Quarterly Financial Results
Zen Technologies Q1 FY27 Results: Order Book Remains Strong at ₹1,239 Crore
NSE
zentec
BSE
533339
- Zen Technologies reported Q1 FY27 results with lower year-on-year revenue and profitability as execution of its recently secured defence orders is expected to accelerate from Q2 FY27 onward.
- The company closed the quarter with a consolidated order book of ₹1,239.02 crore and expanded its defence technology portfolio.
PRICE-SENSITIVE TRIGGER
Event: Zen Technologies released its Q1 FY27 investor presentation highlighting financial performance, order book status and product developments.
Type: Quarterly Financial Results
Impact: Neutral
Immediate Effect: Revenue remained subdued due to the early execution stage of recently secured orders, while a healthy order book provides execution visibility for the coming quarters.
Metrics:
Key Financial Metrics:
- Revenue from Operations: ₹141.64 crore
- Total Revenue: ₹160.79 crore
- EBITDA: ₹57.88 crore
- EBITDA Margin: 40.9%
- Operational EBITDA: ₹38.72 crore
- Operational EBITDA Margin: 27.3%
- Profit Before Tax (before associates & exceptional items): ₹48.93 crore
- PAT (Adjusted for Non-Controlling Interest): ₹34.46 crore
- Interest Cost: ₹1.09 crore
- Depreciation: ₹7.86 crore
- Consolidated Order Book: ₹1,239.02 crore
Highlight:
- Consolidated Order Book: ₹1,239.02 crore as of 30 June 2026.
What Happened ?
Zen Technologies stated that Q1 FY27 revenue aligned with management expectations as execution of orders secured from October 2025 is weighted towards Q2 and Q3 FY27. During the quarter, the company strengthened its defence portfolio with new anti-drone and unmanned systems while maintaining a sizeable executable order pipeline. It also received an additional simulator order worth ₹177.50 crore in July 2026.
key details
Operations & Product Developments:
- The company ended June 2026 with a consolidated order book of ₹1,239.02 crore, comprising ₹920.59 crore of equipment orders and ₹318.43 crore of AMC orders.
- Zen received an additional ₹177.50 crore simulator order in July 2026 for the upgradation and integration of Tank and Crew Gunnery Simulators.
- The company introduced multiple defence products, including an AI-powered anti-drone system, Hyperstrike interceptor drone, Zen Vrishab unmanned ground vehicle, and Integrated Smart Border Suite.
- Zen completed research and development for its first Air Force training solution and said negotiations with OEM partners are at an advanced stage for entering the air simulator segment.
- The company highlighted continued government focus on counter-drone systems, layered air defence and Buy Indian-IDDM procurement, supporting opportunities across its defence portfolio.
Note:
- Management expects most of the existing order book to convert into revenue from Q2 FY27 onwards, with additional orders received during Q2 expected to begin execution by Q4 FY27.
Risk Analysis
Summary:
- Revenue recognition remains dependent on the execution schedule of defence contracts, while future performance depends on timely order conversion and procurement timelines.
Key Risks:
- Revenue recognition is weighted towards subsequent quarters as contracts move through the execution cycle.
- Defence procurement timelines and customer execution schedules may influence quarterly financial performance.
- The investor presentation contains forward-looking statements subject to business, competitive and economic risks.
- Timely completion of OEM partnerships is important for expansion into the air simulator business.
Worst Case:
- Delays in defence procurement or execution could postpone revenue conversion from the existing order book.
Risk Level: Medium
Company Commentary
- Management stated that Q1 FY27 performance was consistent with expectations because recently secured orders are scheduled for execution mainly during Q2 and Q3 FY27.
- The company said its strengthened order book provides clear execution visibility and supports planned deliveries during FY27.
- Zen highlighted the expansion of its anti-drone and defence training portfolio through new AI-enabled and unmanned defence solutions introduced during the quarter.
- Management reaffirmed its strategy of expanding training solutions across the Army, Navy and Air Force while leveraging favourable domestic defence procurement trends.
Official Exchange Filing: Zen Technologies Limited
