Synopsis:
Zen Applied sciences reported a weak Q1FY26 with income and web revenue down 51% and 53% QoQ, respectively. Regardless of the drop, EBITDA margin improved to 52.17%. Administration stays assured about H1 order inflows and long-term development, supported by robust liquidity, a rising order e-book, and strategic defence-tech acquisitions.
Shares of a number one defence expertise firm witnessed a pointy intraday decline after the corporate reported a major drop in quarterly income and income. Regardless of the sharp contraction in topline and bottomline figures, buyers famous enhancements in working margins and a strong pipeline of defence orders that would help long-term development.
Zen Applied sciences Ltd, which has a market capitalization of Rs 15,242 crore, opened at Rs 1,690.70 and hit an intraday low of Rs 1,690.70, falling over 5% in comparison with its earlier shut of Rs 1,779.60. The inventory reacted negatively to the corporate’s Q1FY26 outcomes, which confirmed a steep decline in topline efficiency in comparison with each the earlier quarter and the identical interval final 12 months.
What’s the Information?
Zen Applied sciences posted a subdued Q1FY26 efficiency with a pointy decline in each income and profitability on a sequential and annual foundation. Quarter-on-Quarter Efficiency (Q1FY26 vs Q4FY25), On a sequential foundation, Zen Applied sciences’ income dropped 51.4 % to Rs 158 crore in Q1FY26 from Rs 325 crore in Q4FY25.
Working revenue fell 53.6 % from Rs 138 crore to Rs 64 crore. Revenue earlier than tax declined by 50.6 % to Rs 76 crore, whereas web revenue shrank 53.5 % to Rs 53 crore in comparison with Rs 114 crore within the earlier quarter. Nevertheless, EBITDA margin improved sharply from 50.08 % to 54.67 %, reflecting higher value management regardless of income compression.
12 months-on-12 months Efficiency (Q1FY26 vs Q1FY25), In comparison with the identical quarter final 12 months, Zen Applied sciences noticed a 38 % decline in income from Rs 255 crore to Rs 158 crore. Working revenue slipped 42.3 % from Rs 111 crore to Rs 64 crore. Revenue earlier than tax fell 30.9 %, from Rs 110 crore to Rs 76 crore. Web revenue was down 32.9 % year-on-year from Rs 79 crore to Rs 53 crore. Nonetheless, the corporate improved its EBITDA margin from 44.95 % to 54.67 %.
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Feedback from Administration
Chairman and MD Ashok Atluri acknowledged, “Regardless of this short-term moderation, our enterprise fundamentals stay robust. We’ve got efficiently maintained our EBITDA and PAT margins, reflecting robust operational self-discipline and value effectivity.” He additional added, “Our monetary place stays strong, with liquidity of ₹918 crores as of June 30, 2025, offering important flexibility to pursue rising development alternatives.”
Atluri emphasised that the corporate is assured of attaining its H1FY26 order influx steering of Rs 800 crore, with Rs 150 crore already secured and Rs 650 crore anticipated to materialize throughout the first half. He additionally highlighted the growth into UAVs and loitering munitions by means of the acquisition of TISA Aerospace as a part of its long-term technique.
Operational Highlights
Zen Applied sciences’ order e-book stood at Rs 754.56 crore as of June 30, 2025, with Rs 117.41 crore price of export orders. Throughout the quarter, it executed orders price Rs 158.22 crore and acquired new orders price Rs 64.26 crore. The corporate accomplished 4 strategic acquisitions to broaden into defence robotics, naval simulation, and UAV applied sciences, strengthening its presence throughout a number of defence verticals.
Concerning the Firm
Zen Applied sciences Restricted is a number one Indian defence expertise firm specializing in state-of-the-art coaching and anti-drone options. With over 1,000 coaching programs delivered globally and greater than 180 patents filed, Zen has a robust R&D basis backed by the Authorities of India. It operates from its Hyderabad facility and focuses on constructing indigenous options for contemporary warfare coaching.
Written by -Manan Gangwar
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