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Zensar Technologies Ltd.
NSE: ZENSARTECHTechnologyInformation Technology Services
- Last close
- ₹535.50
- Day change
- −₹1.80 (−0.34%)vs
- Market cap
- ₹11,647 crIndian rupees
- Research updated
- 2 reports
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About Zensar Technologies
Zensar Technologies Ltd. is a global information technology services and solutions company. It primarily provides a comprehensive range of IT and business technology services, offering end-to-end infrastructure management, application services, and digital solutions. The company plays a critical role in aiding businesses across various sectors, including financial services, manufacturing, retail, and utilities, to harness the power of technology and innovation for operational efficiency and customer engagement. With a strategic focus on cloud-based solutions, artificial intelligence, and data analytics, Zensar Technologies helps organizations optimize their digital transformation journey. Headquartered in Pune, India, the company operates globally, tapping into the growing demand for digital solutions and IT consulting services. By leveraging its global delivery model, Zensar Technologies serves a diverse clientele, providing tailored technological solutions that drive business growth and continuity.
- Sector
- Technology
- Industry
- Information Technology Services
- Listing
- NSE: ZENSARTECH
- Chief executive
- Mr. Manish Tandon
- Employees
- 10,066
- Headquarters
- Pune, India
- ISIN
- INE520A01027
- Website
- zensar.com
Public research · Report of
Business model & financial foundation
Zensar (NSE: ZENSARTECH), IT services and digital engineering: revenue of ₹5,687 crore in FY26 (+7.7% on FY25), an EBITDA margin of 16.1%, net profit of ₹774.6 crore and net cash of ₹2,947 crore.
- Revenue, FY26 (₹ crore)
- 5,687
- consolidated
- Revenue growth, FY26
- +7.7%
- on FY25
- EBITDA margin, FY26
- 16.1%
- EBITDA (Operating EBITDA excluding other income and exceptional) / revenue
- Net profit, FY26 (₹ crore)
- 774.6
- to owners
- Return on equity, FY26
- 17.6%
- on average equity
- Net debt, FY26 (₹ crore)
- -2,947
- Debt less cash, unrestricted deposits and treasury investments
- Market capitalisation (₹ crore)
- 11,524
- at the close of 19 Oct 2026
Company profile
| Item | Value |
|---|---|
| Legal name | Zensar Technologies Limited |
| Exchange and ticker | NSE: ZENSARTECH; BSE: 504067 |
| ISIN | INE520A01027 |
| CIN | L72200PN1963PLC012621 |
| Sector | Information Technology |
| Industry | IT services and digital engineering |
| Headquarters | Pune, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | S R B C & CO LLP |
| Market capitalisation | ₹11,524 crore (19 Oct 2026) |
| Shares outstanding | 22.99 crore shares (FY26) |
| Price | ₹507.8 (close, 19 Oct 2026) |
| 52-week range | ₹416.1 - ₹822.0 (to 19 Oct 2026) |
| Website | https://www.zensar.com |
Corporate structure and shareholding
Parent: RPG Group (promoter group).
| Entity | Holding | Business |
|---|---|---|
| Zensar Technologies Inc. | 100% | US IT services |
| Zensar Technologies (UK) Limited | 100% | UK IT services |
| Zensar (South Africa) Pty Ltd | 75% | South African IT services; effective control 100%; no NCI under put/call accounting. |
Legal ownership differs from effective control in South Africa; no imputed minority deduction.
| Shareholding (% of shares) | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoter | 49.02% | 49.01% | 49.00% | 48.99% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 13.30% | 11.83% | 10.50% | 10.73% |
| Domestic institutions | 22.24% | 23.09% | 23.66% | 21.99% |
| of which mutual funds | 19.55% | 20.61% | 20.97% | 19.54% |
| Retail | 11.85% | 11.65% | 12.35% | 14.08% |
| Other | 3.58% | 4.43% | 4.48% | 4.20% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Zensar sells digital application, cloud, infrastructure and security services to enterprise clients, mainly in the US, Europe and Africa. Revenue depends on technical capacity, utilisation, realised revenue per utilised employee and rupee translation; employee and subcontracting costs dominate the cost base. The primary basis is consolidated because the operating subsidiaries carry most revenue.
