Zensar Tech Q4 Results Review: IDBI Capital Upgrades Rating To 'Buy' On Steady Deal Wins Amid Macro Headwinds

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IDBI Capital Report

Zensar Technologies Ltd. posted quarterly revenue of $156.8 million, marking a modest improvement of 0.9% sequentially and 6.3% on a year-over-year basis in constant currency terms. This performance was primarily driven by sustained strength in deal wins, with order bookings consistently exceeding $200 million in recent quarters.

Management remains optimistic about the continuity of this deal momentum, anticipating it will underpin growth over the near term despite macroeconomic uncertainties. The company acknowledged emerging challenges during Q4 FY25, with expectations that these headwinds will persist into upcoming quarters.

Zensar flagged a postponement in project commencements, elongated client decision cycles, and increasingly cautious spending patterns since January.

To mitigate this, the company plans to reinvest its margin gains (above mid-teens) into business growth. Taking these dynamics into account, we retain a constructive stance on the firm’s long-term prospects and revise our recommendation to Buy (from Hold), assigning a target price of Rs 810 based on a valuation of 22.5 times FY27E earnings per share.

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