Zensar Technologies Ltd (NSE: ZENSARTECH) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Manish Tandon — Chief Executive Officer and Managing Director
Pulkit Bhandari — Chief Financial Officer
Vijayasimha Alilughatta — Chief Operating Officer
Analysts:
Amit Chandra — Analyst
Nitin Padmanabhan — Analyst
Sandeep Shah — Analyst
Debashish Mazumdar — Analyst
Nikhil Choudhary — Analyst
Presentation:
operator
Ladies and gentlemen, good morning and welcome to the Zenzar Technologies Q3FY26 earnings conference call hosted by HDFC Securities Limited. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Amit Chandra from HDAC securities for opening remarks. Thank you. And over to you, Amit.
Amit Chandra — Analyst
Yeah, thank you, operator. Good morning everyone. On behalf of HDFC Securities, I welcome you all to the Jensa Technologies Quarter 3 FY26 earnings call. We have with us Mr. Manish Tandon, CEO and Managing Director, Mr. Pulkit Bhandari, Chief Financial Officer and other members from the senior management team. Before I hand over the call to Manish, I would like to highlight that the safe harbor statement of the second slide of the earning presentation is assumed to be read and understood. Thank you. And over to you, Manish.
Manish Tandon — Chief Executive Officer and Managing Director
Thank you, Amit. Hello. Good morning, afternoon. Good evening everyone. And first of all, wish all of you a very, very happy 2026. And thank you for taking time to join us today to discuss Zensar’s financial results for the third quarter of FY26. With me on this call are the usual suspects. We have Pulkit Bandari, our cfo, Vijay Sema, our coo, and Vivek Sanjan, our chro, one of the best operating teams in the industry, is on the call with you. Zenta delivered a modest yet resilient revenue performance this quarter. This was supported by healthy volume growth and I want to emphasize that and also emphasize that this was predominantly driven from offshore.
While the resulting mix shift coupled with typical seasonality and furlough related softness moderated our revenue growth momentum, our disciplined execution ensured continued operating strength. Notably our profitability metrics, order book and cash position all reached their strongest levels in recent quarters, underscoring the discipline of our execution and the robustness of our financial foundation. We begin 2026 with a singular commitment lead as a truly AI native technology services company, redefining the value we deliver, guided by a strong execution framework. Nearly 60% of our workforce is AI certified and 20% of this year’s order book is AI influenced, demonstrating the tangible value we deliver through our strategic investments across the entire AI stack from experience to engineering to engagement moving towards our financial performance, the company posted revenue of 160.5 million a year over year growth of 2.2% in reported currency and 1.3% in constant currency.
In INR terms this equates to year over year growth of 7.9% and sequential QoQ growth of 0.7%. On a year over year reported currency basis, revenue grew by 12.2% in banking and financial services, 5.2% in healthcare and life sciences while in Manufacturing, consumer services and also in TMT, vertical revenue declined by 2.7% and 11.6% respectively. We are pleased to inform that after absorbing the impact of furloughs, our gross Profit improved to 33.7% sequential growth of 270 basis points, our EBITDA improved to 17.4%, sequential growth of 200 basis points, net cash and cash equivalent positions improved to 322.4 million, sequential growth of 29.4 million and order book improved to 180.2 million sequential growth of 13.6%.
This coupled with industry leading 9.5% attrition demonstrates our commitment to disciplined execution and our enriching culture that foster long term relationships while continuing to execute our strategic priorities. With that, I will now invite Pulkit, our Chief Financial Officer to provide an update on critical financial data. Over to you Pulkit.
Pulkit Bhandari — Chief Financial Officer
Thank you Manish. Good day everyone and wish you a very happy New Year. Thank you all for joining this call. I will take you through some of the key business and financial metrics for the quarter ending December 25th. IT industry has been navigating a pivotal transformation driven by accelerated adoption of AI. Due to economic uncertainty, enterprises are prioritizing cost optimization and vendor consolidation over discretionary spend that leverages AI. Client conversations have shifted decisively towards building AI ready data foundations and outcome based data analytics. We remain committed to delivering enterprise grade solutions that align with client expectations and enable measurable business outcomes.
