Zen Technologies shares fall 10% in 2 days; what should you do?

The defence equipment manufacturer's net profit for the quarter ended June 30, 2025, stood at ₹47.75 crore, down by 38 per cent from ₹76.81 crore recorded in Q1FY25

Zen Technologies share price today: Shares of defence equipment manufacturer, Zen Technologies, hit its second lower circuit on Tuesday, July 29, 2025, logging an intraday low of ₹1,606.20.

Zen Technologies' shares extended their decline for the second consecutive day after the defence company's Q1FY26 results dampened investor sentiment. The total market capitalisation of the company stood at ₹14,502.44 crore. Shares of Zen Technologies are currently trading at ₹1,606.20, down by 38.8 per cent from their 52-week high of ₹2,627.

Zen Technologies Q1FY26 earnings

The defence equipment manufacturer's net profit for the quarter ended June 30, 2025, stood at ₹47.75 crore, down by 38 per cent from ₹76.81 crore recorded in the corresponding period of the previous fiscal year. Consolidated revenue from operations figure for the quarter under review stood at ₹158.2 crore, as against ₹254.6 crore reported in the first quarter of the last financial year. The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) declined from ₹111.35 crore in Q1FY25 to ₹64.7 crore in Q1FY26, marking a decline of 41 per cent.

 

The decline in topline growth was mainly due to a one-off deferral of an order worth ₹60-70 crore to the second quarter, following last-minute changes required by customers.

Zen Technologies' total order book as of June 30, 2025, stood at ₹754.56 crore. During the quarter under review, the company bagged new orders worth ₹64.26 crore. Ebitda margins, for the quarter, also experienced a decline, and stood at 40.9 per cent.

"Our Q1FY26 results reflect moderation in topline growth, we believe this is a temporary adjustment phase with a much stronger long term growth trajectory. Despite this temporary moderation, our business fundamentals remain strong," said Ashok Atluri, chairman and managing director, Zen Technologies.

"Looking ahead to H1FY26, we remain confident in achieving our order inflow guidance of ₹800 crores. Out of which we have secured orders amounting to ₹150 crores till date, with the remaining ₹650 crores expected to materialise within the first half," he added.  Check List of Q1 results today

Brokerage view- Elara Securities

According to Elara Securities, Zen Technologies might face lower order inflows in FY26E, which might eventually impact execution during the current financial year and FY27.

The brokerage firm has maintained a 'Buy' rating on the stock, with a lower target price of ₹2,225. It has also slashed FY26E earnings per share (EPS) estimates by 23 per cent. However, the recent border conflict between India and Pakistan might push demand both at home and at the global front.

"We reiterate Buy as successful demonstration of Zen’s equipment in the recent India-Pakistan conflict should drive demand on domestic and exports fronts, along with robust performance by subsidiaries on inflows and sales front. We expect an earnings compound annual growth rate (CAGR) of 26 per cent in FY25-28E with an average ROE and ROCE of 19 per cent each through FY26E-28E," Elara Securities stated in its report. 

Brokerage view-  ICICI Securities

Over the past 2-3 quarters, the defence company has made significant investments in various acquisitions, including Vector Technics, Applied Research International (ARIPL) and Bhairav Robotics.

Analysts at ICICI Securities believe that these acquisitions will give a boost to the company's overall margin levels. "Zen’s recent acquisitions are likely to remain margin accretive and improve its products offering. That said, we believe, order accretion shall be closely monitored by Street. Taking cognizance of the Q1FY26 performance and management guidance, we reduce our FY26/FY27 estimates by 30 per cent/22 per cent," the brokerage firm stated in its report.

ICICI Securities has downgraded the stock to 'Hold' from 'Buy' with a revised target price of ₹1,700 per share.