Company Overview

Zen Technologies Limited (BSE: 533339 | NSE: ZENTEC) reported its financial results and operational performance for FY 2025-26, showing a challenging year with revenue decline but maintaining strong fundamentals and strategic positioning in the defence sector.

Financial Performance

Consolidated Results:

  • Revenue from Operations: ₹687.69 crore (29.4% decrease from FY25's ₹973.64 crore)
  • Profit After Tax: ₹193.45 crore (31.0% decrease from FY25's ₹280.24 crore)
  • Earnings Per Share: ₹21.52 (down from ₹32.07 in FY25)
  • Cash and Bank Balances: ₹1,308 crore
  • Debt-free position maintained

Standalone Results:

  • Revenue from Operations: ₹42.38 crore (54.47% decrease from FY25)
  • Profit After Tax: ₹14.59 crore

Order Book & Business Outlook

  • Consolidated Order Book as of March 31, 2026: ₹1,336.04 crore
  • Q4 FY26 New Order Inflows: ₹431.36 crore
  • Majority of order book scheduled for execution from FY27
  • Approximately ₹1,000 crore expected to convert to revenue in FY27
  • Long-term guidance of 35% operational EBITDA margin and 25% PAT margin maintained
  • Expected ₹4,000 crore cumulative turnover across FY27 and FY28

Strategic Acquisitions & Investments

Completed several strategic acquisitions during FY26:

  • Majority stake acquisition in TISA Aerospace (June 2025)
  • Complete acquisition of Applied Research International Private Limited (now wholly-owned subsidiary)
  • 76% equity stake acquisition in Anawave Systems & Solutions Private Limited (November 2025)
  • 51% stake acquisition in Vector Technics Private Limited
  • Investment in Zen Technologies Inc, USA of US$10 million
  • Loss of control in AiTuring Technologies due to share dilution to 49%

Operational Highlights

  • Counter-UAS system combat-proven during Operation Sindoor, detecting up to 100 simultaneous drone threats with response time under 0.1 seconds
  • Hawkeye AI-powered multi-sensor camera with detection range increased to 15 km from 7-8 km
  • Launch of new platforms including Vrishabh unmanned ground vehicle and Hyperstrike loitering strike platform
  • Received government licence under Arms Act for manufacture of specified weapon systems
  • CMMI Maturity Level 5 and ISO/IEC 27001:2022 certifications maintained

Research & Development

  • R&D investment over last five years: ₹139.11 crore
  • 94 patents granted to date, 195 trademarks registered
  • Expanding R&D footprint with new facility at Electronic Manufacturing Cluster in Tuem, Goa
  • R&D expenses: ₹36.90 crores for FY2025-26

Corporate Governance & Leadership

Board Changes:

  • Mr. Ravi Kumar Midathala ceased as Whole Time Director
  • Dr. Ajay Kumar Singh ceased as Independent Director
  • Mr. Durga Prasad Kode appointed as Additional Director (Independent)
  • Mr. Jasthi Krishna Kishore and Ms. Uma Priyadarshini Kollareddy appointed as Independent Directors

Key Management Changes:

  • Mr. Afzal Harunbhai Malkani resigned as CFO
  • Mr. Hari Haran Chalat appointed as new CFO

Dividend & Corporate Actions

  • Board recommended final dividend of ₹1.00 per equity share (100% of face value)
  • Previous year dividend: ₹2.00 per share
  • 33rd AGM scheduled for August 29, 2026, through video conferencing
  • E-voting from August 26-28, 2026

Subsidiaries Performance

  • Unistring Tech Solutions Private Limited (51% ownership): Revenue ₹211.40 crore, PAT ₹56.01 crore
  • Applied Research International Private Limited (100% ownership): Revenue ₹131.16 crore, PAT ₹39.68 crore
  • Vector Technics Private Limited (51% ownership): Revenue ₹9.24 crore, Loss ₹4.92 crore
  • Zen Technologies Inc, USA: Net loss USD 6.39 lakhs

Regulatory & Compliance Matters

  • Secretarial audit conducted by M/s. P S Rao & Associates
  • Auditors identified revenue recognition and warranty provision assessments as key audit matters
  • Direct Tax matters under dispute: ₹387.44 lakhs
  • Indirect Tax matters (Central Excise Duty): ₹823.42 lakhs under dispute
  • Subsequent event: Fire incident at Unistring Tech Solutions with estimated loss of ₹3.37 crore (insured)

ESG & Social Initiatives

  • CSR obligation for FY26: ₹400.29 lakhs (2% of average net profit)
  • Amount spent on CSR projects: ₹130.00 lakhs
  • Scope 3 Emissions: 1,433.45 metric tonnes CO2 equivalent
  • MSME Sourcing: 79.25% of input material sourced from MSMEs/small producers
  • Domestic Sourcing: 92.46% sourced from within India

Forward Looking Statements

The company maintains positive long-term outlook despite FY26 challenges, supported by strong order book, diversified defence technology capabilities, and strategic acquisitions positioning it for growth in FY27 and beyond.