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 Q2 FY26 earnings results.
Q2 FY26 Earnings Results
Revenue from Operations: ₹173.57 crore, down 28% YoY from ₹241 crore in Q2 FY25, but up 10% QoQ from ₹158.2 crore in Q1 FY26.
EBITDA: ₹90.05 crore, nearly flat YoY; EBITDA margin 51.9% (up sharply YoY, but down sequentially from 54.7% in Q1).
Profit Before Tax (PBT): ₹82.3 crore, nearly unchanged YoY, up 7.3% QoQ.
Profit After Tax (PAT): ₹62 crore, down 5.2% YoY, up 24.4% QoQ.
Earnings Per Share (EPS): ₹6.58.
Order Book: ₹675 crore as on Sep 30, 2025, including ₹190.5 crore from subsidiaries.
R&D Spend (H1 FY26): ₹13.87 crore.
Liquidity Position: ₹1,100 crore as of Sep 30, 2025.
No Dividend declared for Q2 FY26.
Management Commentary & Strategic Directions
Chairman & MD Ashok Atluri stated:
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“Our Q2 performance reflects continued operational strength and disciplined execution, even as revenue and profit were impacted by procedural delays in order finalisations. Fundamentals remain solid, buoyed by strong liquidity and increasing value addition from subsidiaries (ARIPL, UTS, Vector Technics, Bhairav Robotics, and TISA Aerospace).
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The company had lower turnover YoY, but margins were preserved: operational EBITDA margin exceeded 51%.
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Synergies from recent strategic acquisitions in marine simulation, defence robotics, and drone subsystems continue to scale positively.
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Zen Technologies’ solutions received real-world validation during Operation Sindoor, leading to increased domestic and export interest in anti-drone and loitering munitions systems.
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Emergency procurement measures by the government led to timing delays in regular RFP closure; management expects deferred orders to release soon, supporting revenue visibility.
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Focus remains on innovation, R&D expansion, and disciplined execution to unlock scale across the defence modernization program.”
Q1 FY26 Earnings Results
Revenue from Operations: ₹158.2 crore, down 38% YoY from ₹254 crore in Q1 FY25.
EBITDA: ₹64.7 crore, EBITDA margin 40.9%.
Profit After Tax (PAT): ₹53 crore, down 33% YoY.
EPS: ₹5.29.
Order Book: ₹754 crore as on Jun 30, 2025.
Cash & Liquidity: ₹918 crore.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.