Q1 2026 Zensar Technologies Ltd Earnings Call Transcript
Key Points
- Zensar Technologies Ltd (BOM:504067) reported a sequential Q-o-Q revenue growth of 3.3% in reported currency and 1.9% in constant currency, with notable growth in telecom, media, and technology (5.5%) and healthcare (5.2%).
- The company has successfully integrated artificial intelligence into its strategy, with AI driving 30% of its active pipeline and 20% of its order bookings.
- Zensar Technologies Ltd (BOM:504067) has improved its LTM attrition rate to 9.8%, indicating better employee retention.
- The company announced salary hikes for all employees effective July 1, setting it apart from some industry peers.
- Zensar Technologies Ltd (BOM:504067) has a healthy order book of $172 million, reflecting an 11.7% growth year-over-year, with an increasing average tenure of engagements.
- The macroeconomic environment remains challenging, with growth slowing in both the US and Europe, impacting client budgets and new spending.
- EBITDA for the quarter dropped by 40 basis points to 15.2% due to increased investment in sales, marketing, and travel expenses.
- The manufacturing and consumer services sectors experienced a decline of 4.1%, reflecting challenges in these verticals.
- Zensar Technologies Ltd (BOM:504067) anticipates macro-driven variability in client budgets, which could impact future growth.
- The company faces potential margin pressures in the coming quarters due to salary hikes and the potential implementation of an ESOP plan.
Ladies and gentlemen, good day and welcome to the Zensar Technologies Q1 FY26 earnings conference call hosted by Asian Market Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Shradha Agrawal from Asian Market Securities. Thank you. And over to you, mam.
Thank you, Huda. Good evening everyone. On behalf of Asian Market Securities, I welcome you all to Zensar Technologies Q1 FY26 earnings call. We have with us today from Zensar management team, Mr. Manish Tandon, CEO and Managing Director; Mr. Pulkit Bhandari, Chief Financial Officer; and a few other members of the senior management team.
Before I hand over the call to Manish, I would like to highlight that the Safe Harbor statement of the second side of the earnings presentation is assumed to be read and understood. Over to you, sir. Thank you.
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