Zen Technologies Posts Adjusted Quarterly Profit of 89.54 Crore Rupees, Up 50.7%
Key Facts
Zen Technologies on 1 November reported unaudited results for the second quarter and first half ended 30 September 2026, posting quarterly profit after tax adjusted for non-controlling interests of 89.54 crore rupees, compared with 59.40 crore a year earlier, a 50.7% increase. Consolidated sales were 345.13 crore rupees, up 98.8% year on year, and the company said they were its highest quarterly consolidated revenue on record. Total revenue rose to 361.84 crore rupees, including 16.71 crore from other operating revenue, compared with 198.88 crore in the same quarter of the previous financial year. The figures show a sharp acceleration in quarterly sales, with adjusted profit growing more slowly than revenue. The results followed a first quarter in which sales and profit declined year on year, making the comparison between the two half-year periods another indicator of improved performance in the second quarter.
In the first half of fiscal 2027, consolidated sales reached 486.77 crore rupees, up 46.71% from the corresponding period, while profit after tax adjusted for non-controlling interests rose 15.73% to 124 crore rupees. First-quarter sales were 141.64 crore rupees, compared with 158.22 crore in the first quarter a year earlier. Adjusted profit after tax in that quarter was 34.46 crore rupees, versus 47.75 crore a year earlier. The second-quarter result therefore offset some of the weak start to the financial year, with sales in the quarter alone exceeding first-quarter sales. Adjusted profit growth for the first half nevertheless remained below sales growth, according to figures presented by the company.
Operating EBITDA rose to 131.99 crore rupees in the second quarter, from 64.74 crore in the corresponding period, and its margin increased to 38.2% from 37.3%. By contrast, EBITDA margin was 41.1%, compared with 45.2% a year earlier, a different measure from operating EBITDA margin. Sales growth was accompanied by an improved operating margin and higher operating EBITDA, while EBITDA margin declined year on year. On orders, the company received new orders worth 481.81 crore rupees during the quarter and executed orders worth 345.13 crore. The consolidated order book stood at 1,375.70 crore rupees on 30 September 2026, providing a picture of the company’s recorded business at the end of the period.
The order book comprises 995 crore rupees in equipment orders and 380.70 crore in maintenance, while domestic orders totaled 1,283.84 crore rupees against exports of 91.86 crore. The company said about 82% of capital procurement proposals granted Acceptance of Necessity by the Defence Acquisition Council are earmarked for sourcing from India’s domestic defence industry. That proportion links part of the order opportunity to the government’s procurement focus on the domestic defence industry, while the order book breakdown shows that most recorded business is domestic. Chairman and Managing Director Ashok Atluri also said Zen had begun delivering Fast Track Procurement orders received in the previous year ahead of contractual deadlines. He added that the company’s proprietary technology allows products to be modified within weeks when army requirements change, saying, "Product changes happen in weeks, not procurement cycles."
The company announced an agreement on 21 October to acquire a majority stake in Cogknit Semantics, a domestic developer of battlefield management systems. Zen is scheduled to hold an investor call on 2 November at 3:30 p.m. India time to discuss its second-quarter and first-half fiscal 2027 performance. The move followed the company’s results announcement on 1 November, while available information does not provide further details on the stock’s performance during the rest of the session. The developments combine strong quarterly results, an order book dominated by domestic business and an expansion move in battlefield management systems.