The defence company’s shares reached a 5 percent upper circuit limit following a 124 percent increase in net profit for Q1 FY25. Over the past three years, the shares have delivered a return exceeding 1531 percent.
Price Movement
In Monday’s trading session, Zen Technologies Ltd.’s share price opened at a 52-week high of Rs.1,607.85 per share and also hit a 5 percent upper price band from its previous close of Rs.1,531.3 apiece.
Reason for the rise
The significant rise in Zen Technologies Ltd.’s stock price was driven by the company’s strong quarterly performance for the period ending June 2024.
Revenue from operations of Zen Technologies soared remarkably by 92 percent year-on-year, reaching Rs.253.95 crore, up from Rs.132.44 crore in Q1 FY24. On a quarter-to-quarter basis, revenue climbed 87 percent from Rs.135.71 crore in Q4 FY24.
In the quarter ending June 2025, Profit After Tax (PAT) surged by 57.4 percent to Rs.74.17 crore, compared to Rs.47.13 crore in the same quarter of FY24. Additionally, net profit experienced a significant increase of 124 percent from Rs.33.03 crore in Q4 FY24.
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Financial Ratios
Zen Technologies Ltd. has shown a notable enhancement in its profit margins. Over the past year, Operational EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) grew by 56 percent, while Return on Capital Employed (ROCE) and Return on Equity (ROE) now stand at 41.43 percent and 28.51 percent, respectively.
Order Book
As of June 30, 2024, Zen Technologies Ltd. reported a total order book value of Rs.1,158.54 crore, comprising Rs.257.56 crore in Annual Maintenance Contracts (AMC) and Rs.901.28 crore in equipment orders.
The company’s portfolio is segmented into Training Simulators and Anti-Drone Systems. Overall, the total of Rs.1,158.84 crore is split with 62 percent sourced domestically and the remaining 38 percent from exports.
Management Commentary
“I am pleased to share that Zen Technologies Limited has had an exceptionally strong start to FY25. Our strong balance sheet and ongoing investment in R&D ensure we remain at the cutting edge of technology, ready to meet evolving customer needs. We are excited about the future and confident in meeting our guidance of Rs.900 crore of turnover in the current financial year.” said Zen Technologies Ltd. chairman and managing director Mr. Ashok Alturi.
Shareholding Pattern
As per the shareholding pattern of June 2024, the Promoters hold a 55.07 percent stake in the company, Foreign Institutional Investors (FII) hold a 3.09 percent stake, while the Domestic Institutional Investors (DII) and Retail investors own a 3.37 percent and 38 percent stake in Zen Technologies Ltd., respectively.
Company Profile
Zen Technologies Ltd. specializes in creating and producing combat training and counter-drone solutions tailored for defence and security forces. The company is dedicated to advancing indigenous technologies that benefit the Indian armed forces, state police, and paramilitary units.
Headquartered in Hyderabad, India, Zen Technologies also operates offices in the UAE and the USA.
Written by – Siddesh S Rakar
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