Zensar Registers 2.2% YoY Revenue Growth in Q3 FY26

Zensar Technologies reported a 2.2% year-over-year revenue increase in reported currency for Q3 FY26, reaching $160.5M. The company’s EBITDA margin reached 17.4%, with net cash and equivalents at $322.4M. Almost 20% of the current order book is AI-influenced, highlighting the company’s shift towards becoming an AI-native tech services provider.

Financial Performance

For Q3 FY26, Zensar Technologies posted the following results:

Revenue: $160.5M, a year-over-year increase of 2.2% in reported currency and 1.3% in constant currency.

Gross Margin: 33.7% of revenue, a sequential increase of 270 bps.

EBITDA: 17.4% of revenue, a sequential increase of 200 bps.

Order book: $180.2M, a sequential increase of 13.6%.

Net cash and cash equivalents: $322.4M at the end of Q3 FY26.

The company reported a DSO (Days Sales Outstanding) of 71 days, a sequential improvement of 4 days.

Vertical Performance

Manufacturing and Consumer Services: Sequential revenue growth of 3.2%, year-over-year decline of 2.7%.

Banking and Financial Services: Sequential revenue decline of 0.4%, year-over-year growth of 12.2%.

Healthcare and Life Sciences: Sequential revenue decline of 2.5%, year-over-year growth of 5.2%.

Telecommunication, Media and Technology: Sequential revenue decline of 8.8%, year-over-year decline of 11.6%.

Geographical Performance

US region: Sequential decline of 3.0%, year-over-year decline of 0.4%.

Europe region: Sequential growth of 1.2%, year-over-year growth of 6.1%.

Africa region: Sequential growth of 2.8%, year-over-year growth of 10.7%.

Strategic Wins & Focus on AI

Zensar is focusing on becoming an AI-native technology services company. Nearly 20% of this year’s order book is AI-Influenced. Significant Q3 wins include:

Agentic AI solution to automate business processes for a US-based cybersecurity organization.

AI-powered intelligent search and discovery for a leading European motoring association.

Enterprise AI Readiness Assessment for a global client in the aviation industry.

AI-Native Investigation Product Development for police investigations for a US-based organization.

Source: BSE