The reported revenue for the third quarter of financial year 26 stood at 160.5 million in USD terms reflecting a growth of 2.2% YoY and a degrowth of 1.4% sequentially in reported terms. In constant currency terms, YOY revenue grew by 1.3% and sequentially it degrew by 1.3%. Our EBITDA this quarter expanded by 200 basis points sequentially driven by positive forex impact of 0.7% improved offshore offshore effort mix by 1.4% leave utilization benefit of 1% other operational efficiencies of 0.7%. This was offset partially by impact of furloughs to an extent of 1% ESOP and this is a full quarter of ESOP cost coming in of 0.9%.
While we have expanded our margins, we continue to invest in augmenting capabilities specifically around AI and sales. We maintain our mid teen margin guidance. Our pact for the quarter stood at 13.9%. This includes an impact of INR 25 crores on account of new labor code changes. We continue to monitor and assess the clarifications as we go into this new law changes. Some other key highlights Our order book for the quarter stood at 180.2 million. Our book to bill ratio for the quarter is 1.12. Cash including investments stood at $322.4 million with an impressive DSO of 71 days.
Our attrition improved to 9.5%. Diluted EPS grew to 8.7 per share which is 9.4% growth quarter on quarter. The board has agreed to pay an interim dividend of 2.4 rupees per share this quarter. With that, I will now invite Vijay, our Chief Operating Officer to comment further on Q3FY26 results.
Vijayasimha Alilughatta — Chief Operating Officer
Thank you Manish and Pulkit. Greetings everyone. I will now share details about our operational efficacy, service line performance and AI journey. Our utilization for the quarter stood at 83.5% which grew by 60 basis points. YOY and decline of 130 basis points. Qoq Due to the seasonal furloughs, the rigor associated with accelerated fulfillment and capability enrichment continued. We had a gross addition of 988 employees in the quarter. Our voluntary attrition was 9.5%. This is the fourth successive quarter where our voluntary attrition has been below 10%. The offerings from our service lines and industry services group continue to resonate well with our clients.
The share of revenue from our service lines increased to 69% in Q3 which is 220 basis points higher YOY on a YOY reported currency basis. Cloud infrastructure and security services grew by 10.9%. Data engineering and analytics grew by 13.1%. Products and platforms including CMO services grew by 3%. Enterprise application services had a degrowth of 3.6%. The AI talent transformation initiative has seen significant growth in Q3. Our transformative Ignite AI Academy has impacted 7,300 plus unique employees and with over 10,000 course completions in AI, generative AI and agentic AI, this demonstrates our unwavering commitment to developing future ready talent at scale.
Industry recognized certifications have also seen a strong uptake, thereby strengthening our technical credibility in the AI domain. The AI for Leaders programs has gained significant traction driving innovation and leadership in AI adoption. We continue to deliver significant value to our clients in key AI engagements. A couple of examples of value delivered to clients are as follows. We have established a physical AI lab for a Fortune 15 client which is focused on large scale physical simulation and world model development. The lab enables multi agent simulation, synthetic data generation and closed loop training to build high fidelity world models that reflect real world dynamics.
Leveraging Zen CI, our agent AI platform, we delivered an end to end modernization assessment programs for a prominent financial services client for its retail credit processing platform, the engagement reverse engineered 300 plus complex mainframe programs and interfaces and established an execution ready roadmap achieving up to 60% faster documentation, 50% faster rule extraction and materially lower scoping risk. With that we can now open the line for questions.
Questions and Answers:
operator
Thank you ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Nitin Padmapan from Investec. Please go ahead.
Nitin Padmanabhan
Hi, good morning. Wishing you all a very happy new Year and congrats on the solid execution on margins despite the weakness. Had a couple of questions. The first is I think last quarter Manish, you had mentioned an all time high deal pipeline. Just wanted your thoughts on the conversion there. And second, when do you think we start seeing consistent predictable growth? Where do you see the pain points lie today? And finally I think what you mentioned on the AI side saying 20% of the order book is AI influenced. When we look at peers, people indicate. Reasonably higher numbers there. So just wanted your thoughts there as well. Is it that they’re sort of lagging there or is it just a matter of classification?
