Zensar Technologies is a mid-cap IT services company with about 66% of revenue from the US, reporting into a quarter where the rupee's slide to 95.72-95.99 against the dollar by end-September supports INR realizations while discretionary tech spending stays uneven. The print will speak to two things: whether EBITDA margin holds the guided 14%-16% band while the $210M mega-deal transition drag runs, and whether the mega-deal ramp delivers the 'Q2 better than Q1' revenue improvement management committed to.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 15,083 Mn (Rs. 1,508.3 Cr), +3.99% QoQ and +8.90% YoY in INR |
| Previous quarter PAT | Rs. 1,838 Mn (Rs. 183.8 Cr), -12.73% QoQ, +0.99% YoY |
| Previous quarter EBITDA margin | 14.6% |
| Market cap | Rs. 11,252.8 Cr |
| CMP | Rs. 494.1 |
Per the board meeting intimation dated October 7, 2026, the Board will meet on Wednesday, October 28, 2026 to approve unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026. The trading window has been closed from October 1, 2026 and reopens 48 hours after results declaration.
The quarter is a test of management's guided path: 'Q2 will be better than Q1' on revenue, EBITDA margin in a similar range to Q1's 14.6% within the 14%-16% FY27 band, and the large-deal transition drag lapsing from Q3. The rupee sat at 95.72-95.99 across the fortnights ended September 15 and September 30, 2026 versus ~92.65-92.72 in mid-April, a realization tailwind on the ~66% US-billed revenue, while NASSCOM's September 2026 review showed Indian tech revenues +1% QoQ and +4.4% YoY with BFSI leading vertical growth at +4.4% YoY. BFSI, Zensar's largest vertical at 48.8% of revenue, grew +8.3% QoQ cc in Q1 even excluding the $210M mega deal, whose ramp is guided to reach full-fledged revenue by Q3 FY27. Offsets are real: TMT declined -28.0% YoY cc in Q1 with management calling the weakness structural and risk 'more to the downside than on the upside', HLS is guided 'at least flat' in FY27, and the order book stood at $149.2M against a $180-200M standard quarterly intake target. Incremental cost heads include the H-1B extension-fee rule effective September 9, 2026 ($4,000 per H-1B and $4,500 per L-1 extension for covered employers) and the September 17, 2026 EPF wage-ceiling notification to Rs. 25,000/month, though the latter lands only in the quarter's final two weeks. The call will likely be pressed on whether the double-digit profit growth commitment survives the Q1 PAT print of -12.73% QoQ, and on quantifying the mega deal's revenue contribution, which management has previously declined to disclose.
EBITDA margin vs mid-teens FY27 guidance: Q1 FY27 printed 14.6%, the lower end of the guided band, with ~2% of the QoQ contraction from mega-deal pre-staffing and transition.
$210M mega-deal ramp and 'Q2 better than Q1' test: The largest deal in company history began ramping in Q1 FY27 with full-fledged revenue guided by Q3 FY27.
Order intake and book-to-bill normalization: The order-book series is distorted by the mega-deal booking of $401.8M in Q4 FY26 versus $149.2M in Q1 FY27.
Vertical guidance tracking: BFSI is the only growing vertical; TMT, HLS and MCS carry stated cautions.
M&A and capital deployment: US subsidiary mergers completed during the quarter; a scaled acquisition remains under evaluation.
CFO Pulkit Bhandari has reaffirmed mid-teens EBITDA margin within a 14%-16% band for FY27 as a whole, saying 'there may be a quarter where it can basically vary slightly'. Q1 FY27 printed 14.6%, and management guided a similar range for Q2 and Q3 FY27 with improvement from Q3 onwards.
The $210M deal, the largest in Zensar's history, began its revenue ramp in Q1 FY27 with full-fledged revenue expected by Q3 FY27. Management has declined to disclose the deal's specific revenue contribution, though an analyst modeled roughly $9-10M per quarter starting Q2 FY27.
Management has called the TMT weakness structural rather than cyclical, with clients rationalizing operating expense to fund capex — 'GPUs or people, not both' — and retained business seeing discounts of about 30% with in-sourcing. No growth is budgeted for the top TMT client in FY27, and management sees the risk as 'more to the downside than on the upside'.
Management targets a book-to-bill ratio above 1.1x with a standard quarterly order intake of $180-200 million, while framing 0.9x-1.1x as an aspiration reflecting mega-deal lumpiness. The Q1 FY27 order book stood at $149.2M against $401.8M in Q4 FY26, a distortion management attributed to the large mega-deal booking.
Q1 FY27 revenue rose 3.99% QoQ and 8.90% YoY in INR to Rs. 15,083 Mn, though USD revenue of $159.5M declined 1.5% YoY on currency translation. Growth was led by BFSI, up 8.3% QoQ in constant currency and 14.7% YoY, while TMT fell 28.0% YoY cc.