Zen Technologies Limited was incorporated in 1996. The company designs develop and manufacture combat training solutions and Counter-drone solutions for defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces, and paramilitary forces. Zen Technologies is headquartered in Hyderabad, India with offices in India, UAE, and the USA. Presenting below are its Q1 FY26 earnings.
Q1 FY26 Earnings Summary
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Consolidated Revenue from Operations: ₹158.2 crore, down 38% year-over-year (YoY) from ₹254 crore in Q1 FY25.
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Net Profit (PAT): ₹53 crore, down 33% YoY from ₹76.81 crore in Q1 FY25.
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EBITDA: ₹64.7 crore, down from ₹111.4 crore YoY; EBITDA margin at 40.9%, slightly below last year’s 43% but still robust.
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Net Profit Margin: 30% (identical to Q1 FY25 despite lower revenue).
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EPS: ₹5.29 (Q1 FY25: ~₹9.14).
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Order Book: ₹754 crore as of June 30, 2025.
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Cash & Liquidity: ₹918 crore, supporting future growth and flexibility.
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Reason for Moderation: The decline was due to deferrals in equipment shipments—management stated these are expected to convert in Q2 and the overall year inflows should meet guidance targets.
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Strategic Moves: Completed the acquisition of TISA Aerospace (76% stake) to expand into UAV and loitering munitions; strong synergy with prior acquisitions in naval/marine simulation and drone subsystems.
Key Management Commentary & Strategic Highlights
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Management emphasized the softness in Q1 was “a temporary adjustment,” with robust fundamentals and best-in-class margins maintained despite deferred revenue.
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Subsidiaries contributed meaningfully; integration is on track, supporting margin stability.
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The order inflow target for H1 FY26 is ₹800 crore—₹150 crore has been secured, with the remainder expected before September.
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Growth focus is on anti-drone, armored/weaponized unmanned platforms, marine/naval simulation, and leveraging cross-subsidiary synergies.
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Zen remains debt-free and is executing its strategic roadmap, targeting ₹6,000 crore cumulative revenue over the next three years, with a focus on indigenization and supporting government emergency procurements.
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Outlook: Management remains confident in delivering on FY26 guidance, with deferred Q1 revenue anticipated to be recognized in the next quarter.
Q4 FY25 Earnings Summary
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Revenue: ₹325 crore, up 130% YoY (Q4 FY24: ~₹138 crore).
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Net Profit (PAT): ₹114 crore, up around 189% YoY.
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EBITDA: ₹138 crore; EBITDA margin above 42% (vs 36% YoY).
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EPS: ~₹11.19 for FY25.
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Dividend: Recommended ₹2/share final dividend for FY25.
To view the company’s previous earnings, click here