Zen Technologies surges as Q2 net profit rises 51% YoY
The company reported a 98.8% year-on-year increase in consolidated sales to Rs 345.13 crore in Q2 FY27. Sequentially, sales surged 143.7% from Rs 141.64 crore in Q1 FY27.
EBITDA increased 65.13% year on year to Rs 148.70 crore from Rs 90.05 crore. EBITDA margin stood at 41.1% lower than 45.2% in Q2 FY26. Sequentially, EBITDA increased 156.9% from Rs 57.88 crore in Q1 FY27, while the margin improved from 36%.
Operational EBITDA rose 103.9% year on year to Rs 131.99 crore from Rs 64.74 crore. Operational EBITDA margin stood at 38.2%, compared with 37.3% a year earlier and 27.3% in the previous quarter.
Profit before exceptional items and tax stood at Rs 137.69 crore in Q2 FY27, up 183.2% vs previous quarter and 67.5% vs year-ago quarter.
Total operating expenses increased 95.85% to Rs 213.14 crore from Rs 108.83 crore in Q2 FY26. Interest costs stood at Rs 1.13 crore, while depreciation and amortisation expense increased 52.89% to Rs 8.73 crore from Rs 5.71 crore a year earlier.
The company reported an order inflow of Rs 481.81 crore during the quarter, taking its consolidated order book to Rs 1,375.70 crore as of 30 September 2026.
Consolidated net cash used in operating activities stood at Rs 302.89 crore in H1 FY27, compared with net cash generated of Rs 244.60 crore in the corresponding period last year.
Chairman and managing director Ashok Atluri said the company recorded its highest-ever consolidated quarterly revenue of Rs 345.13 crore, supported by execution capabilities and an operational EBITDA margin of 38.2%. He said Zen had started delivering Fast Track Procurement orders received last year ahead of contractual timelines. He attributed the faster execution to the company's ownership of core technology, which enables it to modify products in response to changing requirements without relying on foreign licensors.
The company said its indigenous technology capabilities position it to benefit from the growing emphasis on indigenisation in the defence sector.
Zen Technologies is a defence technology company specialising in defence training systems and anti-drone solutions. It develops systems for training and assessing the combat readiness of security forces. The company operates an R&D and manufacturing facility in Hyderabad, has filed over 235 patents and has supplied more than 1,000 training systems globally.
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