Zen Technologies Reports Mixed Q2FY26 Results; Cites Order Delays But Sees Strong Anti-Drone Demand

 

Zen Technologies Reports Mixed Q2FY26 Results; Cites Order Delays But Sees Strong Anti-Drone Demand

Hyderabad, October 26, 2025 – Zen Technologies Limited (BSE: 533339, NSE: ZENTEC), a leading provider of anti-drone technology and defense training solutions, announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The results presented a mixed picture, with profits and revenues facing headwinds, while the company's operational margins and liquidity remained robust.

Financial Performance at a Glance (Consolidated, Q2FY26)

The company reported a dip in both revenue and profit compared to the same period last year, attributed to procedural delays in government orders.

• Revenue from Sales: ₹173.57 Crore (Down from ₹241.84 Crore in Q2FY25)

• Profit After Tax (Adjusted): ₹59.40 Crore (Down from ₹62.67 Crore in Q2FY25)

• Operational EBITDA: ₹65.54 Crore

• Operational EBITDA Margin: 37.76% (Improved from 33.21% in Q2FY25)

Despite the lower turnover, the company successfully maintained healthy profitability margins, indicating strong operational control and a favorable product mix.

Management Commentary: A Focus on Fundamentals and Future Growth

Mr. Ashok Atluri, Chairman and Managing Director of Zen Technologies, addressed the results, acknowledging the temporary challenges while expressing confidence in the long-term outlook.

He attributed the lower turnover to "procedural delays in order finalisations," specifically pointing to the aftermath of 'Operation Sindoor'. According to Mr. Atluri, the government's initiation of emergency procurement measures temporarily pushed back the closure timelines for certain regular Requests for Proposals (RFPs).

Crucially, he emphasized that this delay is "procedural in nature and does not impact the underlying demand or long-term revenue visibility." He confirmed that the deferred orders remain active and are expected to be released in due course.

On a highly positive note, Mr. Atluri revealed that Operation Sindoor served as a real-world validation for Zen's equipment, leading to "increased interest, particularly for its anti-drone systems."

Strong Financial Position and Subsidiary Performance

A key highlight from the announcement is the company's robust financial health. Zen Technologies reported a liquidity position of over ₹1,100 crore as of September 30, 2025, providing significant firepower for future investments and growth.

The company also noted the increasing value addition from its subsidiaries, Applied Research International Private Limited (ARIPL) and Unistring Tech Solutions (UTS), validating its strategic investment decisions.

Half-Yearly Snapshot (H1FY26)

For the first half of the fiscal year 2026, consolidated sales stood at ₹331.79 crore, with a Profit After Tax (adjusted) of ₹107.15 crore. The company continues to prioritize R&D to deepen its technological edge in the competitive defense sector.

Analyst Takeaway

The Q2 results reflect a company in a temporary holding pattern due to external procurement processes. However, strong margins, a war-chest of liquidity, validated technology post-Operation Sindoor, and growing subsidiary contributions paint a picture of a fundamentally strong company poised for a rebound once the deferred orders materialize.

---

About Zen Technologies Limited:
Zen Technologies Limited is a pioneer in providing defence training and anti-drone solutions. With an R&D-focused facility in Hyderabad, the company has applied for over 180 patents and shipped more than 1,000 training systems worldwide.

For further information, please contact:
Investor Relations: investors@zentechnologies.com
Website: https://www.zentechnologies.com

This article is based on a press release filed by Zen Technologies Limited with the stock exchanges on October 26, 2025.