Zen Technologies (533339) Q4 24/25 earnings summary

Executive summary

• Achieved record annual and quarterly performance in FY25, with consolidated revenue up 121% year-over-year to ₹973.64 crores and net profit more than doubling to ₹280.24 crores, driven by robust export sales, domestic demand, and major defence orders.

• Significant contributions from subsidiaries, especially UTS (anti-drone), ARI (naval simulation), and new acquisitions in robotics and AI, with ongoing integration of new product lines and technologies.

• Liquidity remains robust at approximately ₹1,037 crores, supporting growth, strategic investments, and R&D expansion.

• Company remains a leader in indigenously designed, developed, and manufactured anti-drone systems, with proven operational effectiveness and unique technological capabilities.

• Board recommended a final dividend of ₹2 per share, subject to shareholder approval.

Financial highlights

• FY25 consolidated revenue grew 121% year-over-year to ₹973.64 crores; standalone revenue up 116% to ₹930.67 crores.

• FY25 consolidated PAT rose 119% to ₹280.24 crores; standalone PAT up 103% to ₹262.95 crores.

• Q4FY25 consolidated revenue increased 130% year-over-year to ₹324.97 crores; PAT up 189% to ₹101.05 crores.

• EBITDA margins remained strong at 44.36% (consolidated) and 39.92% (standalone) for FY25.

• Cash balance stands at ₹1,037 crores, including QIP proceeds and internal accruals.

Outlook and guidance

• FY2026 expected to be muted due to timing of order execution, with significant order inflow anticipated by end of H1 but revenue recognition likely spilling into FY2027.

• Medium-term guidance remains aggressive: cumulative turnover of over ₹6,000 crores projected for FY2026–FY2028, with 50% CAGR targeted.

• Margins expected to remain stable; company confident in maintaining 25% PAT and 35% EBITDA margins.

• Expansion into North America and new acquisitions are expected to drive further growth.

• Plans to expand R&D center with an investment of nearly ₹70 crores to accelerate product development.