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Key Points

Zen Technologies reported a sharp 53% sequential drop in Q1 profit, falling to Rs 53 crore. Revenue also declined by over 50% compared to the previous quarter. The company recently announced acquiring a majority stake in TISA Aerospace for Rs 6.6 crore. Shares of Zen Technologies fell 5% ahead of the earnings announcement.

Key Points: Zen Technologies Q1 Profit Drops 53% Sequentially to Rs 53 Crore

  • Zen Technologies' Q1 profit drops 53% sequentially to Rs 53 crore
  • Revenue declines 50% QoQ to Rs 158 crore
  • Company holds Rs 754.56 crore in pending orders
  • Acquires 54.7% stake in TISA Aerospace for Rs 6.6 crore
2 min read

Zen Technologies' profit plunges 53 pc sequentially to Rs 53 crore in Q1

Zen Technologies reports a 53% sequential profit decline in Q1 FY26, with revenue also falling sharply amid recent stake acquisition plans.

"The company posted a consolidated net profit of Rs 53 crore, down 53% from the previous quarter. – Zen Technologies"

Mumbai, July 26

Zen Technologies on Saturday said that its net profit for the quarter ended on June 30 (Q1 FY26) stood at Rs 53 crore, down 53 per cent sequentially and 32 per cent year-on-year.

The company had posted a consolidated net profit of Rs 113 crore in the preceding quarter (Q4 FY25) and a profit of Rs 79 crore in the corresponding quarter a year ago (Q1 FY25).

Meanwhile, its revenue from operations for the quarter under review stood at Rs 158 crore, down over 50 per cent from Rs 324.97 crore in Q4 FY25. It was down over 37 per cent year-on-year, too, from Rs 254 crore in Q1 FY25.

The defence company posted a total expense of Rs 103 crore for the quarter, as compared to Rs 195 crore in the January-March quarter.

As of June 30, the group had orders totalling Rs 754.56 crores, according to the filing.

During the quarter, the company has transferred 4,260 equity shares of face value of Rs 1/- each, to eligible employees, to whom the stock options were granted and vested under Zen Technologies Limited Employee Stock Option Plan-2021, the company said.

Earlier last month, the Hyderabad-based company announced that it would acquire a majority stake in TISA Aerospace Pvt Ltd.

According to the company, it would acquire a 54.7 per cent stake in TISA Aerospace at a cost of nearly Rs 6.6 crore.

The deal will be finalised by the transfer of 2,06,518 equity shares from current company shareholders.

Meanwhile, Zen Technologies shares tanked 5 per cent on Friday, the last trading day of the week. The stock closed at Rs 1,773.20, down Rs 93 or 5 per cent. In the last 5 days, the scrip fell by over 4 per cent and in a month, the stock slipped over 6.5 per cent.

Its 52-week high and low values stood at Rs 2,627.0 and Rs 945.35, respectively.

- IANS

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Reader Comments

P
Priya S
The acquisition of TISA Aerospace seems like a strategic move despite the poor quarterly results. Long-term investors should look at the order book of ₹754 crore - that's healthy! Defence sector has cyclical nature.
A
Aman W
Share price down 5% is actually not bad considering 53% profit drop. Market seems to be pricing in future potential. The ESOP to employees shows company is investing in talent retention. 👍
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Sarah B
As an investor, I'm worried about the 37% YoY revenue decline. The company needs to explain what caused this - is it delayed government contracts or increased competition? Transparency is key in such situations.
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Vikram M
Defence sector companies often have lumpy revenues due to project-based nature. The order book looks promising. Maybe this is just a temporary blip before next big contract announcement.
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Nisha Z
The stock is still trading at nearly double its 52-week low despite recent fall. Shows investor confidence in long-term prospects. But management should address these quarterly concerns in next earnings call.

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