Zen Technologies Q1 profit falls by a third, order inflow narrows, but guidance maintained

Defence equipment manufacturer Zen Technologies Ltd. called the current financial year to be one of consolidation, but expressed confidence that it will meet its order inflow guidance for the first half of the current financial year, as well as achieving cumulative revenue worth ₹6,000 crore over the next three financial years.Zen Technologies reported results over the weekend, where its revenue declined by 38% from the year-ago quarter to ₹158.21 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 42% from last year to ₹64.69 crore.
EBITDA margin narrowed by 284 basis points, while net profit declined by 33% year-on-year to ₹53 crore.
On a sequential basis, most of the parameters are down over 50%, while margins narrowed by 156 basis points.Zen Technologies Chairman and Managing Director Ashok Atluri said that revenue growth moderated during the quarter but this is a temporary adjustment phase with a strong long-term growth trajectory.

The company bagged orders worth ₹64.26 crore during the June quarter, which is lower than the orders worth ₹168 crore that it won during the March quarter. This takes the overall consolidated order book to ₹754 crore.

“Looking ahead to H1FY26. we remain confident in achieving our order inflow guidance of ₹800 crore, out of which, we have secured orders worth ₹150 crore till date, with the remaining ₹650 crore expected to materialise within the first half,” the company said in its press statement, adding that it also expects orders to be placed under the government’s emergency procurement plan, particularly for anti-drone systems.

Shares of Zen Technologies ended in a 5% lower circuit last Friday at ₹1,773.2. The stock has declined 33% from its recent 52-week high of ₹2,627, and is down 11% during the last one month.