Zen Tech zooms up on solid Q1 results, management confident of FY25 guidance

The armed forces have stepped up on the requirment of tactical training for soldiers in actual combat scenarios in recent years.

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26 Aug, 2025 12:21

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Shares of defence supplier Zen Technologies are locked at upper circuit, higher by 5 percent, as increasing orders for products in anti-drone warfare and simulators pushed the topline higher by 92 percent on year to Rs 254 crore for the June quarter. The net profit came in at Rs 74.18 crore, rising by 92 percent compared to last year.

"We are excited about the future and confident in meeting our guidance of Rs 900 crores of turnover in the current financial year", said Ashok Atluri, the Chairman and managing director.

The total orderbook stands at Rs 1158.54 crore, largely consisting of training simulators and anti-drone systems, the company said. Zen Tech's R&D spend stands at Rs 6.99 crore in Q1FY25. The management said it is looking to position the business model to 'reduce lumpiness and enhance profitability in the coming years'.

The Operational EBITDA came in at Rs 103.20 crore compared to Rs 66.17 crore a year ago.

The armed forces have stepped up on the requirement of tactical training for soldiers in actual combat scenarios in recent years. Zen Tech said this shift is expected to drive 'significant growth' for our company. There has been an increasing interest in competent training after the onset of the Ukraine war, Zen Tech added.

The company had recently launched four new products - Hawkeye anti-drone system, Barbarik URCWS, Prahasta quadruped, and Sthir Stab 640 stabilised sight - which the company says 'are set to open new revenue streams'.

Zen Tech is now evaluating tie ups with OEMs and scouting for acquisition target that can be a strategic fit.

Zen Tech's simulators are increasingly being utilized by the armed forces and the ambitious defence export targets by the government too are expected to benefit Zen Tech, the CMD said.

Shares of Zen Tech ended Friday locked up on upper circuit at Rs 1532, and are higher by 94 percent so far this year. Compared to a year ago, the shares are higher by 145 percent.