Shares of Zensar Technologies Limited hit a day high of Rs 507.70 on 29 October after the IT firm posted 11.5% revenue growth in Q2.

Zensar told exchanges late on 28 October that revenue for the July to September quarter came in at Rs 1,585 crore, which is 11.5% higher than a year ago.

Profit after tax rose 4.4% to Rs 190 crore. It grew slower than sales. Spending on subcontractors climbed to Rs 277.7 crore from Rs 183.9 crore a year earlier.

The brighter number sits in operating profit. EBIT, which is what the business earns from its day-to-day work before interest and tax, rose to Rs 213 crore from Rs 192 crore in the June quarter.

The margin widened to 13.4% from 12.76%. Staff were busier too. Utilisation, the share of employee time spent on client work, rose to 87.6% from 85.1% in the previous quarter.

Banking and financial services clients did the heavy lifting.

That segment made up 50.3% of revenue against 43.6% a year ago, and its sales grew 17.1% after adjusting for currency moves.

Telecom, media and technology went the other way, with revenue down 21.6% year on year on the same basis.

Separately, the board approved a plan to fold M3BI India Private Limited, a wholly owned subsidiary, into Zensar from 1 April 2027, subject to regulatory approvals.

No new shares will be issued. The company had set 17 July as the record date for a dividend of Rs 12.60 per share.

By mid-August, Zensar had also completed filings to merge two US subsidiaries, M3BI LLC and Bridgeview Life Sciences LLC, into its American arm, Zensar Technologies Inc.

At 10:42 am, the stock was trading at Rs 498.80 on the NSE after opening at Rs 503.00, which puts it up Rs 1.80 or 0.36% from the previous close of Rs 497.00. The 52-week high is Rs 814.15, set on 31 October last year.

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