Zen Technologies shares rise 4.7% on record Q2 revenue and Rs 1,375.70cr order book

The investor presentation for the quarter and half year ended 30 September 2026 (Q2 and H1 FY27) shows Zen delivering its strongest quarter yet on a consolidated basis.

According to the financial summary on page 5:

• Sales (revenue from operations) in Q2 FY27 were Rs 345.13 cr, compared with Rs 173.57 cr in Q2 FY26.
• Total revenue (including other operating revenue) rose to Rs 361.84 cr from Rs 198.88 cr a year earlier.
• EBITDA came in at Rs 148.70 cr versus Rs 90.05 cr in Q2 FY26.
• Profit After Tax (adjusted for non-controlling interest) was Rs 89.54 cr, up from Rs 59.40 cr in Q2 FY26.

The Q2 highlights chart on page 3 distils this into growth rates:

• Revenue from operations of Rs 345.13 cr represented 98.8% year‑on‑year growth.
• Operational EBITDA of Rs 131.99 cr was up 103.9% year‑on‑year.
• Profit After Tax (adjusted for non‑controlling interest) of Rs 89.54 cr grew 50.7% year‑on‑year.

Importantly for the market, the filing also discloses margins. The table on page 5 shows:

• EBITDA margin at 41.1% in Q2 FY27, versus 45.2% in Q2 FY26.
• Operational EBITDA margin at 38.2% in Q2 FY27, compared with 37.3% a year earlier.

So while reported EBITDA margin moderated year‑on‑year, operational EBITDA margin – which strips out certain items – improved. That nuance helps explain why investors were willing to look through the headline margin compression and focus on the underlying operating performance.

Sequentially, the step‑up is also notable. Q1 FY27 sales were Rs 141.64 cr and EBITDA Rs 57.88 cr; Q2 FY27 more than doubled both, to Rs 345.13 cr and Rs 148.70 cr respectively. The filing does not provide quarter‑on‑quarter percentage growth, but the absolute jump in the table is clear.

For the half year, the H1 highlights on page 4 and the P&L summary on page 5 show that Zen is building on last year’s gains rather than just posting a one‑off spike:

• Revenue from operations in H1 FY27 was Rs 486.77 cr, versus Rs 331.79 cr in H1 FY26, a 46.71% year‑on‑year increase.
• Operational EBITDA for H1 FY27 was Rs 170.71 cr, up from Rs 129.45 cr in H1 FY26, reflecting 31.09% year‑on‑year growth.
• Profit After Tax (adjusted for non‑controlling interest) in H1 FY27 was Rs 124.00 cr, compared with Rs 107.15 cr in H1 FY26, a 15.73% year‑on‑year rise.

EBITDA margin for H1 FY27 stood at 39.5%, versus 46.6% in H1 FY26, while operational EBITDA margin was 35.1% compared with 39.0% a year earlier. The market appears to be weighing this margin moderation against the much larger revenue base and the strength of the order pipeline.

A key reason the stock reacted positively is the visibility embedded in Zen’s order book and the pace at which it is being executed.

The order book slide on page 6 shows:

• Order book as at 30 June 2026: Rs 1,239.02 cr.
• New orders bagged in Q2 FY27: Rs 481.81 cr.
• Orders executed in Q2 FY27: Rs 345.13 cr.
• Order book as at 30 September 2026: Rs 1,375.70 cr.

This means Zen both executed a substantial quantum of orders in the quarter and still exited with a larger backlog than it started with. The same slide breaks the closing order book into Rs 995.00 cr of equipment and Rs 380.70 cr of AMC (annual maintenance contract) orders.

The map‑style graphic on page 7 further splits the consolidated order book of Rs 1,375.70 cr into Rs 1,283.84 cr domestic and Rs 91.86 cr export. For investors, that mix underscores Zen’s leverage to India’s defence capex cycle and to the government’s push for local sourcing.

The commentary section on page 3 links the order momentum to a “supportive policy environment”. It notes that the Defence Acquisition Council has recently accorded Acceptance of Necessity to capital acquisition proposals, “of which around 82% is earmarked for sourcing from the domestic defence industry, including categories in which Zen has fielded products.”

Management emphasises that as indigenisation becomes central to defence procurement, Zen’s ownership of its core technology positions it as “a natural beneficiary of this shift.”

Chairman and Managing Director Ashok Atluri is quoted on the same page saying that Q2 FY27 marks “a defining milestone in Zen’s growth trajectory”, with the company reporting its highest‑ever consolidated quarterly revenue of Rs 345.13 cr and an operational EBITDA margin of 38.2%. He also highlights that Zen has begun delivering Fast Track Procurement orders received last year “ahead of the contractual timelines”, attributing this to the fact that “the technology is ours” and can be adapted quickly when requirements change.

For the market, that combination of policy support, a growing domestic order book and the ability to execute faster than contractual timelines strengthens the case that current revenue and profit levels may be sustainable rather than purely cyclical.

Beyond the numbers, several slides (pages 9–12) showcase Zen’s product suite across counter‑drone solutions, training systems, surveillance systems, naval and air simulation, and unmanned and robotic platforms. Examples include Anti‑Drone Systems, Loitering Munition, live and virtual simulation systems, naval simulators, ISR systems, unmanned ground vehicles and drone propulsion motors.

While the presentation does not assign revenue to each category, the breadth of offerings helps explain the diversified order inflow of Rs 481.81 cr in Q2 FY27 cited in the commentary on page 3.

The investor presentation is rich on historical financials and order book data but stops short of providing explicit revenue or profit guidance for future quarters. It also does not break out segment‑wise revenue or margins, nor does it quantify the contribution from specific programmes such as the Fast Track Procurement orders.

That leaves some uncertainty around the exact trajectory of margins, especially given the year‑on‑year decline in reported EBITDA and operational EBITDA margins for H1 FY27. However, the market’s reaction – with the stock up 4.7% and last traded at Rs 1,663 – suggests that, for now, investors are giving more weight to the surge in revenue, the 50.7% year‑on‑year jump in Q2 PAT and the Rs 1,375.70 cr order book than to the margin compression.

As always, the sustainability of this performance will hinge on how quickly Zen can convert its order book into cash flows while managing costs, and how the broader defence procurement environment evolves. The current filing lays out the building blocks, but not the full forward‑looking picture.