Manish Tandon
Yeah. So first of all let me ask answer the third question first. When we say 25% of our order book is AI influenced, we believe that. We believe in tracking that only EN and NN can be order can be AI influenced. We do not believe that renewals can be AI influenced. And if you take that number, then this 20% actually goes up to a very high number overall. Okay, so I think that is where most likely the disconnect is. And Nitin, I don’t want this to treat AI like people used to treat digital, but suddenly 100% of their revenues became digital overnight.
So I don’t want to do that. So we are very disciplined in the way we report AI influenced order book. The second question on areas of softness, areas of softness remains tmt. Other sectors, you know, there are pluses and minuses here and there. The area of weakness remains tmt. And while I point out to the area of weakness, I would say the area of strength remains financial services and insurance. Okay, so and third is you set a strong pipeline. So I just want to point out that while you guys are focusing too much on revenues, look at the volume growth also ultimately the volume growth.
What has happened this quarter also besides the furlough is that we have changed the. There has been a change in the on site mix and we have done more work offshore and that is also reflected in the margin improvements that we have shown. So also I think next quarter if this volume growth is, I think it is sustainable. If the volume growth is sustainable with the higher number of working days that we see, we should start seeing a reflection in revenue numbers. Also. I also want to point out that while revenue growth is very exciting for everyone, I am a bit old school.
I still focus on the bottom line and we have grown year over year in dollar terms. We have shown 18.2% growth in bottom line and in rupee terms 24%, 24.1% growth in rupee terms. So as I said, I’m a bit old school. I will not go in for revenues that don’t lead to profitability and margins. And as I have said before also I am ultimately we as a management team solve for shareholder value. And shareholder value is a combination of revenue growth and EBITDA percentage. And that is what we will continue to solve as we go forward.
Nitin Padmanabhan
That’s helpful and I agree with that. The only question is that I think at some point growth will also become important, right? I think when we our thought process was that we will be in line with peers and higher than peers over a period of time from a growth perspective. And so I was just asking from that angle, the profitability. I completely agree. Profitability has been extremely strong. But obviously growth ultimately feeds everything. So just wanted your thought there on achieving higher than peer growth over time. Yeah.
Manish Tandon
Nitin, Nitin, I absolutely agree with you. But when you know as a management team, when you know that this is a seasonally weak quarter, right. And this is a seasonally weak quarter for everyone, the best way of generating shareholder value in a quarter like this is to try and improve the bottom line because top line is difficult or you can achieve certain, only certain levels of this. We are not saying that we are focused exclusively on bottom line. We are actually very, very, very focused on top line growth also. And God willing we will start seeing the results soon.
But as I said in the interim, as I said in the interim, I would just say when one says growth, one can look at profit growth or one can look at revenue growth. I would rather look at profit growth than revenue growth. And on that front I think we have delivered stupendously 18.2% year over year growth in dollar terms. I would challenge others to see if anyone has delivered this kind of growth in profits.
Nitin Padmanabhan
Sure, Perfect. Understood. Thank you so much and all the very best.
Manish Tandon
Thank you. Thank you. Nitin.
operator
We take the next question from the line of Amit Chandra from HDSE Securities Ltd. Please go ahead.
Amit Chandra
Yeah, thanks for the opportunity and congratulations on a very strong like margin expansion. So you mentioned about that we saw the volume growth in this quarter. So if you can quantify what was the volume growth just to give a context. And also you mentioned that the express area is like TMD which obviously has been there over the last 1112 quarters now and it has been. The YUI growth has been negative over the last 11 quarters. So how do we see the stress there in the tmt? Whether it’s an ongoing stress and we don’t have a visibility there or we can assume that there is some light at the end of the tunnel and we can see some recovery there in terms of the tmt.
Because earlier also you mentioned that X of the top client or the TMT last year also our growth was pretty healthy. So if you can throw some more color in terms of how the growth is X of the stress in the large account. So I would say see we have been. Amit, my challenge now to myself and the team is that can we deliver double digit growth despite TMT not delivering? That is the challenge that we have taken up as a team. And there is no point in, you know, today in the board meeting also I said the same thing. There is no point in you know, saying tmt, tmt, tmt. I mean let’s get beyond it now. And now the proportion of TMT to The overall mix has come down from the past. So that is what we want to look forward and look ahead.
