Zen Technologies Ltd. shares fell nearly 8% in early trade on Monday after the defence technology company reported weak first-quarter earnings for FY27, weighed down by lower revenue and a sharp drop in margins.
The stock fell to Rs 1,676 on the NSE from its previous close of Rs 1,768.7 as of around 9:26 am, even as the benchmark Nifty 50 gained about 0.7%.
Investors are now closely watching the company's order book and management's outlook for the rest of the financial year amid the disappointing quarterly performance.
Q1 Results at a Glance
Revenue from operations declined 10.5% year-on-year to Rs 142 crore in the June quarter, compared with Rs 158 crore in the corresponding period last year.
Zen Technologies' operating performance weakened during the quarter, with Ebitda falling 38.8% to Rs 38.7 crore from Rs 63.3 crore in the year-ago period.
Also Read: India Strengthening Defence, Space Capabilities: PM Modi In 'Mann Ki Baat'
The Ebitda margin contracted sharply to 27.3% from 40% a year earlier, indicating increased pressure on profitability even as revenue declined at a relatively slower pace.
Net profit fell 27.8% to Rs 34.5 crore from Rs 47.8 crore in the corresponding quarter last fiscal, but it also included a one-time loss of Rs 3.4 crore during the quarter.
QIP Fund Utilisation Timeline Extended
Separately, Zen Technologies' board approved a two-year extension for the utilisation of funds raised through its qualified institutional placement (QIP).
The company had raised the funds in August 2024 and has been regularly disclosing the status of their utilisation through monitoring and deviation reports filed with the exchanges.
Share Price Performance
Despite the recent fall, the stock has gained 24.19% since the beginning of 2026.
The stock is trading at a price-to-earnings ratio of 80.32 times and has a market cap of Rs 15,155 crore as of the end of the previous trading session.
Also Read: ZEN Technologies Q1 Results Today: Time, Dividend, Earnings Call Schedule, Share Price
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