1. Opening Hook
AI may be the new religion in tech, but Zensar’s quarterly sermon sounded more like a cautious prayer. The company unveiledZenseAI, its shiny new agentic AI platform—because apparently, every tech firm now needs an “AI something.” Yet amid all the buzzwords, the TMT vertical quietly slipped into a slump, reminding everyone that even chatbots can’t fix macro slowdowns.Stick around — because by the end of this, you’ll know whether Zensar’s “AI-led growth” is real gold or just fool’s metal. 💻✨
2. At a Glance
- Revenue up 4.2% YoY:Barely jogging, but management insists it’s a “steady stride.”
- Sequential growth 0.5%:More coffee break than acceleration.
- EBITDA at 15.4%:Margins meditating despite salary hikes.
- PAT at 12.8%:CFO’s happy place — tidy and consistent.
- Attrition at 9.8%:IT’s version of “employee loyalty.”
- Cash $293M:The war chest that’ll fund the next “AI-first” headline.
- Order Book $158.7M:Book-to-bill 1.02x — just enough to keep optimism caffeinated.
3. Management’s Key Commentary
“We launched ZenseAI, our next-gen agentic AI platform.”(Translation: Because every CEO now wakes up with a GenAI strategy.)
“Revenue grew 4.2% YoY, with strong BFSI and healthcare momentum.”(Translation: If TMT hadn’t nosedived, we might’ve cracked a smile.)
“TMT declined 9.9% due to client CapEx priorities.”(Translation: Our clients chose GPUs over humans. Can’t blame them, really.)
“Attrition under 10% for the third consecutive quarter.”(Translation: Finally, fewer LinkedIn job updates from our staff.) 😏
“We absorbed salary hikes without hurting margins.”(Translation: CFO pulled a financial yoga pose — flexible yet unbroken.)
“AI-influenced deals now form 28% of order bookings.”(Translation: The word ‘AI’ appears in almost every RFP title now.)
“Q3 will be a weak quarter, as always.”(Translation: Don’t expect miracles while Santa’s still debugging his code.)
“We remain optimistic despite TMT weakness.”(Translation: We’ll say ‘AI’ five more times till the market claps.)
4. Numbers Decoded
| Metric | Q2FY25 | Q2FY26 | Change | Comment |
|---|---|---|---|---|
| Revenue (USD mn) | 156.2 | 162.8 | +4.2% | Barely keeping pace with inflation. |
| EBITDA Margin | 15.2% | 15.4% | +20 bps | CFO deserves an extra coffee. |
| Gross Margin | 30.5% | 31.0% | +50 bps | Utilization magic at play. |
| PAT Margin | 12.2% | 12.8% | +60 bps | AI apparently pays better than it codes. |
| Book-to-Bill | 1.04x | 1.02x | — | Pipeline’s healthy, conversion’s lazy. |
| Attrition | 9.9% | 9.8% | Flat | HR finally breathing easy. |
| Cash (USD mn) | 275 | 293 | +6.5% | Dividend paid, wallet still thick. |
Margins are stable, but growth’s crawling — more chess than sprint.
5. Analyst Questions
Q:TMT vertical down again—has it bottomed?A:“Clients spending on GPUs, not people.”(Translation: Silicon is replacing salaries.)
Q:Book-to-bill under 1x—worried?A:“Paranoid, yes. Worried, no.”(Translation: Same thing, but said cooler.)
Q:Any big deals?A:“Pipeline’s strong, it’s just timing.”(Translation: Fingers crossed till Q4.)
Q:Impact of salary hikes?A:“We absorbed them with discipline.”(Translation: Coffee cutbacks saved the day.)
Q:Is AI actually generating revenue?A:“28% AI-influenced bookings.”(Translation: If it’s got a dashboard, we call it AI.)
6. Guidance & Outlook
Zensar isn’t giving numeric guidance—classic IT industry move—but the tone screamedcautiously hopeful. Management expects margins to hold mid-teens,