Not on the basis of and still deliver, try and deliver growth despite whatever happens in tmt. As to tmt, I mean my commentary has been consistent that we are seeing a lot of spend moving away from services to AI capital, capital investment towards AI, particularly in buying hardware, hardware, etc. So I am not looking at TMT improving significantly. Frankly, if TMT can stay flat for us, that will be good for us. As to the volume growth, Vijay or Vijay, maybe you can comment on it. Or Pulkit, you can comment on it. The exact numbers.
Vijayasimha Alilughatta
Yeah.So we had a volume growth of 3.1% at offshore and overall of 1.7%. That translated to 1.7%. There was a decline at onsite because of movement from on site to offshore.
Amit Chandra
Okay. And now coming on to the strong areas, which is bhsi. And also we have seen some recovery in the mcs. So if you can throw some light in terms of specifically bfsi, what’s happening there in terms of clients, because BFSI has been a strong area where most of the peers and where the growth is coming for the sector. And obviously we are also seeing some strong growth there. But if you can split it between what’s happening between us and Africa, because we have a strong presence in BFSI in Africa also. So if you can give us some insights there.
And also on the manufacturing, are we seeing some reversals in terms of the priorities, in terms of clients and. Can we confidently say that the worst is behind for manufacturing?
Manish Tandon
Okay, so on vfsi we are seeing decent amount of growth, secular growth, be it in Europe, be it in Africa, be it in US and particularly in the us we are seeing reasonable growth. So that is your first question on manufacturing. As I have said before, our exposure to manufacturing is fairly limited and hence we don’t get impacted too much by manufacturing when we call what we call as manufacturing and consumer services, primarily retail. And there this quarter is the seasonal sort of quarter. So there are, as you know, retail spending, retail, 40% of sales happen in this quarter.
So most retailers ramp up. But we are seeing good amount of some amount of green shoots. I would not say a good amount of green shoots, but some amount of green shoots in this sector. Life sciences, although you have not asked, There we are seeing healthcare and life sciences. There we are seeing continued headwinds and primarily because in one or two, one or two accounts we have been at the wrong end of a consolidation.
Amit Chandra
Okay, answer on like lastly on the margin front, obviously we have seen healthy growth. So is there any like one off component in terms of the margin expansion that we have seen? And obviously we are at the higher end of the guidance in terms of the mid teens. So are we planning to invest some of these gains back into fueling the growth? And also in terms of cash position, we have very healthy cash which is 18, 19% of market cap right now. So how do you plan to give it back to shareholders? And in terms of acquisitions, what our plans?
Manish Tandon
So there are lots of questions Amit. So let Pulkit answer all the financial questions. I think between Pulkit and Vijay, the two people who are most responsible for delivering this, I think they should answer Pulkit over to you.
Pulkit Bhandari
Sure. So Amit, I think the way we look at basically margin is that part of it is structural improvement, part of it is basically specific to this quarter. So when you look at the overall expansion, there is a improved offshore effort mix which is roughly around 1.4% and that’s the structural shift and I would say slightly more long term than anything else which is going to stay. Impacts like the benefits like leave utilization, some part of other operational efficiencies may actually go away next quarter. Yeah. At the same time our endeavor is to answer your first part.
We want to invest continuously in AI and sales and to that extent, basically some of the expansion will go back and get, get flown back in the in these two areas. The long term guidance still stays at mid teens but at the same time some of these improvements should basically sustain and if not invested back, they’ll help us expand the margins. But the endeavor is to of course invest them back. That’s part one. Second, our cash position stays strong. Our DSOS as I called out is strong. Our collections every quarter have been improving overall. Do we look at capital allocation ideas? Absolutely, yes.
Do we evaluate M and A situations? Yes, very actively. But we are very mindful in terms of how they will be accretive not just to the revenue but also to the bottom line. So our decision making is centered around the ability of any idea which can help us again in the mid term to long term. They’re not short term solutions. So that’s how we look at cash from you said distribution back to the shareholders. This quarter again, we basically like last year, same time we had an interim dividend that we announced. This time it is 120%.
