Zensar Technologies reported steady revenue growth of 4.2% year-over-year and 0.5% sequentially, reaching $162.8 million. EBITDA margin expanded by 20 bps sequentially, driven by favorable exchange gains and operational efficiencies. The company launched ZenseAI and reported a book-to-bill ratio of 1.02. The transcript reveals discussions on TMT sector challenges, AI integration, and future growth strategies.
Financial Performance
Zensar Technologies reported a revenue of $162.8 million for Q2FY26, representing a year-over-year growth of 4.2% in reported currency and 3.4% in constant currency. Sequential growth stood at 0.5%. Gross profit margin reached 31.0%, while EBITDA margin improved to 15.4%. The company’s PAT for the quarter stood at 12.8%.
Key Highlights
The company launched ZenseAI, an agentic AI platform. Zensar was recognized as a challenger in the Avasant Digital Masters Award in 2025. The order book for the quarter reached $158.7 million, with a book-to-bill ratio of 1.02 for the first half of the year.
Sector and Vertical Performance
Banking and Financial Services revenues increased by 5.6%, and Healthcare and Life Sciences grew by 3.9%. Manufacturing and Consumer Services saw a slight increase of 0.1%. Telecommunication, Media, and Technology (TMT) declined by 9.9%. The company is managing the TMT decline by growing other parts of the business and reducing dependence on that sector.
Operational Metrics and AI Initiatives
Utilization stood at 84.8%, a 200 bps increase year-over-year. The company added 831 employees, with a voluntary attrition rate of 9.8%. They are enriching their ZenseAI platform and focusing on AI capability enrichment for employees, with over 5,000 people deepening their skills in AI.
Future Outlook
The company acknowledged that Q3 is typically a weaker quarter due to furlough impacts. They are committed to maintaining margins and are focused on leveraging AI opportunities to drive future growth. 28% of current order bookings are AI-influenced. The company expects benefits from operational efficiencies, improved shore mix, and targeted cost control initiatives.
Source: BSE
