Zen Technologies Reports 92% YoY Revenue Growth in Q1 FY25

Zen Technologies announced its unaudited financial results for the quarter ended June 30, 2024.

Standalone Financial Highlights Q1FY25

In Q1 FY 2025, the company’s revenue grew 92% YoY to ₹253.96 crore. The operational EBITDA for the quarter stood at ₹103.20 crore, which is 56% higher than the EBITDA compared to the same period last year. Zen Technologies reported Profit After Tax (PAT) of ₹74.18 crore with 57% YoY growth.

Commenting on the financial performance, the Chairman and Managing Director, Mr Ashok Atluri, said, “I am pleased to share that Zen Technologies Limited has had an exceptionally strong start to FY25. Our revenue from operations for Q1FY25 came in at ₹253.96 crores, recording a robust growth from ₹132.45 crores in Q1FY24. This impressive growth is mirrored in our Operational EBITDA, which reached ₹103.20 crores, and our net profit of ₹74.18 crores, recording a growth of 56% and 57% year-on-year, respectively.”

He further added, “Our cornerstone remains in training and simulation, including technical training equipment like virtual simulators and live ranges. In the last few years, the armed forces have recognised the increasing need for tactical training, preparing soldiers for actual combat scenarios. This shift is expected to drive significant growth for our company. Furthermore, the surge in interest post-Ukraine war highlights the importance of competent training over merely acquiring advanced equipment.”

Mr Ashok also stated that their early investment in counter-drone systems since 2018 has positioned them at the forefront of this critical technology. With the Government of India’s focus on the Buy Indian IDDM category, they are well-placed to be the preferred supplier for the Indian Armed Forces.

The company’s MD also said that it remains an IP powerhouse, with over 155 global patents filed and about 75 granted. Their extensive library of software, electronic, and mechanical modules, developed over the last 30 years, enables rapid product realisation. This has allowed them to introduce innovative products like the Hawkeye anti-drone system, Barbarik URCWS, Prahasta automated quadruped, and Sthir Stab 640 stabilised sight, which are set to open new revenue streams.

Their operational model, which leverages in-house R&D and outsourced production, has enabled significant scalability with minimal capital expenditure, providing good operating leverage to their business. They are expanding their assembly and integration capabilities to support this growth.

“Additionally, we are experiencing strong regulatory tailwinds, including increased utilisation of simulators by the armed forces and aggressive export targets set by the government. Our strong balance sheet and ongoing investment in R&D ensure we remain at the cutting edge of technology, ready to meet evolving customer needs. We are excited about the future and confident in meeting our guidance of ₹900 crores of turnover in the current financial year,” said, Mr Ashok Atluri.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.