven by broad-based volume gains despite challenging macroeconomic environment. Highlighted Banking and Financial Services as the largest growth engine contributing 48.8% of revenue. Emphasized commitment to driving profitable growth, maintaining balance sheet strength, and creating sustained value through disciplined execution and investment in future-ready capabilities.

Pulkit Bhandari, CFO: Attributed profitability pressure to "transition & early-stage execution for the large deal." Noted the industry is facing "prolonged decision cycles, slower project mobilization, and continued restraint in discretionary technology investments." Stated that large deal wins have strengthened positioning and enabled more effective competition in complex enterprise engagements.

Significant Deal Wins

The company secured multiple AI-driven contracts in Q1FY27:

  • Grants lifecycle modernization using cloud-native, AI-assisted platform for a leading US property insurer
  • Payments and settlement operations optimization with AI-assisted support for a global energy leader
  • Enterprise AI agent governance via AI-powered monitoring platform for a leading American department store holding company
  • Enterprise AI adoption through ZenseAI HR roadmap expansion for one of Africa's largest fashion retailers
  • Guidewire cloud modernization using ZenseAI.GW accelerators for a leading U.S. property and casualty insurer
  • AI-powered deduction audit and analytics platform for revenue recovery for a leading book distributor

Awards and Recognitions

Analyst Recognitions:

  • Leader in Everest Group's Guidewire Services PEAK Matrix® Assessment 2026
  • Major Contender in Everest Group's Oracle Cloud Applications Services PEAK Matrix® Assessment 2026
  • Ranked 20th in Everest Group's Top 50™ Store Services Providers 2026
  • Aspirant in Everest Group's Healthcare Payer Digital Services PEAK Matrix® Assessment 2026

Industry Awards:

  • Ranked #6 in India's 'Best Companies to Work For 2026' by Great Place to Work® (#1 in IT Services sector)
  • Proudly South African Member recognition for Zensar South Africa
  • Diamond Award in Energy Management at iNFHRA Corporate Excellence Conference & Awards 2026
  • Industry Mover recognition by CSA (Corporate Sustainability Assessment) by S&P Global

Operational Metrics

The company employs 11,000+ employees across 30+ locations globally including San Jose, Seattle, Princeton, Cape Town, London, Colombia, and Mexico City. Serves 175+ global clients.

ESG Goals

Environment: Commit to reach Net-zero greenhouse gas emissions by FY45, 50% reduction in Energy Performance Index by FY30 from FY19, 70% renewable energy share by FY30, zero waste to landfills status in FY27.

Social: Target 32% women associates by FY27, reach 225,000 lives through community development initiatives by FY30, achieve 80 annual average hours of upskilling per associate by FY30.

Governance: Maintain 95%+ Code of Conduct training compliance, assess all suppliers based on sustainable procurement criteria by FY30, sustain BitSight rating at advanced level (740+).

Stock Information

  • Share Price (June 30, 2026): ₹428 per share
  • Market Capitalization: ₹9,674 crores
  • Face Value: ₹2 per share
  • Listed on BSE (code: 504067) and NSE (code: ZENSARTECH)

Parent Company Update

RPG Enterprises, established in 1979, reported turnover of US $5.2 billion with diverse business interests in Infrastructure, Tyres, Pharma, IT and Specialty businesses.