ZENSARTECH's Q2 FY27 numbers came in strong, with revenue of Rs. 1,585.20 Cr (+11.53% YoY) and PAT growth of +4.39% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,585.20 Cr (+11.53% YoY) |
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| PAT (Q2) | Rs. 190.20 Cr (+4.39% YoY) |
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| EBITDA margin | 15.75% (+27 bps YoY) |
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| EPS (Q2) | Rs. 8.33 (+3.87% YoY) |
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| Market cap | Rs. 12,252.53 Cr |
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| CMP | Rs. 538.00 |
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Quarter Snapshot
Zensar delivered its cleanest quarter of the FY27 ramp with revenue up 11.53% YoY and EBITDA margin recovering 111 bps QoQ to 15.75%, within the guided 14-16% band and ahead of the 'Q2 better than Q1' commitment. The offset is PAT growth of only 4.39% YoY, dragged by a 51% YoY subcontracting rise, a 46% YoY D&A step-up, and H1 FCF of just Rs.21.5 Cr as unbilled revenue built 33% QoQ during the mega-deal ramp. The Q3 FY27 full-fledged mega-deal revenue and guided margin improvement from Q3 are the near-term catalysts, though the double-digit profit growth commitment requires a material H2 acceleration.
Key Investment Insights
Key Positives
- Revenue grew 11.53% YoY to Rs.1,585.2 Cr and 5.10% QoQ; H1 FY27 revenue Rs.3,093.5 Cr (+10.24% YoY)
- EBITDA margin recovered to 15.75%, up 111 bps QoQ and 27 bps YoY, within the guided 14-16% band; EBITDA grew 13.04% QoQ and 13.5% YoY
- Employee cost fell to 58.90% of revenue from 65.10% a year ago, nearly flat in absolute terms (+0.91% YoY)
- Digital & Application Services revenue grew 6.63% QoQ and 12.53% YoY with segment margin up 70 bps QoQ to 15.56%
- Effective tax rate of 24.49% (H1: 24.92%) inside the guided normal corporate rate ±0.5% band; exceptional items nil this quarter
- Debt-free balance sheet with Rs.2,664.8 Cr of liquid resources; ICRA AA+(Stable)/A1+ reaffirmed Aug 31, 2026
- Subsidiaries swung from near-zero PAT contribution in Q1 (Rs.0.3 Cr) to Rs.18.0 Cr in Q2
- Unbilled revenue of Rs.632.5 Cr (+33.1% QoQ) signals revenue conversion ahead as mega-deal milestones bill
Risk Factors
- PAT growth of 4.39% YoY (H1: 2.69%) lags 11.53% revenue growth, missing the double-digit profit growth commitment
- Subcontracting costs jumped 51.01% YoY to 17.52% of revenue, a structural mix shift for two consecutive quarters
- D&A rose 46.03% YoY to Rs.36.8 Cr on a permanently higher depreciation base, capping PAT growth
- CFO/PAT was 0.73x in H1 FY27 (below the 0.8x flag) and FCF was Rs.21.5 Cr vs Rs.284.1 Cr a year ago as capex rose to Rs.249.8 Cr
- Cloud, Infrastructure & Security margin compressed 214 bps QoQ and 180 bps YoY to 18.41% with revenue flat QoQ
- Other income fell 26.18% QoQ, thinning below-EBITDA support