Zen Technologies (533339) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw consolidated revenue grow 16.8% year-over-year to INR 177.8 crores, with profit after tax up 30.6% despite order inflow timing headwinds.

• Revenue for Q3 and 9MFY26 was impacted by procurement delays due to security threats in May 2025, shifting expected revenue to future years.

• Significant acceleration in order inflows, with INR 931 crores in new orders over the last four months, most scheduled for execution in FY27.

• Major acquisitions included a 76% stake in Anawave Systems and full ownership of Applied Research International, expanding capabilities and expected to drive growth.

• Key management appointments and ESOP transfers were completed, supporting organizational stability.

Financial highlights

• Q3 consolidated revenue: INR 177.8 crores, up 16.8% year-over-year; operational EBITDA: INR 66.8 crores, up 51.1% year-over-year; margin at 37.6%.

• Q3FY26 consolidated EBITDA rose to INR 82.42 crores from INR 66.24 crores YoY; PAT increased to INR 55.7 crores; PAT margin at 31.3%.

• 9M FY26 revenue: INR 509.6 crores, down 21.4% year-over-year; operational EBITDA: INR 196.2 crores, down 16.7%; PAT: INR 170.68 crores, down 8%.

• Standalone Q3FY26 revenue was INR 116.15 crores, PAT at INR 38.62 crores; standalone net profit margin for Q3 FY26 was approximately 41%.

• Earnings per share (EPS) for Q3 FY26: Standalone INR 5.32, Consolidated INR 6.09 (basic), INR 6.61 (diluted).

Outlook and guidance

• Execution target revised to INR 4,000 crores over the next two years, with capacity expansion underway.

• Strong order book and pipeline provide robust revenue visibility for FY27 and beyond, with further order wins anticipated.

• Exports projected to contribute 20–30% of turnover by FY28, with strong interest from Middle East, Africa, and Southeast Asia.

• New product launches anticipated in the next year, focusing on cutting-edge, IP-owned solutions.