Zen Technologies’ shares jump 5% to hit upper circuit as first quarter revenue nearly doubles; profit soars 63%

Operating EBITDA rose 61.58% to ₹111.35 crore during the quarter while operating EBITDA margin declined to 43.73% from 52.03% in the same period a year ago. Meanwhile, net profit rose 63.13% to ₹76.82 crore.

Zen Technologies provides state-of-the-art defence training solutions, drones and anti-drones solutions. The company manufactures land-based military training simulators, driving simulators, live range equipment and anti-drone systems. It has a dedicated research and development (R&D) and production facility in Hyderabad.

Ashok Atluri, Chairman and Managing Director of Zen Technologies said the firm continues to be an IP powerhouse, with over 155 global patents filed and about 75 granted. “Additionally, we are experiencing strong regulatory tailwinds, including increased utilisation of simulators by the armed forces and aggressive export targets set by the government,” he said. The company remains confident in meeting its guidance of ₹900 crore of turnover in the current financial year, he added.

Zen Technologies said it is looking to grow the sales of equipment and expand the product portfolio with strong focus on emerging space anti-drone systems. It is also looking for inorganic acquisitions which fit in with its vision and positioning.

One of the firm’s strategic priorities include enhancing its technical capabilities by increasing investments in R&D and getting into high value-added complex systems. The company said it is also evaluating tie-ups with original equipment manufacturers and is aiming to streamline operational efficiencies, focus on cost optimisation and enhance financial performance.

“The business model of the company has been strategically positioned to reduce lumpiness and enhance the profitability in the coming years,” the company told investors.

Shares of the firm have risen by nearly 104% since the beginning of the year. The stock has gained over 160% in the last one year.