Zensar Technologies Limited (ZENSARTECH) AI Stock Analysis

• Market Cap: ₹162.04B
• Dividend Yield: 1.75%
• Average Volume (3M): 52.40K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.24
• Revenue Growth: 9.16%
• EPS Growth: 7.77%
• Country: IN
• Employees: 9,689
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 7.90
• Shares Outstanding: 227,408,020
• 10 Day Avg. Volume: 71,508
• 30 Day Avg. Volume: 52,402
• PEG Ratio: -10.06
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 29.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹746.00 ▲(6.69% Upside)

Zensar Technologies' strong financial performance is the most significant factor, reflecting robust revenue growth and efficient operations. However, technical analysis indicates bearish momentum, which negatively impacts the stock score. The valuation is moderate, with a reasonable P/E ratio and a modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to invest in growth opportunities.

Cash Generation

Strong cash generation supports ongoing operations and strategic investments, enhancing the company's ability to grow sustainably.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting future growth.

Net Profit Margin Decrease

A declining net profit margin indicates rising costs, which could pressure profitability if not managed effectively.

Increased Liabilities

Rising liabilities, if unchecked, can strain financial resources and impact the company's ability to invest in growth initiatives.

Zensar Technologies Limited Business Overview & Revenue Model

Company Description

Zensar Technologies Limited, a digital solutions and technology services company, provides information technology (IT) services and solutions in the United states, Europe, and internationally. It operates through Digital and Application Services and Digital Foundation Services segments. The company also offers experience services, include product/experience research, strategy and design, experience engineering, and marketing technology services, as well as creative, content, brand, and campaign services; advanced engineering services, such as digital engineering, application transformation, and cloud strategy and assessment; data engineering and analytics services, include data engineering, artificial intelligence and machine learning, automation, and visualization and analytics; application services, such as application management, quality engineering, oracle, salesforce, and SAP; and foundation services, include digital infrastructure, workplace, experience management, operations, and security. It serves manufacturing, retail, media, banking, insurance, healthcare, and utilities industries. The company was incorporated in 1963 and is headquartered in Pune, India.

How the Company Makes Money

Zensar Technologies generates revenue primarily through its IT service offerings, which include consulting, application development, and managed services. The company's revenue model is built on a combination of project-based contracts and long-term service agreements with clients. Key revenue streams include digital transformation projects, maintenance services, and license fees from software products. Zensar also benefits from strategic partnerships with major technology providers, which enhance its service portfolio and market reach. Additionally, the firm leverages its expertise in emerging technologies to attract clients looking to modernize their IT infrastructure, thus contributing significantly to its earnings.

Zensar Technologies Limited Financial Statement Overview

Summary

Zensar Technologies demonstrates strong financial health with robust revenue growth and efficient operations. The company maintains a stable balance sheet with low leverage and strong equity backing. Although cash flow remains strong, there is a slight decline in free cash flow, warranting close monitoring of future capital investments.

Income Statement

Zensar Technologies has shown strong revenue growth from 2024 to 2025, with a revenue growth rate of 7.73%. The gross profit margin stands at 22.52%, indicating efficient cost management. However, the net profit margin decreased to 12.31% from 13.57% in the previous year, suggesting higher costs or expenses in the latest year. The EBIT margin improved significantly to 22.52% from 22.15%, showing increased operational efficiency.

Balance Sheet

The company maintains a healthy financial position with a low debt-to-equity ratio of 0.03, indicating low leverage. The equity ratio is high at 78.70%, demonstrating financial stability. Return on equity is strong at 15.97%, suggesting effective use of equity capital. However, the total liabilities have increased slightly, which could pose a risk if not managed properly.

Cash Flow

Operating cash flow is solid at 5.65 billion, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is 0.81, indicating efficient cash conversion from profits. However, free cash flow decreased compared to the previous year, reflecting increased capital expenditures or investment activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	53.77B	52.81B	49.02B	48.48B	42.44B	37.81B
Gross Profit	12.24B	10.05B	11.21B	6.33B	7.07B	7.50B
EBITDA	9.61B	8.17B	10.30B	6.55B	7.96B	6.47B
Net Income	6.74B	6.50B	6.65B	3.28B	4.16B	3.00B
Balance Sheet
Total Assets	0.00	51.73B	46.48B	41.21B	38.71B	34.33B
Cash, Cash Equivalents and Short-Term Investments	19.95B	19.97B	13.82B	11.77B	10.24B	10.58B
Total Debt	0.00	1.25B	1.86B	2.73B	3.35B	3.50B
Total Liabilities	-40.70B	11.03B	10.86B	11.45B	11.84B	10.62B
Stockholders Equity	40.70B	40.70B	35.62B	29.76B	26.87B	23.42B
Cash Flow
Free Cash Flow	0.00	5.28B	6.26B	6.78B	2.78B	8.19B
Operating Cash Flow	0.00	5.65B	6.42B	7.14B	3.35B	8.58B
Investing Cash Flow	0.00	-4.88B	-4.75B	-5.28B	-168.00M	-5.28B
Financing Cash Flow	0.00	-2.65B	-1.97B	-2.19B	-1.83B	-4.67B

Zensar Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 699.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZENSARTECH, the sentiment is Negative. The current price of 699.2 is below the 20-day moving average (MA) of 718.28, below the 50-day MA of 724.54, and below the 200-day MA of 768.42, indicating a bearish trend. The MACD of -6.67 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 45.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZENSARTECH.

Zensar Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RATEGAIN	74 Outperform	₹76.90B	37.20	―	―	5.96%	10.11%
INTELLECT	73 Outperform	₹127.23B	32.15	―	0.69%	15.87%	39.55%
BSOFT	72 Outperform	₹115.27B	25.58	―	1.42%	-2.00%	-25.81%
SONATSOFTW	69 Neutral	₹97.70B	22.09	―	2.00%	12.39%	59.77%
MASTEK	65 Neutral	₹62.45B	17.23	―	1.62%	11.91%	-1.02%
ZENSARTECH	62 Neutral	₹162.04B	23.16	―	1.75%	9.16%	7.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Zensar Technologies Limited Corporate Events

Zensar Technologies Boosts Employee Engagement with Equity Share Allotment

Zensar Technologies Limited announced that its Nomination and Remuneration Committee approved the allotment of 29,896 fully paid equity shares to employees as part of the exercise of Employee Stock Options (ESOPs). This move increases the company’s issued and subscribed share capital, reflecting its commitment to employee engagement and retention, potentially strengthening its market position.

Zensar Technologies Releases Unaudited Financial Results for Q2 2025

Zensar Technologies Limited has announced the publication of its unaudited financial results for the quarter and half year ending September 30, 2025. These results have been published in the Financial Express and Loksatta newspapers and are available on the company’s website. This announcement reflects Zensar’s commitment to transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

Zensar Technologies Schedules Earnings Call for Q2FY26 Results

Zensar Technologies Limited has announced an earnings call scheduled for October 31, 2025, to discuss its unaudited financial results for the second quarter of fiscal year 2026. The call will be conducted virtually and will feature key executives, including the CEO and CFO, who will provide insights into the company’s financial performance and strategic direction. This announcement is significant for stakeholders as it provides an opportunity to gain a deeper understanding of Zensar’s market positioning and future prospects.