Zensar Technologies Limited Earnings Summary — Q4 FY2026
Zensar Technologies Achieves Record Quarterly Profit Amid Steady Revenue Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹1,508 Cr is 8.9% higher year-on-year.
- Revenue has compounded at 9.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹184 Cr is 1.0% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 2.6% annualised across the period.
- Operating margin stands at 14.7% in Q1 FY2027.
- Operating margin compressed by 56 bps year-on-year.
- Over the last two years operating margin has contracted by 58 bps.
- PBT margin is 16.3%.
- Expenses grew 9.6% against revenue growth of 8.9%.
- Operating profit of ₹221 Cr is 4.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 67/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,508 | 1,450 | 1,431 | 1,421 | 1,385 | 1,359 | 1,326 | 1,308 | 1,288 | 1,230 |
| Expenses | Stable | 1,287 | 1,215 | 1,181 | 1,201 | 1,174 | 1,146 | 1,119 | 1,107 | 1,092 | 1,027 |
| Operating Profit | Stable | 221 | 236 | 250 | 220 | 211 | 213 | 207 | 201 | 196 | 203 |
| Operating Margin | Stable | 14.7% | 16.2% | 17.5% | 15.5% | 15.2% | 15.6% | 15.6% | 15.4% | 15.2% | 16.5% |
| Other Income | Improving | 57 | 66 | 38 | 49 | 57 | 46 | 31 | 41 | 42 | 52 |
| Interest | Improving | 4 | 3 | 2 | 4 | 4 | 5 | 4 | 5 | 4 | 3 |
| Depreciation | Improving | 29 | 23 | 20 | 25 | 23 | 24 | 24 | 30 | 25 | 24 |
| Profit Before Tax | Stable | 246 | 276 | 265 | 240 | 241 | 230 | 210 | 208 | 210 | 229 |
| Tax | Stable | 62 | 65 | 65 | 58 | 59 | 53 | 51 | 52 | 52 | 55 |
| Net Profit | Stable | 184 | 211 | 200 | 182 | 182 | 176 | 160 | 156 | 158 | 173 |
| Net Margin | Stable | 12.2% | 14.5% | 14.0% | 12.8% | 13.1% | 13.0% | 12.1% | 11.9% | 12.3% | 14.1% |
Key Takeaways
- Delivered a record quarterly net profit of ₹211 Cr in Q4 FY26, representing nearly 20% YoY growth.
- Quarterly revenue saw a steady climb to ₹1,450 Cr, continuing a consistent 12-quarter growth trend.
- Operating margins remained resilient at 16%, supported by efficient cost management despite higher expenses.
- The balance sheet remains exceptionally strong with total borrowings declining to just ₹79 Cr.
- Other income spiked to ₹66 Cr in the latest quarter, significantly aiding the bottom-line performance.
- Earnings Per Share (EPS) for the quarter reached a new high of ₹9.26 per share.
- Cash and investments reached a massive ₹1,921 Cr, providing significant capital allocation flexibility.
- Management successfully maintained tax efficiency with the effective tax rate holding steady at 24%.
Management Guidance
Management remains focused on operational excellence and client mining under the RPG Group's strategic pillars of Experience Services and Advanced Engineering.
Sentiment Shift
Improving
Consistent quarterly profit expansion and a rapidly strengthening net cash position overshadow the modest single-digit revenue growth.
Outlook
The company is positioned as a high-quality compounder with a specialized focus on BFSI and Manufacturing verticals. While organic revenue growth lags Tier-1 peers, the focus on higher-value offshore delivery and structural margin improvements supports long-term profitability.
From the Annual Report (Key Quotes)
“The company has transitioned from a legacy service provider to a specialized player in Hi-tech, Manufacturing, and BFSI verticals.”
“There is a clear focus on employee utilization and attrition management to drive margins.”
“Balance sheet is exceptionally strong, characterized by zero net debt and a massive buildup of liquid investments.”
Official Quarterly Documents
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This summary is AI-generated from Zensar Technologies Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.