Last year it was roughly around 100% of the face value. So we are improving in terms of our distribution Ratios and we would, we would kind of do that. Balancing act between distribution and of course keeping cash for growth.
Amit Chandra
Okay, so thank you and all the best for the coming quarters.
operator
Thank you. We take the next question from the line of Sandeep Shah from Aquarius Securities. Please go ahead.
Sandeep Shah
Hi. Thanks. Thanks for the opportunity and congrats on a strong execution on margin in a difficult quarter. So the first question is when you joined at that point in time itself, you were knowing that PMT could be a pain portfolio, especially because of a large account, client specific issues. So any view why we were not able to compensate that by acting proactively in some of the other verticals? Is it more to do with the portfolio mix outside BFSI and TMT which is hurdling us in terms of a proactive aggression? Is it more to do with macro or is it more to do with our sales aggression where we are not able to act proactively in terms of adding more deals, more pipeline, converting more pipeline into dealings and into revenue to compensate tmt.
Because now as a percentage to sales, if I am not wrong, would have come down from high teens to closure to high single digit. So any view on this and any change of gears in terms of acting aggressively on proactive basis.
Manish Tandon
So Sandeep, you are assuming that the platform that I inherited, I means we, the management team inherited, was a stable managed services platform. That assumption is wrong. What we inherited was, what we inherited was really a slightly more advanced form of staff augmentation company, to be very frank. So we were grappling with multiple problems. And as I had said before this, if we didn’t fix the margin issue first, then there will be no investment available to invest in the business, to transform the business. And that is why we took the important problems first. We positioned the company in a fashion that it can take advantage now of the new trends and the new things that are happening.
And I am very pleased to say that we are now in a position to really be it M and A, be it, you know, investing in AI, be it launching new verticals. We have created the framework and the scaffolding in the organization to be able to do all those things. TMT is also now less than 10% of about 10% of our revenue if I’m not mistaken. So. Its impact is going to be less going forward. That’s the other thing. And you know, almost all the sectors were struggling when we joined. So please do not forget that the run rate of the company was less than when I took over, was 140 million a quarter if I’m not mistaken. So from there we have come a long way and I feel very confident that now the company is really positioned to take advantage of the opportunities that the environment is presenting.
Sandeep Shah
Fair enough. Great reply to the question. And sir, just in terms of further to what Nitin has asked and you have replied, you said we generally prioritize on a profitable business. So that’s a good strategy because what investor wants is a EPS growth as well. But in that scenario, why we are not increasing our EBITDA margin goal post? Because at one end if we are saying we want to become profitable, at the other end we are saying we are investing, but that is not yielding growth turnaround yet. So why not increase the margin goal post where currently the margin is much higher than the goal post.
Manish Tandon
So Sandeep, again, see I outlined this philosophy very early in my tenure that I am trying to maximize shareholder value. And for me, maximizing or maximizing shareholder value in some cases may mean lower revenue but higher margin. But in most cases it means higher revenues and lower margin. Okay, so at this stage, as I was mentioning to Nitin, when you go into a quarter and you realize that this is going to be a soft quarter for everyone, what can you do to maximize shareholder value? You can only shore up and execute much better execute to higher margin.
And that’s what we have done. If this quarter I get a large deal, for example, which is not margin accretive in the first year, it gives me that cushion to take up that last deal. Even though it might not be accretive in the first year, the margin accretive in the first year. So this is while we can view it from a quarter to quarter length, we can. But as a leader I think and as a management team, we are playing the long game. We are fixing the company structurally and we are positioning it for much better things to come.
When I joined, one of the things, I told the team that the best is yet to come. And I am very confident even today that the best is still to come.
Sandeep Shah
Okay.
Manish Tandon
And we have traversed that journey.
Sandeep Shah
Yeah, yeah, fair enough. Sir, just last two question. In terms of offshoring, if business has grown on the offshore volume side, why on a Q on Q the offshore revenue mix is just improved by 20, 30 days. And second, is it fair to assume fourth quarter there could be a material growth bounce back as we recoup the furloughs and the worst in the TNT may be behind in the fourth quarter where it may not leak, but it may not grow and remain stable.
