Zensar Technologies Reports Flat Net Profit, Modest Revenue Growth and Margin Improvement in Q2 FY26

Zensar Technologies Limited has announced its financial performance for the second quarter of fiscal year 2026, ending September 2025. The company posted a net profit of ₹182.2 crore, which remained largely unchanged from the ₹182 crore recorded in the preceding quarter. Revenue experienced a sequential increase of 2.6%, reaching ₹1,421 crore from ₹1,385 crore. Earnings Before Interest and Taxes (EBIT) also saw a positive uptick, growing by 3.9% to ₹194.8 crore. The operating margin improved slightly to 15.5% from 15.2% quarter-on-quarter.

In US dollar terms, revenue was $162.8 million, showing a 4.2% year-on-year growth in reported currency and a 3.4% rise in constant currency, with a 0.5% sequential growth. Gross margins improved by 50 basis points sequentially to 31.0%.

Performance varied across business segments. Banking and Financial Services grew 5.6% sequentially and 11.0% year-on-year. Healthcare and Life Sciences saw sequential growth of 3.9% and year-on-year growth of 11.3%. Manufacturing and Consumer Services remained stable. However, the Telecommunication, Media and Technology segment experienced a decline.

Regionally, the US market saw a slight sequential dip but a year-on-year increase. Europe and Africa both demonstrated sequential and year-on-year growth.

Manish Tandon, CEO and Managing Director, highlighted steady revenue growth, disciplined execution, and the strategic priority of scaled AI talent. He also announced the launch of ZenseAI, a new platform aimed at enhancing the company's service offerings through artificial intelligence.

Impact: This news provides investors with an update on Zensar Technologies' financial health and strategic direction, particularly its focus on AI. The steady revenue and margin improvements, despite a flat profit, indicate resilience. The launch of ZenseAI could be a key growth driver. The stock's performance post-announcement will be closely watched. Rating: 6/10

Difficult Terms: EBIT (Earnings Before Interest and Taxes): A measure of a company's profit before deducting interest expenses and income taxes. It indicates the profitability of a company's core operations. Sequential growth: The growth of a metric from one reporting period to the next (e.g., from Q1 to Q2 of the same year). Constant currency: A method of reporting financial results that excludes the effects of foreign exchange rate fluctuations, providing a clearer view of underlying business performance. Basis points: A unit of measure used in finance equal to one-hundredth of a percentage point. 50 basis points equals 0.50%: