Zen Technologies’ shares dropped 10% to ₹976, hitting an 8-month low after weak quarterly results. While revenue grew by 53%, profit margins shrank due to higher costs. The company gained new orders but faced a decline in its overall order book.
Zen Technologies Shares Drop 10%, Hit 8-Month Low
Zen Technologies, a company known for its defence simulation and anti-drone technology, saw its shares drop 10% today, February 8, marking the third straight session of losses. The stock hit an 8-month low of ₹976.
In the previous trading session, the stock hit a 20% lower circuit after the company’s December quarter results failed to impress investors. A decline in its order book and falling profit margins hurt investor confidence, causing the once high-performing stock to drop significantly.
December Quarter Performance
During the December quarter (Q3FY25), Zen Technologies reported revenue of ₹152.21 crore, a 53% increase compared to last year. EBITDA (earnings before interest, tax, depreciation, and amortization) rose to ₹66.24 crore from ₹46.73 crore.
However, profit margins dropped to 38% from 45% due to a rise in operating costs. Net profit increased by 30% year-on-year (YoY) to ₹39.72 crore, but profit margins fell to 22% in Q3FY25, compared to 29% in Q3FY24.
Decline in Order Book
The company’s order book weakened during the quarter. As of December, it stood at ₹816 crore, down from ₹956 crore at the end of the second quarter. In Q3FY25, Zen Technologies secured new orders worth ₹1.69 crore, but all of it came from Annual Maintenance Contracts (AMC), with no new equipment orders.
In contrast, the company had secured ₹668 crore in new orders in Q2FY25, including ₹288 crore from AMC contracts.
Future Growth and Government Support
Despite short-term challenges, Zen Technologies is in a strong position for the long term. The Indian government is increasing its defence spending, as seen in the Union Budget 2025, which allocated over ₹6.81 lakh crore to the Ministry of Defence—a 9.53% increase from FY25.
A significant ₹1.80 lakh crore is set aside for new equipment purchases for the armed forces, which could benefit companies like Zen Technologies.
Strategic Investments for Expansion
To strengthen its position, the company has invested in two firms—Vector Technics Private Limited and Bhairav Robotics Private Limited. These investments will help Zen Technologies expand beyond combat training into advanced defence technologies, making it more competitive in global markets.
The acquisitions will boost the company’s capabilities in UAV propulsion, autonomous robotics, and aerospace components, contributing to India’s goal of self-reliance in defence manufacturing.
Stock Falls 60% in Two Months but Shows Long-Term Growth
Zen Technologies’ stock has dropped 60% in less than two months, falling from ₹2,445 to ₹972. However, despite this sharp correction, the stock has still gained 315% over the past two years and an impressive 1,700% over the past five years.
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