Zen Technologies shares plunge 9% after weak quarterly earnings; check all Q1 FY27 numbers

The anti-drone technology and defence training solutions provider posted a 29% decline in its consolidated net profit at ₹34 crore for the quarter ended June 30 of the current fiscal year (Q1 FY27), as compared to ₹48 crore for the same quarter of the previous fiscal year.

The Hyderabad-based firm’s revenue from operations stood at ₹142 crore year-on-year (YoY) for the quarter under review as compared to ₹158 crore, marking a fall of 10%.

“Q1 FY27 revenue is consistent with our expectations and reflects the early stage of our current order book's execution cycle, with expected revenue weighted towards Q2 FY27 and Q3 FY27,” Zen Tech said.

Zen Tech’s operating profit, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), witnessed a decline of 40% to ₹39 crore as against ₹65 crore YoY.

In Q1 FY27, the firm’s margin contracted to 27.32% in contrast to 40.95% reported in the same quarter last fiscal year.

Order book details

The order book of the company improved substantially and was largely secured starting from October 2025, Zen Tech said in a statement. The typical execution cycle of these orders was around twelve months, and further orders received till Q2 FY27 are expected to be partially executed by Q4 FY27, the firm added.

“We entered FY27 with clear visibility on execution. We closed the quarter with a consolidated order book of ₹1,239.02 crore as at 30 June 2026 and subsequently received a further simulator order of ₹177.50 crore in July 2026 for the upgradation and integration of Tank and Crew Gunnery Simulators,” the company said.

Zen Technologies further said that, taken together, its order book remains strong and executable, with the majority expected to be converted into revenue from Q2 FY27 onwards, adding that the company remains on track with its delivery schedules.

QIP fund utilisation timeline extended

In a regulatory filing, Zen Technologies said that its Board of Directors has approved an extension for the utilisation of unutilised proceeds from its Qualified Institutional Placement (QIP), which was completed on August 23, 2024.

As per the original plan, the funds allocated for working capital, inorganic growth, acquisitions, strategic initiatives, and general corporate purposes were to be utilised within 24 months.

Based on the Audit Committee’s recommendation, the Board has now extended the timeline for using the remaining funds earmarked for inorganic growth, acquisitions, strategic initiatives, and general corporate purposes by another 24 months. The revised utilisation period will now run until August 22, 2028.

The company also clarified that there is no change in the stated objectives or end use of the QIP proceeds. The extension applies only to the timeline for deploying the unutilised funds.

Zen Technologies share price trends

At 10:46 AM, Zen Technologies shares were trading at ₹1,685 apiece on the National Stock Exchange, declining 4.73%.

From the beginning of the year, Zen Technologies shares have jumped 24%. Over a month’s time, the stock has fallen 3.4%, while it has rallied 32% in the past six months.

Shares of the firm had hit a 52-week high of ₹2,024 on June 22, 2026, and a 52-week low of ₹1,223 on January 14, 2026.

According to NSE data, as of July 27, 2026, Zen Tech has a total market capitalisation of ₹15,200.38 crore.