Manish Tandon
So hope is eternal. Hope runs eternal is all I can say. Ultimately volume growth will translate into revenue growth. In fact if there is no volume growth and there is revenue growth then we as a management team get worried. So this is very encouraging as to you know why the proportion etc. I mean see there are so many factors Sandeep dollar depreciation, dollar appreciation, some this thing that has an impact then the number of, I mean two people going off from on site will have an impact equivalent packed on offshore of say five people being added or something like that.
So those ratios are also there. So it’s a very from a revenue perspective it’s a very fine calculation especially with a appreciating currency. But you know being an industry veteran we can tell you that ultimately offshore leads to higher margin, higher offshore volume growth leads to higher margin and that is what we are focused on.
Sandeep Shah
Okay. Okay sir, just a clarity fourth quarter one can expect growth to turn around.
Manish Tandon
We don’t give Sandeep, we don’t give guidance as you know but Hope runs eternal.
Sandeep Shah
Okay, thank you. I will come in the follow up if I have more. Thanks and all the best.
operator
Thank you. We take the next question from the line of Debashees Majumdar from small investments. Please go ahead.
Debashish Mazumdar
Yeah hope I’m audible.
operator
Yes, yes please go ahead.
Debashish Mazumdar
Thanks for the opportunity. I had a few sets of few questions so my first question was around TMT vertical. Sir, I know last time also you had alluded to that the clients have started to spend more on capex on hardware instead of on the services but this time or as a whole how are you seeing this? Has it come to a surprise to us in the extent of the impact on our revenue stream on this? Has it come to you as a surprise or giver sorts of prepared for it and should we assume second part to it is should we assume that it has bottomed out or there is some more recalibration which is left here.
Manish Tandon
No, I wouldn’t say that it has bottomed out or recalibration. I won’t take a guess on that but if I have to guess then I would guess on the downside then on the upside. Okay so. So I would say and frankly as I commented to Nitin and to Amit I have myself and I have asked the team to look beyond tmt. I mean now it’s a smaller percentage of our revenue and I have said that TMT is no longer going to be and a clutch that they can fall on. As we move forward I can tell you that overall the headwind in the TMP sector remain.
I don’t think that the spending that these large companies are doing on Capex and so on is going away and a lot of insourcing is also happening in these sectors and wherever people are able to retain businesses they are giving hefty discounts of the order of 30%.
Debashish Mazumdar
Thanks. Thanks. So just to follow up on this one is the headwind we are facing in TMT is a broad all across clients or is there a few? Let’s assume 1, 2. I’m not even alluding to the top one. Let’s Is it a few set of clients client specific issue or is it a broader theme you are seeing across?
Manish Tandon
See we don’t have too many TMT clients to be honest with you. So at least in our portfolio we are seeing it as a broader issue. But as I said we don’t have, you know it is not that we have 100 TMT clients.
Debashish Mazumdar
Fair enough. Got it. That is it answers it. Well sir, my second question was around the I just wanted to understand the the cost item of employee cost and wanted to relate it with the decline or a flattish offshore revenue. Could you help me understand? Help me tie these up because there is in a sharp decline in employee cost during this quarter. So how should I understand this and have is it a fair assumption that a few contracts or ramp ups have been delayed or we have reached to a phase where newer ramp ups are taking time? How should we understand this?
Manish Tandon
No, as I explained to Sandeep just before this see time of when the currency is stable then you will see direct correlations. When the currency is depreciating so much then you will not see direct correlations. Okay, but everyone in the industry knows that offshore is more lucrative than on site. So when you look at total revenues that has been there is an interplay of currency and the utilization and volume there. So as to sharp decrease in the cost, I mean all credit goes to Vijay particularly and Sulkit as to and Vivek also as to how they have been able to manage some of it I can tell you it is because of leave provisioning because this is the quarter where a lot of people take a lot of leaves and furloughs happen.
So some of it. And Pulkit has also mentioned that there is a 0.7% benefit the correct Pulkit based on leads that we have got.
Pulkit Bhandari
Yeah so just to basically add to what Manish said one is basically higher leave utilization which is roughly around 1% on overall basis. Part of it would have gone into gross margin, part of it would have come to SGNA. The on site headcount reduction is roughly around 52 in the current quarter. Last quarter as well on site headcount reduction came down by around 90 which was towards the end of the quarter. So the full quarter impact of that benefit is coming in in Q3.
