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Zen Technologies revenue declined by 10.5% YoY

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: Zen Technologies revenue declined by 10.5% YoY (-20.5% QoQ) to Rs 141.6 crore in Q1FY27. EBITDA margin contracted by 1356 bps YoY (-129 bps QoQ) to Rs 27.3%. Subsequently, EBITDA was down 40.2% YoY (-24.1% QoQ) to Rs 38.7 crore. PAT was down 40% YoY (-32.6% QoQ) to Rs 31.8 crore. The company has also unveiled its High-Altitude Man-Portable Anti-Drone System (MPADS), an indigenous & lightweight counter-UAS solution engineered to protect troops operating in mountainous and remote terrain.

View: Operational performance remained weak during the quarter, on account of lower execution (as the majority of the contracts were received from 2HFY26 which has led to lower revenue recognition during the last 2-3 quarters). The company has highlighted that, execution will pick-up considerably from Q2 onwards. During Q4FY26 earnings call, management guided revenue of Rs 1000 crore in FY27E (implies 45% YoY growth) and Rs 3000 crore in FY28E.   Order backlog is estimated to be at ~ Rs 1400 crore (2x TTM revenue), and gives medium-term revenue growth visibility. We believe that the anti-drone system segment (~30% of FY26 revenue and ~50% of current order backlog) would remain a key growth driver for ZTL, considering the robust demand for these modern warfare systems in both domestic and export markets

Impact: Neutral

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