Shares of Zen Technologies hit a 20% lower circuit in Friday’s session following the release of its Q3 FY25 financial results. The company, which specializes in drone manufacturing and defense technology, reported a net profit of ₹38.62 crore, marking a 22% year-on-year (YoY) increase from ₹31.67 crore in the same quarter last year. The growth was driven primarily by higher other income. However, on a quarter-on-quarter (QoQ) basis, net profit declined 40.8% from ₹65.24 crore in the previous quarter.
Revenue and Operational Performance
Zen Technologies’ revenue from operations in Q3 rose 44% YoY to ₹141.52 crore, up from ₹98.08 crore in Q3 FY24. However, revenue dropped 41.44% QoQ from ₹241.69 crore reported in the September quarter.
At the operational level, EBITDA increased 21% YoY to ₹58.69 crore from ₹48.41 crore. However, EBITDA declined 33.18% QoQ from ₹87.84 crore in Q2 FY25.
The EBITDA margin stood at 35.90%, down from 47.34% YoY but slightly improving from 35.12% QoQ.
Management Commentary & Order Book
Ashok Atluri, Chairman and Managing Director of Zen Technologies, stated:
“In this quarter, we experienced a rise in profitability due to higher other income; however, we remain confident that we will achieve our EBITDA target of 35% and PAT margins of 25% by the end of the financial year. Our order book remains robust at ₹816.91 crore as of December 2024, reflecting a healthy pipeline for the coming quarters.”
Strategic Investments
Zen Technologies announced strategic investments in two companies:
- Vector Technics Private Ltd
- Bhairav Robotics Private Ltd
These investments aim to enhance Zen’s capabilities in UAV propulsion, autonomous robotics, and aerospace components, furthering self-reliance in defense manufacturing. The company emphasized that these strategic moves position Zen Technologies to compete globally, catering to international markets seeking advanced, Indian-made defense solutions.
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