Zensar Technologies Ltd Q3 FY26 — ₹1,431 Cr Revenue, PAT rockets 37% YoY, EPS power-up to ₹33+ (annualised), yet stock sulks at 21× PE

1. At a Glance — Blink and you’ll miss the punchline

Zensar Technologies is that mid-cap IT cousin who quietly clears exams, gets a solid job abroad, sends money home, but still gets ignored at family weddings. Market cap sits around ₹15,988 Cr, CMP near ₹703, down ~10% in 3 months, while Q3 FY26 profits casually jump 37% YoY.
Revenue clocked ₹1,431 Cr this quarter, PAT ₹200 Cr, EBITDA margin flirting with 17%, and debt is basically on a starvation diet (₹117 Cr, D/E 0.03). ROCE at 21%, ROE at 16%, dividend yield ~1.8% — very sanskaari IT stock behaviour.

Yet valuation? 21× earnings, below industry PE of ~24×. Not screaming cheap, not screaming expensive — just sitting there like a confused CAT aspirant after mock tests.

Question: Is the market blind, or is Zensar just boringly efficient?

2. Introduction — The RPG Group’s quiet tech monk

Zensar belongs to the RPG Group — a conglomerate that likes to keep drama low and balance sheets clean. No loud acquisitions every quarter, no “AI-first blockchain metaverse” buzzwords every earnings call. Instead, Zensar sticks to what it knows: digital engineering, application services, and infrastructure management.

This is not a company chasing moonshots. It’s the guy running marathons, not sprints. Over the last few years, Zensar has deliberately shifted away from low-margin legacy work toward digital + cloud + data engineering, while keeping costs under control like a paranoid auditor.

But here’s the catch — growth is steady, not sexy. Five-year sales CAGR ~5%. Profits have improved