| Segment | revenue, FY26 (₹ crore) | Share | result, FY26 (₹ crore) | Share | expenses allocable, FY26 (₹ crore) | Share |
|---|---|---|---|---|---|---|
| Digital and Application Services | 4,426 | 77.8% | 761.6 | 74.5% | 3,664 | 78.6% |
| Cloud Infrastructure and Security | 1,262 | 22.2% | 260.9 | 25.5% | 1,001 | 21.4% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Mphasis (MPHASIS) | Mid-cap offshore IT with banking exposure |
| Coforge (COFORGE) | Mid-cap IT; deal-led growth and acquisition execution |
| LTIMindtree (LTIM) | Diversified offshore services and margin comparator |
| Birlasoft (BSOFT) | Comparable smaller enterprise-technology services |
| Sonata Software (SONATSOFTW) | Mid-tier services; separate distribution business limits comparability |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 4,244 | 4,848 | 4,902 | 5,281 | 5,687 |
| Cost of revenue (vendor classification) * | 3,146 | 3,760 | 3,497 | 3,845 | 4,078 |
| Other operating costs (vendor classification) * | 173.4 | 295.1 | 271.3 | 324.4 | 323.0 |
| EBITDA (vendor classification) * | 793.9 | 638.5 | 991.9 | 914.6 | 1,082 |
| Operating EBIT excluding other income and exceptional | 608.8 | 470.0 | 737.9 | 714.8 | 824.8 |
| Finance costs including bank charges | 34.7 | 25.9 | 20.9 | 17.3 | 12.1 |
| Profit before tax | 574.1 | 444.1 | 875.8 | 857.7 | 1,022 |
| Total current and deferred tax | 152.4 | 116.5 | 210.8 | 207.9 | 247.1 |
| Profit for the year | 421.7 | 327.6 | 665.0 | 649.8 | 774.6 |
| Diluted EPS (₹) | 18.27 | 14.40 | 29.13 | 28.43 | 33.69 |
| Purchase of traded goods | 7.40 | 53.0 | 38.8 | ||
| Employee benefits expense | 3,102 | 3,390 | 3,631 | ||
| Subcontracting plus other operating expenses | 921.1 | 1,021 | 1,101 | ||
| Operating EBITDA excluding other income and exceptional | 871.7 | 816.7 | 916.1 | ||
| Other income (net) | 158.8 | 160.2 | 233.9 | ||
| Depreciation and amortisation | 133.8 | 101.9 | 91.3 | ||
| Signed exceptional income/(expense) | 0.00 | 0.00 | -24.9 | ||
| Non-controlling profit interest | 0.00 | 0.00 | 0.00 | ||
| Share of associates | 0.00 | 0.00 | 0.00 | ||
| Profit attributable to equity shareholders | 665.0 | 649.8 | 774.6 | ||
| Subcontracting component included in other_expenses | 608.5 | 648.2 | 738.5 | ||
| Reported other expenses component of combined other_expenses | 312.6 | 372.3 | 362.8 | ||
| Current tax | 226.2 | 202.7 | 223.9 | ||
| Deferred tax charge/(credit) | -15.4 | 5.20 | 23.2 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity | 2,687 | 2,976 | 3,562 | 4,070 | 4,719 |
| Debt including lease liabilities | 335.3 | 273.0 | 186.5 | 125.2 | 79.3 |
| Cash and cash equivalents (statutory definition) | 505.4 | 474.4 | 443.2 | 270.8 | 416.3 |
| Trade receivables net of credit-loss allowance | 799.5 | 730.0 | 732.0 | 790.1 | 924.2 |
| Total current and noncurrent trade payables | 316.4 | 277.2 | 322.4 | 345.4 | 367.4 |
| PPE net block excluding ROU/intangibles/goodwill | 178.7 | 171.9 | 81.1 | 90.8 | 105.1 |
| PPE capital work-in-progress | 1.70 | 0.00 | 5.20 | 0.60 | 1.00 |
| Total assets | 3,840 | 4,121 | 4,648 | 5,173 | 6,084 |
| Inventory | 0.00 | n.a. | n.a. | n.a. | |
| External borrowings excluding leases | 0.00 | 0.00 | 0.00 | ||
| Debt less cash, unrestricted deposits and treasury investments | -1,994 | -2,355 | -2,947 | ||
