Q2 Revenue Growth Guidance
Management expects Q2 to be better than Q1, driven by continued mega deal ramp-up and seasonal improvement in demand environment.
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Zensar Technologies · forward-looking guidance across the available source record.
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growth
Margin Outlook Through Q3
EBITDA and PAT margins expected to remain in similar range as Q1 for next 1-2 quarters as growth investment takes priority; margin recovery anticipated from Q3 FY27 onwards.
M&A Pipeline
Actively evaluating scaled acquisition targets in the $150-200M+ revenue range, with management noting favorable pricing environment and 2-3 assets under active consideration.
Large Deal Pipeline
Large deals ($25M+ TCV) constitute 20-30% of total pipeline, with no additional mega deals currently in the funnel but overall pipeline described as healthy.
Mid-teens EBITDA margin maintenance
Management committed to maintaining margins within mid-teens range, balancing investments in people and capabilities against cost discipline. Each quarter may see fluctuations but overall profile guidance remains unchanged.
H1 FY26 book-to-bill at 1.02x sustainable
First half B2B of 1.02x indicates sustainable business momentum. Management not unduly worried despite Q2 being a low renewal quarter with some deal slippage due to tariff uncertainty.
AI capability enrichment target
Over 5,000 employees deepened AI/GenAI/agentic AI skills via multi-tiered learning journeys; intensified focus on leadership proficiency in emerging AI areas.
TMT share declining but not abandoned
TMT share has declined from 27.1% (FY24) to 20% as management reduces exposure through natural attrition rather than aggressive exit, while focusing growth on BFS, Healthcare, and MCS.
Mid-teens EBITDA Margin Guidance Maintained
Management retains mid-teens EBITDA margin guidance while reinvesting margin gains into AI capability building and sales expansion. Some Q3 seasonal benefits (leave utilization, operational efficiencies) may reverse in Q4.
Double-Digit Profit Growth Target
CEO committed to delivering double-digit profit growth going forward, having delivered 18.2% YoY PAT growth in USD terms for Q3. Focus remains on EPS growth and shareholder value over revenue acceleration.
Volume Growth Sustainability
Management indicated offshore volume growth of 3.1% is sustainable and should translate into revenue growth with higher working days in coming quarters, particularly if volume momentum continues.
Active M&A Evaluation
Company is actively evaluating inorganic opportunities but with strict discipline—seeking strategic acquisitions that enhance long-term shareholder value rather than merely buying revenues. Cash position of $322.4M provides war chest.