Zensar Technologies Hopeful Of Modest Growth In Q2 Amid Global Challenges, Says MD Manish Tandon
The MD said the company has witnessed continued momentum in deal wins, particularly in BFSI and healthcare segments.
Following a strong Q1 FY26 performance, Zensar Technologies remains cautiously optimistic about maintaining sequential growth in Q2 amid the challenging environment for IT companies.
Speaking to NDTV Profit on Wednesday, the IT solutions provider’s MD and CEO, Manish Tandon, acknowledged the challenging market environment influenced by global uncertainties and trade tensions.
“We grew 3.3% sequentially in reported currency and 1.9% in constant currency, while maintaining our Ebitda margins within range. The market continues to be tough. However, we believe we will continue to see some sequential growth,” he said.
According to Tandon, the company has witnessed continued momentum in deal wins, particularly in BFSI (Banking, Financial Services, and Insurance) and healthcare segments. Hence, even though the situation isn’t ideal, Zensar Technologies is hopeful of modest growth moving forward.
“I think we are seeing reasonable order bookings. We continue to see momentum in BFSI. We continue to see momentum in health care licences. Some segments like (Manufacturing and Consumer Services) and TMT (Technology, Media, and Telecom) remain flattish,” he added.
He further explained that in the current uncertain environment, especially within the manufacturing sector, companies are largely focused on mandatory projects.
“In uncertain environments, it’s natural to prioritise only what’s necessary. So, anything non-discretionary spending —like compliance, regulatory requirements, M&A activities, or simply keeping the lights on—is what’s happening,” the CEO explained, outlining the broader industry scenario.
While consolidation deals are still occurring, large-scale projects have taken a back seat. Explaining this, Tandon emphasised that the impact of tariffs and trade-related uncertainty is not limited to the United States.
“This is across the board. I think tariffs are a global phenomenon and it's trade-related, so both sides are impacted by it. Uncertainty goes both ways. So, I wouldn't say that it is US-specific. We are seeing uncertainty in all the markets that we operate in,” he said, explaining the sequential growth decline in the European market.
In Q1FY26, Zensar Technologies reported revenue of Rs 1,385 crore, marking a 1.9% increase over Q4FY25. Ebitda came in at Rs 210.6 crore, showing a marginal decline of 0.9% from Rs 212.5 crore in the March quarter. Ebitda margin stood at 15.2%, slightly lower than 15.6% in the previous quarter. Profit after tax (PAT) rose 3.2% quarter-on-quarter to Rs 182 crore, up from Rs 176.4 crore in Q4FY25.
Zensar Technologies shares closed 0.58% higher at Rs 816 apiece on the NSE on Wednesday. Meanwhile, the benchmark Nifty 50 settled 0.63% higher at 25,219.9.