| Intangible assets under development | 0.00 | 0.00 | 175.0 | ||
| Current treasury investments | 650.6 | 1,254 | 1,659 | ||
| Noncurrent treasury investments | 757.7 | 460.0 | 261.3 | ||
| Unrestricted deposits less than 12 months | 278.8 | 470.1 | 511.6 | ||
| Bank deposits greater than 12 months | 50.2 | 26.0 | 177.8 | ||
| Total liabilities | 1,086 | 1,103 | 1,364 | ||
| Capital creditors current | n.r. | 8.20 | 177.6 | ||
| Total financial and nonfinancial unbilled revenue | 369.7 | 397.9 | 398.8 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities after tax | 350.5 | 572.8 | 642.1 | 565.0 | 770.8 |
| Free cash flow (vendor definition) * | 278.9 | 677.5 | 625.7 | 528.1 | 717.1 |
| Cash dividends paid (positive outflow) | -88.1 | -113.2 | 124.6 | 204.1 | 304.3 |
| Cash purchases PPE and intangible assets (positive outflow) | -56.8 | -33.4 | 16.4 | 36.9 | 53.7 |
| CFO less cash capex before acquisitions/dividends/leases | 625.7 | 528.1 | 717.1 | ||
| Gross business acquisition cash payments | 0.00 | 119.7 | 1.20 | ||
| Cash lease payments including interest | 69.9 | 60.4 | 40.3 | ||
| ESOP trust purchases (not issuer buyback) | 0.00 | 0.00 | 56.6 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Weighted-average diluted shares | 22.59 | 22.64 | 22.83 | 22.85 | 22.99 |
| Year-end legal issued shares before treasury deduction | 22.66 | 22.71 | 22.75 | ||
| Year-end shares excluding trust treasury holding | 22.66 | 22.71 | 22.67 | ||
| SBC component already included in employee_cost | 23.4 | 31.6 | 95.0 | ||
| CFO divided by consolidated PAT (x) | 0.97x | 0.87x | 1.00x | ||
| Cumulative three-year CFO divided by PAT (x) | 0.95x | ||||
| Net trade receivables YoY growth (%) | 7.9% | 17.0% | |||
| Revenue YoY growth (%) | 7.7% | 7.7% | |||
| Employee cost / revenue (fraction) | 0.63 | 0.64 | 0.64 | ||
| Materials cost / revenue (fraction) | 0.00 | 0.01 | 0.01 | ||
| Subcontracting / revenue (fraction) | 0.12 | 0.12 | 0.13 | ||
| Overhead / revenue (fraction) | 0.06 | 0.07 | 0.06 | ||
| Depreciation / revenue (fraction) | 0.03 | 0.02 | 0.02 | ||
| Effective tax / PBT (fraction) | 0.24 | 0.24 | 0.24 | ||
| Other income / revenue (fraction) | 0.03 | 0.03 | 0.04 | ||
| Annual closing receivable days | 55 | 55 | 59 | ||
| Annual closing payable days | 29 | 28 | 28 | ||
| Receivables + unbilled - payables | 779.3 | 842.6 | 955.6 | ||
| Revenue-implied effective FX (INR per USD) | 82.76 | 84.56 | 88.35 | ||
| Average technical headcount proxy (employees) | 9,465 | 9,546 | 9,738 | ||
| Technical utilisation excluding trainees (fraction) | 0.84 | 0.85 | 0.84 | ||
| Same-interval utilised technical revenue yield (USD per employee) | 74,765 | 77,331 | 78,410 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 1,308 | 1,326 | 1,359 | 1,385 | 1,421 | 1,431 | 1,450 | 1,508 |
| Cost of revenue (vendor classification) * | 1,024 | 1,023 | 1,062 | 1,069 | 1,089 | 1,129 | 1,178 | |
| Other operating costs (vendor classification) * | 83.1 | 95.8 | 84.2 | 105.1 | 91.5 | 85.9 | 109.5 | |
| EBITDA (vendor classification) * | 242.1 | 237.7 | 258.5 | 267.3 | 313.0 | 300.6 | 278.2 | |
| Operating EBIT excluding other income and exceptional | 171.4 | 183.2 | 188.7 | 187.5 | 194.8 | 229.7 | 213.0 | 192.3 |
| Finance costs including bank charges | 4.50 | 3.70 | 4.90 | 3.60 | 3.70 | 2.30 | 2.50 | 3.50 |
