Zensar Technologies Ltd (NSE: ZENSARTECH) is a mid-tier IT services firm focused on digital transformation, AI-led solutions, and sectors like BFSI, hi-tech, and manufacturing. It shows steady revenue growth and improving profitability amid a challenging IT macro environment, making it a balanced pick for conservative investors.<\/p>\n
Core Data Points
\nMarket Position: Mid-cap IT services player (mcap \u20b917,500 Cr); HQ Pune, founded 1991; part of RPG Group; 11,500+ employees across 30+ global offices.
\n\u200b
\nShare Price & Valuation: CMP ~\u20b9850-\u20b9870 (Feb 2026); P\/E 23.6x TTM, EV\/EBITDA 12.5x; dividend yield 1.2% (\u20b910\/share FY25). Trades at 3.8x sales vs. IT peer median 4.2x.
\n\u200b
\nOwnership: Promoters 24%; FIIs 23%; DIIs 25%; public 28%. Stable promoter stake with low pledging (0%).<\/p>\n
Latest Financials (Point-Wise)
\nRevenue: FY25 \u20b95,281 Cr (+7.7% YoY); 9M FY26 \u20b94,200 Cr (+8% YoY); Q3 FY26 \u20b91,431 Cr (+7.9% YoY, +2% QoQ). Constant currency growth 9.2%.<\/p>\n
EBITDA & Margins: FY25 EBITDA \u20b9815 Cr (margin 15.4%); Q3 FY26 \u20b9251 Cr (17.5% margin, +190 bps YoY) due to utilisation rise to 82% and pyramid optimisation.
\n\u200b<\/p>\n
PAT: FY25 \u20b9740 Cr (+10% YoY); Q3 FY26 \u20b9200 Cr (+25% YoY); EPS \u20b924.6 TTM. ROE 20.1% (5Y avg 15%), ROCE 25.8%.
\n\u200b<\/p>\n
Balance Sheet: Debt\/Equity 0.01x; cash + investments \u20b92,240 Cr; working capital days 70 (stable); capex FY25 \u20b9150 Cr focused on data centres\/AI.
\n\u200b<\/p>\n
Order Book: TCV FY26 $774 Mn (+30% YoY, 55% AI-led); new logos 10 in Q3; pipeline $3 Bn.<\/p>\n
Services Portfolio
\nCore Offerings: Digital transformation via Zensar DIGVOLVE (AI\/ML, cloud, IoT, cybersecurity); application dev\/management, data engineering, BPM.<\/p>\n
Verticals Breakdown: BFSI 35%, Hi-tech\/Manufacturing 30%, Healthcare\/Media 20%, Energy\/Utilities 15%. Shift to product engineering (25% revenue).<\/p>\n
Key Differentiators: 70% repeat business; AI Factory (GenAI pilots for 20 clients); partnerships with AWS, Microsoft, ServiceNow; IP assets like Nex-Z platform.<\/p>\n
Elaborated Growth Drivers
\nAI & Digital Deals: 30% TCV AI-led ($232 Mn in FY26); Q3 wins include $210 Mn BFSI managed services (5.5Y), $50 Mn hi-tech deal. Targets 15% CC growth FY26 via 1,000+ AI opportunities.<\/p>\n
Geographic\/Geography Expansion: US 60% revenue (up 10% YoY), Europe 25%, India\/APAC 15%; new centres in Poland, Mexico for nearshore delivery.<\/p>\n
Margin Levers: Utilization 82% (up 200 bps), attrition 12% (industry 18%); offshoring to India 70% (from 60%); pricing +2-3% annually. Guides 16-17% EBITDA FY26.<\/p>\n
M&A & Investments: \u20b9500 Cr war chest for tuck-ins in AI\/cloud; recent bolt-ons like WebSource (data mgmt) boost capabilities.
\n\u200b
\nSector Tailwinds: BFSI digitisation, manufacturing re-shoring, healthcare AI; $1 Tn global IT spend growth by 2027 favours mid-tier agility. Expects 12-14% CAGR to FY28.<\/p>\n