Zen Technologies Limited – Investor Presentation Summary

Key Operational Highlights

  • Consolidated order book of ₹1,239.02 crore as at 30 June 2026
  • Received additional simulator order of ₹177.50 crore in July 2026 for upgradation and integration of Tank and Crew Gunnery Simulators
  • Typical execution cycle of orders is around twelve months, with revenue weighted towards Q2 FY27 and Q3 FY27
  • New products introduced: AI-powered anti-drone system, Hyperstrike interceptor drone, Zen Vrishab unmanned ground vehicle, Integrated Smart Border Suite

Key drivers of operational performance: Early stage of current order book execution cycle, substantial order book improvement secured from October 2025, new product introductions in anti-drone systems

Segment-wise Performance

  • Training Solutions: Leader in Army and Navy domains, completed R&D for first product offering to Air Force
  • Drone & Counter-Drone Solutions: Anti Drone System, Loitering Munition
  • Operational Equipment: Force Multipliers, ISR systems
  • Virtual Simulation: Combat Training Centre
  • Naval Simulation: Marine Solutions, Naval Solutions, Tank Targets, DSRV (Deep Sea Rescue Vehicle), Submarine Navigation Simulator
  • Air simulators: Entry planned through OEM partnerships
  • Vector Technics: Drone propulsion technologies

Explanation of significant changes in segment performance: Company expanding from traditional training solutions into broader defence technology including anti-drone systems and unmanned platforms

Financial Highlights

  • Revenue: ₹141.64 crore (Q1FY27)
  • Other Income: ₹19.16 crore (Q1FY27)
  • Total Revenue: ₹160.79 crore (Q1FY27)
  • Total Operating Expenses: ₹102.91 crore (Q1FY27)
  • EBITDA: ₹57.88 crore (Q1FY27)
  • EBITDA Margins: 40.9% (Q1FY27)
  • Operational EBITDA: ₹38.72 crore (Q1FY27)
  • Operational EBITDA Margins: 27.3% (Q1FY27)
  • Interest Cost: ₹1.09 crore (Q1FY27)
  • Depreciation: ₹7.86 crore (Q1FY27)
  • Profit Before Associates, Exceptional Items and Tax: ₹48.93 crore (Q1FY27)
  • Profit After Tax (Adjusted for Non-Controlling Interest): ₹34.46 crore (Q1FY27)

YoY/QoQ comparison:

  • Q1FY27 Sales: ₹141.64 crore vs Q1FY26: ₹158.22 crore vs Q4FY26: ₹178.08 crore
  • Q1FY27 EBITDA: ₹57.88 crore vs Q1FY26: ₹86.49 crore vs Q4FY26: ₹73.69 crore
  • Q1FY27 EBITDA Margins: 40.9% vs Q1FY26: 54.7% vs Q4FY26: 41.4%
  • Q1FY27 PAT: ₹34.46 crore vs Q1FY26: ₹47.75 crore vs Q4FY26: ₹31.53 crore

Drivers of financial performance: Revenue consistency with expectations reflecting early stage of order execution cycle, expected revenue weighted towards subsequent quarters

Key Risks: Not explicitly disclosed in presentation

Geographical Revenue Split

  • Domestic vs Export/Regional Revenue: Not specified

Balance Sheet Snapshot

  • Net Debt/Equity: Not specified
  • Reserves: Not specified
  • Current Assets/Liabilities: Not specified
  • Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Not specified

Capex & Cash Flow Health

  • Capital Expenditure: Not specified
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Not specified

Investment Rationale: Not specified

Strategic & R&D Initiatives

  • Investments in Innovation: AI-powered anti-drone system, Hyperstrike interceptor drone, Zen Vrishab unmanned ground vehicle, Integrated Smart Border Suite
  • R&D completed for first product offering to Air Force
  • Negotiations with OEMs at advanced stage for air simulator domain entry

Expected impact on growth: Entry into air simulator domain through OEM partnerships expected to be formalized during the course of the year

Strategic Rationale: Providing training solutions across all three services (Army, Navy, Air Force), expanding product suite in anti-drone and defence training solutions

Industry Trends & Business Environment

  • Macro/Industry Trends: Government's sustained prioritisation of counter-drone systems, layered air defence and unmanned platforms
  • Defence Acquisition Council (DAC) clearances over past months supporting procurement environment
  • Continued emphasis on Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured)

Impact on Company: Reinforces relevance of company's portfolio, creates opportunities for order conversion with broadened product suite

Management Commentary & Growth Outlook

  • Strategic Outlook: "We entered FY27 with clear visibility on execution"
  • "We remain on track with our delivery schedules"
  • "With a materially broadened product suite and a strong order pipeline, we are well placed to convert the opportunities ahead of us as the year progresses"
  • FY Guidance: Not explicitly provided
  • Market Share Targets: Company states it is "today the leader in the Army and Navy domains"

Risks and Opportunities: Procurement environment continues to be positive, sustained government prioritisation of sectors in which Zen operates