| Profit before tax after exceptional | 207.9 | 210.3 | 229.8 | 240.6 | 240.2 | 265.0 | 275.9 | 246.2 |
| Total current and deferred tax | 52.2 | 50.5 | 53.4 | 58.6 | 58.0 | 65.2 | 65.3 | 62.4 |
| Net profit after tax | 155.7 | 159.8 | 176.4 | 182.0 | 182.2 | 199.8 | 210.6 | 183.8 |
| Diluted EPS (not annualised) (₹) | 6.82 | 6.98 | 7.68 | 7.92 | 7.93 | 8.67 | 9.15 | 7.99 |
| Purchase of traded goods | 17.2 | 16.8 | 14.7 | 7.80 | 11.9 | 7.80 | 11.3 | 10.8 |
| Employee benefits expense | 843.1 | 846.3 | 885.3 | 876.1 | 925.2 | 895.3 | 934.6 | 922.3 |
| Subcontracting plus other operating expenses | 246.7 | 255.5 | 246.4 | 290.5 | 264.2 | 277.7 | 268.9 | 354.3 |
| Company operating EBITDA excluding other income and exceptional | 201.1 | 206.9 | 212.5 | 210.6 | 220.0 | 250.0 | 235.7 | 220.8 |
| Other income (net), including exchange gain/loss | 41.1 | 30.7 | 46.0 | 56.7 | 49.1 | 63.1 | 65.0 | 57.3 |
| Depreciation and amortisation expense | 29.7 | 23.7 | 23.8 | 23.1 | 25.2 | 20.3 | 22.7 | 28.5 |
| Signed exceptional income/(expense) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -25.4 | 0.50 | 0.00 |
| Profit attributable to owners | 155.7 | 159.8 | 176.4 | 182.0 | 182.2 | 199.8 | 210.6 | 183.8 |
| Noncontrolling profit interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Share of associates | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 12.2% | 14.2% | 1.1% | 7.7% | 7.7% |
| EBITDA margin | 17.8% | 15.5% | 16.1% | ||
| Net margin | 13.6% | 12.3% | 13.6% | ||
| Return on equity | 20.3% | 17.0% | 17.6% | ||
| Return on capital employed | 21.2% | 15.0% | 21.1% | 18.0% | 18.3% |
| Return on assets | 15.2% | 13.2% | 13.8% | ||
| Net debt (₹ crore) | -1,994 | -2,355 | -2,947 | ||
| Net debt / EBITDA | -2.29x | -2.88x | -3.22x | ||
| Interest cover | 17.5x | 18.1x | 35.3x | 41.3x | 68.2x |
| Asset turnover | 1.17x | 1.22x | 1.12x | 1.08x | 1.01x |
| Receivable days | 69 | 55 | 55 | 55 | 59 |
| Inventory days (on revenue) | 0 | ||||
| Payable days (on revenue) | 27 | 21 | 24 | 24 | 24 |
| Cash conversion | 0.97x | 0.87x | 1.00x | ||
| Capex intensity | 1.3% | 0.7% | 0.3% | 0.7% | 0.9% |
| Free cash flow (₹ crore) | 293.7 | 539.4 | 625.7 | 528.1 | 717.1 |
| Dividend payout | 18.7% | 31.4% | 39.3% | ||
| EPS, diluted (₹) | 18.27 | 14.40 | 29.13 | 28.43 | 33.69 |
| Book value per share (₹) | 119.0 | 131.5 | 156.0 | 178.1 | 205.3 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (Operating EBITDA excluding other income and exceptional) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Debt less cash, unrestricted deposits and treasury investments; negative is net cash.
- Net debt / EBITDA: net debt / EBITDA (Operating EBITDA excluding other income and exceptional).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 2, information to 19 Oct 2026); market data at the close of 19 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Zensar Technologies includes
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- The 12-month rating and target
- The 3-month view
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- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Zensar Technologies
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Prices are the last close on the NSE, 30 Oct 2026. Research from Mool’s report of 19 Oct 2026; page updated 2 Nov 2026.
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