Zen Technologies (533339) Q4 25/26 earnings summary

Executive summary

• Focus on anti-drone systems, simulators, and expanded defense capabilities, with significant product launches, AI integration, and structural transformation into five core defense areas.

• Subsidiaries contributed positively to consolidated revenue and earnings, validating capital allocation.

• Major new products include advanced anti-drone systems, unmanned ground vehicles, smart ammunition, and naval simulation solutions.

• Order conversion delays impacted FY26, but execution for FY27 is visible with a robust order book.

• Expanded product portfolio aligns with current defense needs, supported by favorable policy environment.

Financial highlights

• Q4 FY26 consolidated revenue: INR 178.1 crores, flat sequentially, down 45.2% year-on-year; FY26 consolidated revenue: INR 687.7 crores, down 29.4% year-on-year.

• Q4 FY26 EBITDA: INR 73.69 crores (41.38% margin); PAT: INR 31.53 crores.

• FY26 operational EBITDA: INR 247.2 crores (35.95% margin); PAT: INR 217.9 crores (31.7% margin).

• Cash and bank balances: INR 1,308 crores; group remains debt-free.

• Basic and diluted EPS (consolidated) for FY 2025-26 was Rs. 21.52, down from Rs. 32.07 in FY 2024-25.

Outlook and guidance

• Order book at INR 1,336 crores as of March 31, 2026, with ~INR 1,000 crores to be executed in FY27, mainly in Q2 and Q3.

• Revenue guidance of INR 4,000 crores cumulatively for FY27 and FY28, with strong order inflow expected.

• Margins expected to remain at 35% operational EBITDA and 25% PAT.

• Export orders and new product segments (ammunition, arms) to contribute meaningfully from FY28 onwards.

• FY27 execution is expected to be strong, with the majority of the order book scheduled for delivery.