Zen Technologies (533339) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 performance was below expectations due to deferred execution of a major order, with revenue and profitability impacted by customer-driven design changes and delayed shipments, now expected to be recognized in Q2.

• EBITDA and PAT margins were maintained, reflecting operational discipline and cost efficiency.

• The consolidated order book stands at ₹754.56 crore as of June 30, 2025, with a debt-free balance sheet and liquidity of ₹918 crore.

• Strategic acquisitions, including 76% of TISA Aerospace, expanded capabilities in UAVs and loitering munitions.

• Integration of subsidiaries is progressing well, contributing to operational synergies.

Financial highlights

• Consolidated Q1 FY 2026 revenue was ₹158.22 crore, down from ₹254.62 crore year-over-year.

• Standalone Q1 FY 2026 revenue from operations was ₹111.06 crore, down from ₹253.96 crore.

• Consolidated operational EBITDA for Q1 FY 2026 was ₹64.70 crore (40.90% margin), down from ₹111.35 crore (43.73%) in Q1 FY 2025.

• Standalone PAT for Q1 FY 2026 was ₹37.12 crore, compared to ₹74.18 crore in Q1 FY 2025.

• Consolidated PAT (adjusted for non-controlling interests) was ₹47.75 crore, down from ₹76.81 crore year-over-year.

Outlook and guidance

• FY 2026 is expected to be muted, with growth dependent on order book by end of Q2; no specific annual revenue guidance provided.

• Confident in achieving H1 FY 2026 order inflow guidance of ₹800 crore, with ₹150 crore secured and ₹650 crore expected in the first half.

• Targeting cumulative revenue of ₹6,000 crore over the next three financial years.

• H2 is expected to see a pickup in order inflow, especially for anti-drone systems and exports, with FY 2027 and FY 2028 projected as strong growth years.

• Order book at the group level stood at ₹754.56 crore as of 30 June 2025, indicating strong future revenue visibility.