Debashish Mazumdar
Got it, got it. That explains sir on specifically my third question was around the deal wins. So could you give some flavor as to what parts, what forms of existing new or a net new part onto it? And the second part was to it was are we comfortable with the current run rate of deal wins and how should we understand that or what steps are we taking to just to improve this or to give it a larger number? Because we have had a higher number in the past also.
Manish Tandon
Yeah. So as we have been maintaining we are fairly comfortable as long as we number the order bookings are somewhere between 0.9 to 1.2 times quarterly revenues. We are very comfortable with that. This time it was 1.12 our book to bid. So. That answers I think some question. First part of the question, the second part of the question is before order booking you have pipelines. We don’t disclose our pipeline but I can tell you that the pipeline is fairly strong that we see how much we’ll be able to convert and in what time frame that will that we have to accelerate and we continue to focus on doing that.
Debashish Mazumdar
Sir, a part two question was the renewals and the the new part of the.
Manish Tandon
Yeah, yeah. So if you look at out of the pulkit do we disclose enmity?
Pulkit Bhandari
No, we don’t. Yeah.
Debashish Mazumdar
So a certain flavor to it just I I know, I understand that you don’t give the exact numbers but just a flavor to it as in a year back how it was or has the proportion changed or how. How are we seeing that?
Manish Tandon
I I would say it is 8 usually is about 25 to 27. Somewhere between 20 to 30% is what en and mn normally is. Sometimes if you have a large deal or something it’s slightly higher but usually it is in this range.
Debashish Mazumdar
And no major shift in terms of year backs and today’s order book it has predominantly been in the similar range. You’re saying?
Manish Tandon
No, no. E&NN order book has been in the similar range. But our order book average order book is last four quarters. The average order book was somewhere around 185 or something if I’m not mistaken. And this quarter also it is in the Same range. I am looking at the order book numbers. The last quarter it was 158.7. Before that it was 172. And this quarter it is 180.2.
operator
Thank you. We take the next question from the line of Nikhil Chaudhary from Nuvama Institutional Liquidies. Please go ahead.
Nikhil Choudhary
Good morning everyone. Thanks for the opportunity. My first question is on offshoring. We have recently improved offshoring by more than 400 basis point in the last one year. Where we are in this journey. Journey. And do you intend to increase offshoring further and if there is any target?
Manish Tandon
No, there is two.
operator
Ladies and gentlemen, we have lost the line of. Manish sir, please stay connected while I rejoin Manisha. Thank you. Thank you for your patience. Ladies and gentlemen. Nichols, if you could please repeat your question.
Nikhil Choudhary
Thank you. Just wanted to understand what’s your view on offshoring? We have already increased it by 400. Basis point from last year. Any target you have of let’s say. Reaching a 60% overall revenue, any timeline. Thank you.
Vijayasimha Alilughatta
Hello. Hi. This. Yeah. If you want to go. You want me to take.
Pulkit Bhandari
Vijay, you can take that. Yeah.
Vijayasimha Alilughatta
Yeah. So look, we don’t have a specific target in terms of increasing the offshore ratio. This is based on the type of work that we are getting. And with AI, the advent of AI, we are able to do a lot of these stuff at offshore. And that has been the reason why it is actually progressing. But to your specific question, we don’t have a target saying this is the offshore percent. I think we are in a range range bound stuff. And this is the right range when it comes to offshoring.
Nikhil Choudhary
Got it. Thank you. Second one on growth without building 1.3% growth which is lower than the industry growth compared to our guidance of moving up in growth quadrant from bottom quadrant. To top quadrant in next three years. Do you think is it possible for us to let’s say deliver even mid single digit to high single digit growth next year? Especially in the backdrop of our nine month wheel win has declined by high single digit. And most of the vertical outside of BFSI is actually facing headwind. So how. What’s the timeline or journey or plan to reach the double digit growth and can we at least deliver let’s say mid to high single digit growth in FY27? So some color there. Thank you.
Manish Tandon
Growth and growth. You want revenue growth or you want profit growth?
