Mumbai: Shares of IT services company Zensar Technologies surged more than 14 per cent during Friday’s trading session, driven by strong buying interest, robust trading volumes and optimism surrounding the company’s artificial intelligence (AI)-led growth strategy ahead of the quarterly earnings season.
The stock climbed as much as 14.41 per cent to an intraday high of Rs 514 before trading at Rs 510.15 around 2 pm, significantly outperforming the broader market. During the same period, the Nifty50 index was up about 0.9 per cent at around 24,183.
Strong volumes support sharp rally
The rally was accompanied by heavy trading activity, indicating strong investor participation.
Around 276.23 lakh shares, valued at approximately Rs 1,360.93 crore, had changed hands on the National Stock Exchange (NSE) by the afternoon, reflecting increased institutional and retail interest in the stock.
Market participants said the sharp rise in volumes suggests renewed confidence in the company’s growth prospects ahead of its quarterly earnings announcement.
Analysts cite improving IT sector sentiment
Ravi Singh, Chief Research Officer at Master Capital Services, attributed the rally to improving sentiment in the information technology sector as investors position themselves ahead of the earnings season.
According to Singh, the surge in trading volumes points to fresh institutional buying, while the stock’s breakout above a key technical resistance level triggered additional buying interest and short covering.
He noted that the sustainability of the rally would depend on Zensar Technologies’ upcoming quarterly financial results and management’s outlook on business growth.
If the company reports healthy earnings and signals improving demand, the stock could continue to witness positive momentum in the coming sessions, he said.
AI-led business strategy boosts investor confidence
Harshal Dasani, Business Head at INVAsset PMS, said the rally was not merely the result of a broader recovery in IT stocks but was driven by company-specific developments.
He highlighted Zensar Technologies’ record order book of USD 912.7 million, with USD 332 million, or 36.4 per cent, coming from AI-native deals.
According to Dasani, the company has successfully repositioned itself as an AI-focused technology services provider through the launch of its ZenseAI platform.
He added that nearly 85 per cent of the company’s workforce is now AI-certified, strengthening its ability to execute AI-driven projects for global clients.
Large deal wins strengthen outlook
Dasani also pointed to the company’s USD 210 million framework agreement with a major financial services client as evidence that its AI strategy is translating into large-scale business opportunities.
He said the deal demonstrates that Zensar is winning strategic AI-led contracts rather than relying solely on cost-optimisation projects, which typically exert pressure on profit margins.
The sizeable order wins have reinforced investor confidence in the company’s long-term growth prospects amid rising global demand for AI-enabled digital transformation services.
Dividend announcement adds to positive sentiment
Apart from business performance, investors also responded positively to the company’s shareholder reward plans.
The board has recommended a final dividend of Rs 12.60 per share, taking the total dividend for FY26 to Rs 15 per share.
The company has fixed July 17 as the record date for determining eligible shareholders, while its 63rd Annual General Meeting (AGM) is scheduled for July 30.
The dividend announcement and upcoming corporate events have further supported investor sentiment.
Stock-specific rally amid cautious sector outlook
Analysts believe the sharp rise in Zensar Technologies reflects improving business fundamentals rather than a broad-based rally in IT stocks.
While the sector continues to face global demand uncertainties, the company’s growing AI-focused order pipeline, strong deal wins and shareholder-friendly initiatives have positioned it favourably among investors.
Market participants will now closely watch the company’s upcoming quarterly earnings and management commentary, which are expected to determine whether the current momentum can be sustained.