Zen Technologies Q1 FY27 Results (NSE: ZENTEC)
Signal: Revenue declined
The read
Q1FY27 revenue and PAT declined YoY, margins compressed due to operating expenses growth, but order book is strong at ₹1,239 Cr, and management expects revenue weighted towards Q2/Q3.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹141.64 Cr | -10.5% | -20.5% |
| EBIT | ₹50.02 Cr | -37.6% | |
| Net profit | ₹34.46 Cr | -27.8% | |
| EBIT margin | 40.9% |
P&L walk
Revenue declined 10.5% YoY and margins compressed sharply as operating expenses grew faster than revenue, leading to a 27.8% drop in PAT; however, strong order book of ₹1,239 Cr provides future revenue visibility.
Key positives
- Strong order book of ₹1,239.02 Cr provides revenue visibility.
- Subsequent order win of ₹177.50 Cr in July 2026 for Tank and Crew Gunnery Simulators.
- New product launches (AI-powered anti-drone system, Hyperstrike interceptor drone, Zen Vrishab UGV, Integrated Smart Border Suite).
- Interest cost declined 68.5% YoY to ₹1.09 Cr.
- Sequential PAT improvement of 9.3% from Q4FY26.
Key concerns
- Revenue declined 10.5% YoY to ₹141.64 Cr.
- EBITDA margin contracted 1380 bps YoY to 40.9%.
- Operational EBITDA margin fell to 27.3% from 40.9% YoY.
- Total operating expenses grew 10.1% YoY despite revenue decline.
- PAT down 27.8% YoY to ₹34.46 Cr.
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