Nikhil Choudhary
Revenue What?
Manish Tandon
And profit? If it doesn’t grow, that’s fine.
Nikhil Choudhary
No sir, profit growth is obviously very surprising. And encouraging. So just want to.
Manish Tandon
Our profit growth in dollar terms is 18.1% year over year. I challenge you to find any large scale players who have delivered 18.1% profit growth year over year.
Nikhil Choudhary
Without doubt, sir, but any color in terms of revenue growth perspective, just from our own modeling, how should we think about
Manish Tandon
Revenue growth? Maybe I can also buy revenue. So I mean guys, look at the overall picture. Ultimately my job is to deliver. Our job is to deliver shareholder value. Shareholder value comes from. As I am old school. I know. But shareholder value comes from profit growth. EPF growth. Our EPF growth is 24.1% year over year. Our profit growth is 18.1% year over year in dollar terms.
Nikhil Choudhary
Got it, Manish. So if. Let me think of this. Let me think of this way. Can we still deliver double digit profit growth we had. That will be the target of the management.
Manish Tandon
Yes, we want to. Yes, yes, we will deliver. We want to deliver double digit profit growth and we are committed to doing that.
Nikhil Choudhary
Great. Thanks a lot.
operator
Thank you. We take the next question from the line of Sandeep Shah from Aquarius Securities. Please go ahead.
Sandeep Shah
Yeah, thanks for the follow up opportunity. Manisha, you said in the Healthcare Life Sciences couple of accounts where we were on the wrong side of vendor consolidation. So what exactly that has happened? And you believe, believe the impact of this may start from 4Q and maybe a headwind for the growth in 4Q 1Q or already in the numbers in 3Q.
Manish Tandon
No, no, I mean see there will be some impact in Q4. But I mean this is not, this is not like it was a hundred million dollar account or anything. So you know, it’s a. It’s, you know, we were doing some project which got consolidated. We got consolidated out. It was not that in an account we got consolidated out. But you know, Healthcare Life Sciences is. Overall size of the revenue size of the vertical is only 60. 70 million. 70 million or so. Then even our 2, 3 million thing consolidation has an impact. Correct. So that is.
That is the only thing. Nothing for you to be nothing. I mean overall at the company level, nothing to worry about.
Sandeep Shah
Okay. Okay, fair enough. And sir, based on the commentary, it looks like 70% of the portfolio both on BFSI and NCS has been doing well and are confident. But will it be enough for you to drive the growth or do you believe we may have to add organically and inorganically new portfolios which will help us for a long term growth aspirations.
Manish Tandon
So we are actively looking for the inorganic opportunities, frankly. And. But again, you know, cash that we hold belongs to the shareholders. And we want to use it very judiciously, not just to go and arbitrarily buy revenues. We are not interested in buying revenues. We are interested in doing strategic acquisitions that can lead to long term shareholder value. So we are cautious, but we are aggressively looking at opportunities.
Nikhil Choudhary
Okay, thanks. Fair enough. All the best. Thank you.
operator
Thank you ladies and gentlemen. With that, we conclude the question and answer session. I now hand the conference over to Mr. Manish Tandon for his closing comments.
Manish Tandon
Thank you. Thank you everyone. It’s pretty late actually. Interestingly, I got dropped off because my cell phone went into do not disturb mode. So before we conclude, those of you who are in the US and in India, I want to reiterate my gratitude for being on this call. Most of all, I want. I want to convey my gratitude to our clients for their continued trust, to all the Ansarians for their unwavering dedication, and to of course all of you for your confidence and support as we embark on this shareholder value creation journey. I think Q3 reflected the expected seasonal softness combined with the impact of change in volume flow mix.
Yet our year over year revenue growth, profit growth, significant market expansion, healthy order book and robust cash position all reinforce our confidence in the path ahead. As we move into the final stretch of FY26, our priorities remain clear, maintained, disciplined execution, deepen the value we deliver to clients and continue advancing our AI native. Thank you once again for taking the time to join the Entsar’s Q3 FY26 earnings call. And I look forward to interacting with some of you in the various analyst forums. Thank you.
operator
Thank you on behalf of HDSE Securities Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.