Zen Technologies Reports 53% Profit Decline in Q1 FY26

Zen Technologies has reported a significant decline in net profit for the first quarter of the financial year 2026, with earnings falling to Rs 53 crore. This figure represents a 53% drop sequentially from Rs 113 crore in the previous quarter (Q4 FY25) and a 32% decrease compared to Rs 79 crore in the same quarter last year (Q1 FY25). The company made this announcement on July 26, 2025, highlighting ongoing challenges in the defence sector.

In terms of revenue, Zen Technologies reported Rs 158 crore from operations for the quarter ending June 30, a staggering decline of over 50% from Rs 324.97 crore in the previous quarter. Year-on-year, this also reflects a drop of more than 37%, down from Rs 254 crore in Q1 FY25. The company’s total expenses for the quarter were recorded at Rs 103 crore, down from Rs 195 crore in Q4 FY25.

Future Outlook and Strategic Moves

As of June 30, 2025, Zen Technologies holds orders worth Rs 754.56 crore, according to their filing. The company has also implemented an employee stock option plan, transferring 4,260 equity shares of face value Rs 1 to eligible employees during this quarter.

In a strategic move to bolster its operations, Zen Technologies announced plans to acquire a majority stake in TISA Aerospace Pvt Ltd. The acquisition will involve purchasing a 54.7% stake for approximately Rs 6.6 crore, with the deal set to be completed through the transfer of 206,518 equity shares from existing shareholders.

Despite these developments, investor sentiment has taken a hit. On the last trading day of the week, Zen Technologies’ stock plummeted by 5%, closing at Rs 1,773.20, a decline of Rs 93. Over the past five days, the stock has fallen by more than 4%, and in the last month, it has decreased by over 6.5%. The stock’s performance has been volatile, with its 52-week high and low standing at Rs 2,627 and Rs 945.35, respectively.

As Zen Technologies navigates these financial challenges, stakeholders will be closely monitoring the company’s strategic initiatives and market performance in the coming quarters.