Shares of Zensar Technologies Ltd fell over 2% on Wednesday morning to around ₹794.50, despite the company reporting steady growth in its Q1 FY26 results released on July 22.
The mid-sized IT services company posted a net profit of ₹182 crore, up 15.3% YoY and 3.2% QoQ, led by growing traction in AI-led deals. Revenue in rupee terms rose 4.9% YoY to ₹1,385 crore, while dollar revenue stood at $162 million, growing 3.3% QoQ and 4.9% YoY. EBITDA margins remained flat at 15.2%, and deal wins came in strong at $172 million, up 11.7% YoY.
From a vertical perspective, Banking & Financial Services continued to lead with 41.5% revenue share, while Healthcare & Life Sciences grew 16.5% YoY in constant currency. However, Telecommunication, Media & Technology saw a 5.5% YoY decline.
The modest reaction in the stock price could be attributed to muted growth in certain verticals, flat margins, and cautious management commentary on macro uncertainties. While deal wins and profitability improved, the market seems to be factoring in execution risks amid a challenging global environment.
At the time of writing, Zensar shares were trading about 2.1% lower, reflecting profit-booking and tempered expectations after the Q1 results.
