Synopsis: Defence stock falls over 10 percent after reporting weak Q1 FY27 results, with revenue down 10 percent YoY and net profit falling nearly 28 percent, despite a healthy order book.
The share of this company, which designs, develops, and manufactures combat training solutions and Counter-drone solutions for defense and security forces, came under pressure after posting weak Q1 numbers
With a market capitalization of Rs 14,316 crore, Zen Technologies Ltd’s stock on Monday made a day low of Rs 1,585.55 per share, down by 10.39 percent from its previous day’s close price of Rs 1,769.50 per share. The share of the company gave a negative return of 1 percent over the year.
QoQ Performance
Revenue decreased by 20.46 percent to Rs 141.64 crore in Q1 FY27 from Rs 178.08 crore in Q4 FY26, and EBITDA declined by 21.45 percent to Rs 57.88 crore in Q1 FY27 from Rs 73.69 crore in Q4 FY26, with the EBITDA margin contracting slightly to 40.9 percent from 41.4 percent. However, Profit After Tax grew by 9.29 percent QoQ to Rs 34.46 crore in Q1 FY27 from Rs 31.53 crore in Q4 FY26.
YoY Performance
Revenue decreased by 10.48 percent YoY to Rs 141.64 crore in Q1 FY27 from Rs 158.22 crore in Q1 FY26, and EBITDA declined by 33.08 percent YoY to Rs 57.88 crore in Q1 FY27 from Rs 86.49 crore in Q1 FY26, with the EBITDA margin contracting to 40.9 percent from 54.7 percent. This was accompanied by a Profit After Tax decline of 27.83 percent YoY to Rs 34.46 crore in Q1 FY27 from Rs 47.75 crore in Q1 FY26.
Order Book break-up
The company’s consolidated order book stood at Rs 1,239.02 crore as of 30 June 2026, compared to Rs 1,336.04 crore at the end of March 2026. During Q1 FY27, it secured new orders worth Rs 44.62 crore while executing projects worth Rs 141.64 crore.
Out of the total order book, the Equipment segment contributed Rs 920.59 crore, while the AMC segment accounted for Rs 318.43 crore. The order book provides revenue visibility for the coming quarters as the company continues to execute existing projects and add new orders.
Factors that might be leading the sentiment of investors after Q1
Early stage of order execution
The company said Q1 FY27 revenue was impacted because most of its current orders were secured from October 2025 onwards. These projects typically take around 12 months to execute, with a larger portion of revenue expected to be recognised in Q2 and Q3 FY27.
Lower sales during the quarter
Revenue from operations declined to Rs 141.64 crore in Q1 FY27 from Rs 158.22 crore in Q1 FY26. The lower execution of projects during the quarter reduced overall sales, which also affected the company’s earnings compared to the previous year.
Higher costs impacted margins
The company’s EBITDA margin fell to 40.9 percent in Q1 FY27 from 54.7 percent a year ago. At the same time, operating expenses increased to Rs 102.91 crore from Rs 93.51 crore, putting pressure on profitability despite ongoing project execution.
Other income declined while depreciation increased
Profit was also affected by higher depreciation and lower other income during the quarter. Depreciation rose to Rs 7.86 crore from Rs 6.34 crore, while other income declined to Rs 19.16 crore from Rs 21.79 crore, weighing on net profit.
About the Company
Zen Technologies Limited was incorporated in 1996. The company designs develop and manufactures 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.
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