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Zen Technologies (533339) investor relations material

Zen Technologies Q2 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 25/26 earnings summary27 Oct, 2025

Executive summary

  • Q2 and H1 FY2026 results were impacted by delayed government orders and procedural delays, but operational EBITDA margins remained strong, and liquidity was robust with over INR 1,100 crore as of September 30, 2025.

  • Management expects delayed orders to materialize, with a strong order pipeline and significant execution ramp-up in H2 FY2026 and FY2027-28.

  • Strategic focus remains on simulators and anti-drone systems, with recent acquisitions and subsidiary contributions strengthening capabilities and market reach.

  • Increased interest in anti-drone systems followed real-world validation during Operation Sindhur.

  • Standalone and consolidated unaudited financial results for Q2 and H1 FY2026 were approved on October 25, 2025, with significant order books at both levels.

Financial highlights

  • Standalone Q2 FY2026 revenue was INR 124.65 crore, down from INR 241.69 crore YoY; consolidated Q2 FY2026 revenue was INR 173.57 crore, down from INR 241.84 crore YoY.

  • Standalone operational EBITDA for Q2 FY2026 was INR 42.10 crore (34% margin); consolidated Q2 FY2026 EBITDA was INR 90.05 crore (51.88% margin).

  • Standalone PAT for Q2 FY2026 was INR 46.16 crore (37% margin); consolidated PAT was INR 59.40 crore (34% margin).

  • H1 FY2026 consolidated revenue was INR 331.79 crore, down from INR 496.46 crore YoY; H1 FY2026 consolidated PAT was INR 107.15 crore, down from INR 139.48 crore YoY.

  • Net cash position as of September 30, 2025, was INR 1,103 crore, with the company remaining debt-free.

Outlook and guidance

  • Management expects significant order inflow in H2 FY2026, with execution ramping up in FY2027 and FY2028.

  • Cumulative revenue guidance of INR 6,000 crore is expected to be achieved by FY2028, with no anticipated spillover to FY2029.

  • Product mix for the INR 6,000 crore guidance is expected to be roughly 50/50 between simulators and anti-drone systems.

  • Export markets, especially Africa, Middle East, CIS, and Southeast Asia, are expected to contribute meaningfully in H2 FY2026 and beyond.

  • Continued focus on R&D and innovation to drive future growth.

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