Zen Technologies posts quarterly profit of 89.54 crore rupees, up 50.7%
Key Facts
Zen Technologies announced its unaudited results for the second quarter and first half of fiscal 2027 on 1 November, reporting adjusted consolidated profit after tax of 89.54 crore rupees, up 50.7% from 59.40 crore in the corresponding period. Consolidated sales were 345.13 crore rupees, compared with 173.57 crore a year earlier, an increase of 98.8%. The company said the sales represented its highest quarterly consolidated revenue on record. Total revenue was 361.84 crore rupees, including other income of 16.71 crore, compared with total revenue of 198.88 crore in the corresponding quarter. The results put accelerating sales and profit growth at the forefront of the company's quarterly performance, after the first quarter came in weaker than the year-earlier period.
The second-quarter surge followed sales of 141.64 crore rupees in the first quarter of fiscal 2027, compared with 158.22 crore in the first quarter of the previous year. First-quarter profit after tax was 34.46 crore rupees, compared with 47.75 crore a year earlier. For the first half, consolidated sales rose to 486.77 crore rupees from 331.79 crore. Adjusted first-half profit after tax attributable to non-controlling interests was 124 crore rupees, compared with 107.15 crore in the corresponding period. Second-quarter sales alone thus exceeded first-quarter sales, while adjusted first-half profit remained above its year-earlier level.
On margins, second-quarter earnings before interest, taxes, depreciation and amortization were 131.99 crore rupees, compared with 64.74 crore a year earlier. The operating margin rose to 38.2% from 37.3% in the same period last year. But the overall EBITDA margin fell to 41.1% from 45.2%. The divergence between the two measures shows that the operating margin improved while the overall margin declined year on year. This came as quarterly sales reached a record level, according to the company, without preventing a decline in the gross margin.
The company recorded order inflows of 481.81 crore rupees during the quarter, taking its consolidated order book to 1,375.70 crore on 30 September 2026. Zen Technologies attributed order growth to a policy environment supportive of domestic defence procurement. It said the Defence Acquisition Council had recently granted Acceptance of Necessity for capital procurement proposals, with about 82% of those proposals earmarked for domestic sources. The order book represents work registered with the company at quarter-end, while order inflows reflect the value added during the period. The company linked its order opportunities to the push to strengthen sourcing from the domestic defence industry, without providing another figure in the results for execution expectations.
The chairman and managing director said the company had begun delivering fast-track procurement orders received in the previous year ahead of contractual deadlines. He added that the company's ownership of its technology enabled it to modify products within weeks when army requirements changed. In its first-quarter results presentation, the company said the timing of order execution was likely to concentrate revenue recognition in the second and third quarters of fiscal 2027. The second-quarter results followed the weaker year-on-year first quarter, consistent with that stated revenue timing. The outlook puts the third quarter among the periods in which the company said revenue recognition was likely to be concentrated, against the backdrop of order execution schedules.
Before the results announcement, the stock closed down 1.83% at 1,592 rupees on the NSE on 30 October, according to a CNBC TV18 report. NDTV Profit data on 2 November showed a price of 1,588.40 rupees, down 2.05% from the previous close of 1,621.60 rupees. These prices indicate trading below the previous close in the available data and do not support describing the stock as rising 9% on 2 November. The trading result reported for 30 October predates the company's announcement on 1 November. The latest data reported on 2 November give the share price and its percentage decline from the previous close.