Motilal Oswal's research report on Zensar
Zensar (ZENT) reported 2QFY26 with flat revenue growth (est. a decline of 0.5% CC). BFS/HLS grew 4.8%/3.9% QoQ CC, while TMT declined 10.2% QoQ CC. Deal TCV: Bookings came in at USD159m (down 8% QoQ/21% YoY), and the book-to-bill was 1.0x. EBIT margin was 13.7% (est. 13.4%), up 20bp QoQ. PAT stood at INR1,821m (flat QoQ/up 17% YoY), above our estimate of INR1,739m. For 1HFY26, revenue/EBIT/PAT grew 8.1%/11.5%/16.1% YoY. For 2HFY26, we expect revenue/EBIT/PAT to grow 9.3%/8.9%/8.6% YoY. Our TP of INR730 is based on 21x Jun’27E EPS. Reiterate Neutral.
Outlook
We keep our estimates largely unchanged. We expect FY26/FY27 EBITDA margin estimates at 15.5%/15.6%, resulting in a PAT CAGR of 10% over FY25–27E. Our TP of INR730 is based on 21x Jun’27E EPS. Reiterate Neutral.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
