Zen Technologies shares plunge 11% after Q4 net profit drops 69% to ₹31 crore

During the Q4FY26 results, the company’s revenue for the quarter dropped to ₹178 crore as compared to ₹324 crore in the same quarter last year. The trend was visible in FY26 results as the full-year revenue dropped from ₹973 crore as compared to ₹687 crore. This was primarily due to slower order intake during the quarter.

The company’s Q4FY26 order inflow stood at ₹431 crore with a total order backlog of ₹1336 crore. The order inflow for the quarter remained subdued compared to the previous quarter, as Q3FY26 order inflow stood at ₹585 crore. The poor sales growth is largely attributed to slower order execution, along with slower order inflow.

On the operating front, the EBITDA for the quarter stood at ₹73.5 crore as compared to ₹162 crore in the previous year’s same quarter. Similarly, the EBITDA margin for the quarter also stood at 41.3% vs 50% in the same period last year. The Operational EBITDA for the quarter stood at ₹50 crore as compared to ₹137 crore in the same period last year.

On the bottom line front, the company’s net profit for the quarter dropped 69% YoY to ₹31.5 crore as compared to ₹101 crore. On a YTD basis, Zen Technologies' share price gained 9.8%, outperforming the benchmark NIFTY50 index for the same period.

Management outlook

“FY26 financial performance was muted relative to FY25, a trajectory we have communicated earlier to our investors and stakeholders. What the headline numbers do not capture is the structural transformation that took place over the last 2 years: Zen ended FY26 as a defence company with five capabilities that are ready to be offered to the Armed Forces — training simulation and systems, counter-drone solutions, automated weapons stations, combat robotics and drones.

With a strong forward order book, a structurally more diversified earnings base, and an expanded product portfolio and a supportive policy environment, we believe Zen is entering FY27 better positioned than at any point in our recent history”.