Zen Technologies shares decline over 6% after posting 5.2% YoY fall in Q2 net profit; revenue down 28%

As of 1:37 pm, the stock was trading 4.09% lower at ₹1,339.40 per equity share.

The scrip lost more than 4% over the past five days and over 6% in the month. It declined 8% in the last six months. On a year-to-date basis, it has lost about 46%.

While the share reached a 52-week high of ₹945.35 on February 19, 2025, it touched a year’s low of ₹2,627 apiece on December 24, 2024.

Zen Technologies’ Q2 result

The Indian defence company posted a 5.22% year-on-year (YoY) decline in its consolidated profit after tax (PAT) to ₹59.40 crore in the September quarter of FY26, compared to ₹62.67 crore in the corresponding period of the previous fiscal year.

During the quarter under review, its sales or revenue from operations contracted by 28.23% YoY to ₹173.57 crore, as against ₹241.84 crore in the second quarter of the 2024-25 fiscal year (Q2FY25).

The anti-drone technology and defense training solutions provider’s revenue and profit were impacted by procedural delays in order finalisations, it said in a regulatory filing dated Saturday.

At an operational level, the firm’s EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹90.05 crore in Q2FY26, marking a 1.77% YoY jump from ₹88.48 crore in the year-ago period.

Its EBITDA margin expanded to 51.88% during the quarter, from 36.58%in the September quarter of FY25.

As of September 30, 2025, the company’s total order book stood at ₹675.04 crore, including ₹554.12 crore in domestic and ₹120.92 crore in exports.

What the Chairman said

Commenting on the earnings, Ashok Atluri, Chairman and Managing Director at Zen Technologies, said: “Our Q2 performance reflects continued operational strength and disciplined execution, even as revenue and profit were impacted by procedural delays in order finalisations. The fundamentals of our business remain solid, with strong liquidity and increasing value addition from our subsidiaries.”

He added that during the quarter, the firm posted lower turnover compared to the same period last year. Despite this, its operational EBITDA margins remained healthy.

Looking ahead, he said, the company expects subsidiary contributions as it scales up its execution and fully realises its synergies.

Furthermore, Zen’s financial position remains robust with liquidity of over ₹1,100 crore as of September 30, 2025. The company continues to prioritise R&D investments to deepen its technological edge and expand its product portfolio, Alturi said.

“In the aftermath of Operation Sindoor, the Government of India initiated a series of emergency procurement measures to address immediate operational requirements. As a result, the closure timelines for certain regular Requests for Proposals (RFPs) have been temporarily delayed. This development is procedural in nature and does not impact the underlying demand or long-term revenue visibility,” he stated.

“The deferred orders remain active within the procurement system and are expected to be released in due course. At the same time, Operation Sindoor provided real-world validation of Zen’s operational equipment, following which the Company is experiencing increased interest, particularly for its anti-drone systems,” Alturi added.

“We remain confident that the temporary headwinds being witnessed in FY26 will give way to a stronger performance in the years ahead, driven by our continued focus on innovation, disciplined execution, and the expanding opportunities in India’s defence modernisation programme,” he further said.

Zen Technologies has a total market capitalisation of ₹12,026.68 crore, as of October 27, 2025, according to data on the NSE.