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Zensar Technologies Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤22nd Jan 26

Summary : Zensar Technologies reported strong Q3 FY26 consolidated financial results with increased revenue and profit, and declared an interim dividend, despite a one-time impact from new Labour Codes.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total expenses: Q3 FY26 at INR 12,034 Million (up from INR 11,460 Million in Q3 FY25).
  2. Consolidated Employee benefits expense: INR 8,953 Million (Q3 FY26).
  3. Consolidated Subcontracting costs: INR 1,862 Million (Q3 FY26).
  4. Exceptional item - Statutory impact of new Labour Codes: INR 254 Million (Consolidated, Q3 FY26).
  5. Consolidated Revenue from operations: Q3 FY26 at INR 14,307 Million (up from INR 13,256 Million in Q3 FY25).
  6. Consolidated 9M FY26 Revenue from operations: INR 42,370 Million (up from INR 39,217 Million in 9M FY25).
  7. Segment Revenue - Digital and Application Services: INR 11,124 Million (Q3 FY26).
  8. Segment Revenue - Cloud Infrastructure and Security: INR 3,183 Million (Q3 FY26).
  9. Consolidated Total Assets: INR 56,133 Million as of December 31, 2025.
  10. Consolidated Trade receivables: INR 7,898 Million as of December 31, 2025.
  11. Consolidated Unbilled revenue: INR 4,054 Million as of December 31, 2025.
  12. Consolidated Goodwill: INR 9,588 Million as of December 31, 2025.
  13. Consolidated Other equity: INR 40,243 Million as of March 31, 2025.
  14. Both standalone and consolidated financial results are presented.

Corporate Overview

  1. Global presence with subsidiaries in USA, UK, South Africa, Singapore, Mexico, Germany, Canada, Netherlands, Colombia, India, Serbia.
  2. Statutory impact from new Labour Codes on employee benefits.
  3. Provides Digital and Application Services.
  4. Offers Cloud Infrastructure and Security solutions.
  5. Formal and informative, reporting board meeting outcomes.
  6. Digital and Application Services
  7. Cloud Infrastructure and Security

Risk Factors

  1. New Labour Codes impact expenses.
  2. Regulatory changes pose compliance challenges.
  3. Monitoring government clarifications is crucial.

Key Drivers

  1. Interim dividend declared, rewarding shareholders.
  2. Strong revenue growth across segments.
  3. Significant increase in net profit.
  4. Positive earnings per share trend.

Auditor’s Report

  1. Review report, not an audit opinion.
  2. No material misstatement noted in the unaudited financial results.

Board Commentary

  1. Declared an interim dividend of INR 2.40 (120%) per equity share.
  2. Statutory impact of new Labour Codes on employee benefits expenses.
  3. Impact of new Labour Codes (Code on Wages, Industrial Relations Code, Social Security Code, Occupational Safety, Health and Working Conditions Code).

Corporate Governance

  1. Audit Committee reviewed and recommended financial results.

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalization of Central/State Rules for new Labour Codes.

Performance Drivers

  1. Growth in Digital and Application Services segment.
  2. Growth in Cloud Infrastructure and Security segment.

Risk Control Measures

  1. Continuously monitoring government clarifications on Labour Codes.

Critical Risks

  1. Incremental impact of new Labour Codes on employee benefits expenses.
Zensar Technologies Ltd (ZENSARTECH) Quarterly Report Analysis & Insights | Dhanarthi