Zensar Technologies shares rally 16% to hit 52-week high after Q3 results; check details

Shares of Zensar Technologies rallied as much as 15.95% to hit the all-time high level of 869.70 apiece on the NSE, extending the gains for the second straight day. The rally in the stock was witnessed after the engineering and technology solutions company reported a double digital growth in revenue in Q3FY25.

However, the company's shares pared some of their early gains to trade 11.75% higher at ₹838.2 per piece on the NSE at 1:34 p.m.

The company reported a 10.1% year-on-year (YoY) increase in revenue from operations at ₹1,325.6 crore in the quarter ended December 31, 2024, compared to ₹1,204.1 crore in the same period a year ago.

However, the company’s profit after tax (PAT) dipped 1.2% on a YoY basis to ₹159.8 crore in the said quarter. In the corresponding quarter of the previous year, Zensar Technologies posted a net profit of ₹161.7 crore.

The IT company’s Earnings Before Interest and Taxes (EBIT) rose 3.9% YoY to ₹183.3 crore in the third quarter of the current financial year, from ₹176.4 crore in the corresponding period of the preceding fiscal.

On a quarter-on-quarter (QoQ) basis, its EBIT climbed 7% compared to ₹171.4 crore witnessed in the September 2024 quarter.

At the operating level, Zensar Technologies reported an EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) of ₹206.9 crore in Q3FY25, down marginally by 0.3% YoY compared to ₹207.6 crore in the year-ago period.

During the October to December period of the current financial year, Zensar Technologies’ gross margin stood at 30.1% of revenues, representing a 200-basis-point sequential QoQ improvement.

Commenting on Q3 results, Manish Tandon, CEO and Managing Director, Zensar, said, “Our growth in this quarter reflects the resilience of our business and the dedication of our team amidst a quarter that is traditionally challenging for the industry. Our strategic business approach and focus on execution and AI translate positively into the company’s overall performance.”