Zensar Technologies Limited (ZENSARTECH)
Small CapIT stocks · Small cap · NSE
Zensar Technologies Limited is an IT services company based in Pune, India, serving clients across North America, UK & EU, and Africa. It operates in BFSI, MCS, HLS, and TMT verticals, focusing on digital transformation and AI-native solutions.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is supportive, but price trend argues for patience. Suitable for staggered entry or watchlist confirmation rather than aggressive buying.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 22/100margin compression · Rev +9% YoY · PAT +1% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,508 Cr | +8.9% | +4.0% |
| EBITDA | ₹221 Cr | +4.7% | -6.4% |
| Operating margin | 15.0% | +0 bps | -100 bps |
| PAT | ₹184 Cr | +1.1% | -12.8% |
| PAT margin | 12.2% | -94 bps | -235 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Zensar Technologies reported +3.1% YoY revenue growth to $643.7M in FY26, with EBITDA margin expanding +50 bps YoY to 16.0%. Net cash position improved 7.2% YoY to $319.5M, and voluntary attrition decreased 10 bps YoY to 9.8%.
Despite a challenging macro environment and industry headwinds, Zensar delivered modest revenue growth and improved profitability in FY26. The strategic pivot to an AI-native organization and focus on large deals are critical for future growth, but execution risk remains.
Transforming Zensar Into an AI-Native Organization
Strategic focus to embed AI across enablers, industries, services, and outcomes, with 85%+ AI-Native Workforce.
Winning & Executing large deals
Identified as a key strategic focus area for FY27.
Strengthening Verticalization solutioning
A strategic focus area for FY27 to enhance industry-specific offerings.
Improving Farming Efficacy to Accelerate growth
A strategic focus area for FY27, indicating efforts to deepen existing client relationships.
CIS Experience Center
Inaugurated a new CIS Experience Center in Pune, designed to bring infrastructure to life.
European Technology Delivery Center
Expanded European footprint with the inauguration of a new Technology Delivery Center in Belgrade, Serbia.
Enterprise AI Adoption
Enterprise adoption of Artificial Intelligence is gaining traction, creating new opportunities for AI-native offerings.
Offshore Expansion
Accelerated work transfer to India, impacting revenue for Indian IT firms.
GCC proliferation
Growth of Global Capability Centers (GCCs) from 1,285 in FY19 to 1,800 in FY25, eating into IT firm’s share.
Client Budget Cuts
Higher input costs and reduced discretionary tech spend by clients.
NASSCOM revised projections
Revision to $350B by 2030 from $350B by 2026, with low single-digit growth expected for the industry.
US Immigration tightens
Tightening US immigration policies may impact talent mobility and project execution.
Geopolitical Uncertainties
Tariff, trade, and geopolitical uncertainties pose risks to global business operations.
AI Challenges
Challenges with data, governance, and ROI in enterprise AI adoption could hinder implementation.
Stock Market Reaction
Nifty IT Index declined 25% in 2026 (as of April), with firms dependent on heavy U.S. revenues hit hardest.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The investor presentation primarily highlights annual performance figures (FY26 vs. FY25 or previous fiscal years), making year-over-year comparison most relevant for assessing long-term trends and business cycles in IT services.
Total Revenue
$643.7M, +3.1% YoY
Gross Margin
31.9%, +220 bps YoY
EBITDA Margin
16.0%, +50 bps YoY
Net Profit Margin
13.5%, +120 bps YoY
AI-Native Transformation
Management is focused on transforming Zensar into an AI-Native Organization by design and in practice, aiming for 85%+ AI-Native Workforce.
Strategic Partnerships
Strengthening Advisors & Alliance relationships is a key focus, backed by a strong partnership ecosystem.
Client Engagement
Emphasis on client centricity, evidenced by 125+ client visits in FY26 and the opening of multiple Centers of Excellence.
Shareholder Returns
The Board approved a dividend of ₹15 per share for FY26, reflecting approximately 44% of Earning per share paid out.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AI-Native Workforce | 85%+ AI certified workforce | Monitor progress on AI-native workforce certification and its impact on project wins and delivery efficiency. |
| Order Book Growth | $912.7M, +17.8% YoY | Watch for continued growth in order book, especially AI-influenced deals, as an indicator of future revenue. |
| Customer Satisfaction Index | 74.6, +60 bps YoY | Track customer satisfaction index for sustained improvement, indicating successful project delivery and client retention. |
| Voluntary Attrition (LTM) | 9.8%, -10 bps YoY | Monitor attrition rates to ensure talent retention amidst industry competition and demand for AI skills. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
35Bearishfull bear SMA stack · SMA20 -6.9% / mo · MACD − · near 52W low
Technical chart
ZENSARTECHdaily · 1Y · AUTO-15.9%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 40.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~7.4% over last month) — short-term momentum negative.
- RSI(14) at 40 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 47% off 52W high · 9% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 10.5% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -5.1%.
- Both 3-month and 6-month returns are negative.
Valuation & score drivers
U-Score 76 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 76 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.2%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 60.0%.
Main drags
- Valuation is weaker at 16/30; verify the latest quarterly trend.
- Quality is weaker at 12/20; verify the latest quarterly trend.
- Growth is weaker at 20/25; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 99th percentile of the scored universe and 98th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · IT: 98th pctile, median 69 · Small: 99th pctile, median 66
145 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.2%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.02.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 13.20
- P/B
- 2.23
- EV/EBITDA
- 10.35
- Market Cap
- 10504.00Cr
Profitability
- ROE
- 17.30%
- ROCE
- 22.80%
- ROA
- 12.78%
- Dividend Y
- 3.25%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- 34.00%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- 77.17×
- Altman Z
- 7.48
- Book Value
- 207.00
Cash Flow
- FCF Yield
- 5.21%
- FCF Positive Y
- 11/5
- OCF
- 771.00 Cr
- EPS TTM
- 34.14
Shareholding
- Promoter Hold
- 49.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 9%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.