Shares of Zen Technologies Ltd. hit the 5% lower circuit at ₹1,690.70 in Monday’s trade after the company reported a sharp drop in its Q1 FY26 earnings and a slowdown in order inflows. The defence equipment maker’s net profit fell by 33% year-on-year to ₹53 crore for the quarter ended June 30, 2025, while revenue declined 38% YoY to ₹158.21 crore.
EBITDA dropped 42% YoY to ₹64.69 crore, with the EBITDA margin narrowing by 284 basis points. On a sequential basis, performance weakened further, with most key metrics falling over 50% and margins contracting by 156 basis points.
Zen Technologies’ order inflow stood at ₹64.26 crore for Q1, significantly lower than the ₹168 crore in the March quarter. Its total consolidated order book now stands at ₹754 crore.
Despite the weak Q1, the company maintained a positive long-term outlook. Chairman and Managing Director Ashok Atluri called FY26 a year of consolidation and expressed confidence in achieving the ₹800 crore H1FY26 order inflow guidance. Of this, ₹150 crore has already been secured. Management also expects additional orders under the government’s emergency procurement program, especially for anti-drone systems.
Zen reiterated its ambition to achieve ₹6,000 crore in cumulative revenue over the next three financial years.
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