Zen Technologies continues to bleed; shares tumble 34% in 1 week; here is what management said on FY25 guidance

The stock on Monday, February 17, too, ended at its lower circuit limit of 20%, following its December quarter (Q3 FY25) results, and on Tuesday, February 18, it ended at ₹971.50 on the BSE, down 10%.

The Q3 numbers declined on a sequential basis, which led to a sell-off in the counter. Further, a drop in margins is weighing on the investor sentiment.

Zen Technologies Q3 FY25 Results

The company for the quarter under review reported a 37% drop on a sequential basis in its consolidated sales at ₹152.21 crore.

It had posted sales of ₹241.84 crore in the September 2025 quarter (Q2 FY25).

On a year-on-year basis, the figure grew 53%.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, came in at ₹66.24 crore, down 25% on a sequential basis, but up 41.7% on a YoY basis.

EBITDA margins stood at 38.01% against 35.35% in the September quarter and 45.04% in the year-ago period.

Profit after tax (adjusted for non-controlling interests) or net profit for the December quarter was ₹39.72, up 29.8% YoY but down 36.6% sequentially.

Commenting on the results, Ashok Atluri, Chairman & MANAGING DIRECTOR, said, “I am pleased to provide an update on our Q3FY25 performance, which demonstrates a stable performance, keeping us on track to meet our stated guidance of ₹900 crore revenues for FY25."

The Union Budget 2025 demonstrates the government's commitment to strengthening the defence sector, with a record allocation of over ₹6.81 lakh crore for the Ministry of Defence, marking a 9.53% increase from FY25. This includes a substantial ₹1.80 lakh crore earmarked under the Capital Budget of the Armed Forces, providing significant tailwinds for our industry.

"Our liquidity remains strong, with ₹1,028 crore in bank balances as of December 31, 2024. Furthermore, we completed the expansion of our assembly unit at Maheshwaram. This expansion enhances our ability to scale up operations to meet growing demand. In this quarter, we experienced a rise in profitability due to higher other income; however, we remain confident that we will achieve our EBITDA target of 35% and PAT margins of 25% by the end of the financial year."

Atluri further added that the company's order book remains robust at ₹816.91 crore as of December 2024, reflecting a healthy pipeline for the coming quarters. "Our strategic focus on securing new contracts and diversifying our portfolio ensures sustained revenue visibility and positions us well for continued growth," the MD added.