Zensar Technologies reports steady Q2 growth despite TMT challenges

Zensar Technologies reported Q2 FY26 revenues of $162.8 million, reflecting 4.2% year-over-year growth in reported currency and 3.4% in constant currency. Sequential growth stood at 0.5% in reported currency. The company’s gross profits improved to 31.0%, a sequential increase of 50 basis points, while EBITDA improved to 15.4%, a sequential increase of 20 basis points. Net profit for the quarter was 12.8%.

The company saw revenue increases in banking and financial services (5.6%) and healthcare and life sciences (3.9%), with manufacturing and consumer services remaining flat (0.1%). However, telecommunication, media, and technology (TMT) declined by 9.9%, attributed to increased capital and operational expenditure rationalization in the sector. Despite wage hikes impacting profitability by approximately 2%, the company maintained mid-teen margins through improved utilization, favorable exchange gains, and cost control.

Zensar launched ZenseAI, an agentic AI platform, to drive enterprise innovation, with 28% of Q2 order bookings being AI-influenced. The company reported an order book of $158.7 million for the quarter, with a book-to-bill ratio of 1.02 for the first half of the year, indicating sustainable business momentum. Voluntary attrition remained stable at 9.8% for the third consecutive quarter.