Zen Technologies (533339) Q4 24/25 earnings summary

Executive summary

• Achieved record annual and quarterly performance in FY25, with consolidated revenue up 121% year-over-year to ₹973.64 crore and net profit attributable to shareholders rising to ₹28,024.41 lakhs.

• Surpassed guidance with EBITDA and PAT margins above 35% and 25% respectively, and delivered India's first band-independent counter-drone systems proven in recent operations.

• Secured major Ministry of Defence orders for Integrated Air Defence Combat Simulators and expanded into naval simulation, drone components, and defence robotics through strategic acquisitions.

• Liquidity remains robust at ₹1,037 crore, supporting growth, R&D investments, and further expansion into North America.

• The Board recommended a final dividend of ₹2 per share, subject to shareholder approval.

Financial highlights

• FY25 consolidated revenue grew 121% year-over-year to ₹973.64 crore; standalone revenue up 116% to ₹930.67 crore.

• Consolidated operational EBITDA rose 107% to ₹383.03 crore; PAT increased 119% to ₹280.24 crore.

• Export revenue reached nearly INR 300 crores, with key markets in Africa, CIS, and the Middle East.

• Cash and cash equivalents at year-end stood at ₹7,415.40 lakhs, with total assets increasing to ₹2,04,902.36 lakhs.

• UTS subsidiary contributed INR 125-130 crores to annual revenue; ARI contributed INR 137 crores for FY2025.

Outlook and guidance

• FY2026 expected to be muted due to timing of order execution, but medium-term guidance remains aggressive with a cumulative turnover target of over INR 6,000 crores for FY2026-FY2028.

• 50% CAGR targeted over the next three years, with FY2027 and FY2028 projected at INR 2,000 crores and INR 3,000 crores respectively.

• Order book as of March 31, 2025, was approximately ₹69,194 lakhs, indicating strong future revenue visibility.

• Plans to further invest in R&D and pursue inorganic growth opportunities, with R&D expenditure to consistently range between INR 50-60 crores.

• Expansion into North America and new acquisitions are expected to drive further growth.