Zen Technologies Share Price Drops 20%; Posts 44% YoY Growth in Q3 FY25 Revenue

Zen Technologies Limited has been in focus on Monday, after the company announced its financial results for Q3 and 9M FY 2025.

On February 17, 2025, Zen Technologies share price opened at ₹1,206.00, down from its previous close of ₹1,350.00. At 11:07 AM, the share price of Zen Technologies was trading at ₹1,080.00, down by 20.00% on the NSE.

Q3 and 9M FY 2025 Financial Highlights

For Q3 FY25, the company reported a standalone revenue of ₹141.52 crore, marking a 44% year-on-year (YoY) growth. Its profit after tax (PAT) stood at ₹38.62 crore, reflecting a 22% YoY increase. The company’s EBITDA for the quarter was ₹58.69 crore, showing a 21% YoY rise.

For the nine months ending FY25, the company reported a standalone revenue of ₹637.17 crore, reflecting a 116% year-on-year growth. Its PAT stood at ₹178.03 crore, marking an 85% YoY increase. The company’s EBITDA for the period was ₹252.77 crore, showing a 76% YoY rise.

Management Commentary

Commenting on the performance for the quarter, the Chairman and Managing Director, Mr Ashok Atluri, said, “I am pleased to provide an update on our Q3FY25 performance, which demonstrates a stable performance, keeping us on track to meet our stated guidance of ₹900 crores revenues for FY25. The Union Budget 2025 demonstrates the government’s commitment to strengthening the defence sector, with a record allocation of over ₹6.81 lakh crore for the Ministry of Defence, marking a 9.53% increase from FY25. This includes a substantial ₹1.80 lakh crore earmarked under the Capital Budget of Armed Forces, providing significant tailwinds for our industry.”

He further stated that their liquidity remains strong, with ₹1,028 crores in bank balances as of December 31, 2024. Furthermore, the company completed the expansion of their assembly unit at Maheshwaram. This expansion improves their ability to scale up operations to meet growing demand.

According to the Chairman and Managing Director, the company’s order book remains strong at ₹816.91 crore as of December 2024, indicating a healthy pipeline for the upcoming quarters. Their strategic focus on securing new contracts and diversifying their portfolio ensures sustained revenue visibility and positions them for continued growth.

The company has also made strategic acquisitions in robotics, aerospace, and defence propulsion to further solidify its leadership in cutting-edge technology. These acquisitions include Vector Technics, a leader in electrical propulsion and IC engine technology for UAVs and robotics, and Bhairav Robotics, which specialises in combat robotics and autonomous systems for defence and industrial applications, said Ashok Atluri.

Additionally, the acquisition of Applied Research International (ARI) and ARI Labs strengthens their defence simulation capabilities, extending their technological reach into naval and maritime domains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.