Zen Technologies’ shares have fallen nearly 10% today, and around 30% in the past two days, following the release of its Q3FY25 financial results. The drone manufacturing company reported a net profit of ₹38.62 crore for the quarter, marking a 22% year-on-year (YoY) growth from ₹31.67 crore in the same period last year. However, on a sequential basis, net profit showed a significant decline of 40.8%, down from ₹65.24 crore in Q2FY25.
The company’s revenue from operations rose 44% YoY, reaching ₹141.52 crore compared to ₹98.08 crore in Q3FY24. However, there was a significant drop of 41.44% from ₹241.69 crore in the previous quarter, reflecting a weak performance on a quarter-on-quarter (QoQ) basis.
At the operational level, Zen Technologies reported a 21% growth in earnings before interest, tax, depreciation, and amortization (EBITDA), which stood at ₹58.69 crore, up from ₹48.41 crore in Q3FY24. However, EBITDA margins weakened to 35.90%, compared to 47.34% last year, although they did improve from the previous quarter’s margin of 35.12%.
Zen Technologies remains confident about its full-year performance, stating that it expects to meet its EBITDA target of 35% and profit after tax (PAT) margin of 25%. Additionally, the company’s order book remained strong at ₹816.91 crore as of December 2024, indicating a healthy pipeline for the upcoming quarters.
Zen Technologies, in its latest appearance on CNBC-TV18, has confirmed its revenue target of ₹900 crore for FY25, with a robust margin of 35%. The company emphasized its plans for the future, including a strategic focus on acquiring businesses and meeting working capital needs. The recent Qualified Institutional Placement (QIP) was specifically designed to help fund acquisitions and strengthen working capital, with working capital days projected to be approximately 200.
The company also highlighted its operations in the simulation and marine simulation sectors through its subsidiaries ARIL and ARI. Zen Technologies has made significant strides in these areas, including the development of extraordinary intellectual property by its subsidiary, Vector Technics, which is now exporting to North America.
Looking ahead, Zen Technologies is confident in its growth trajectory, targeting an average CAGR of 50% over the next three years. The company also expects to finalize ₹800 crore in orders by Q1FY26, setting the stage for continued expansion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
