Zen Technologies Limited (ZENTEC)
Large CapIndustrials stocks · Large cap · NSE
Zen Technologies is an Indian defence company specializing in training simulation, counter-drone solutions, automated weapons stations, combat robotics, and drones. With a three-decade R&D focus, it develops products validated in real battlefields, serving the Armed Forces.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100Rev -10% YoY · PAT -40% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹142 Cr | -10.1% | -20.2% |
| EBITDA | ₹38 Cr | -40.6% | -24.0% |
| Operating margin | 27.0% | -1400 bps | -100 bps |
| PAT | ₹32 Cr | -39.6% | -31.9% |
| PAT margin | 22.5% | -1100 bps | -386 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Zen Technologies reports muted FY26 performance with significant YoY declines in revenue, EBITDA, and PAT. Q4FY26 also saw sharp YoY drops. However, the company closed FY26 with a robust consolidated order book of ₹1,336 crore, driven by strong Q4 inflows.
FY26 results were muted due to delayed order conversion, impacting revenue and profitability. Management, however, highlights a structural transformation, diversified earnings base, expanded product portfolio, and a strong forward order book, positioning the company for visible FY27 execution.
Expanded Product Portfolio
Zen ended FY26 with five capabilities: training simulation, counter-drone solutions, automated weapons stations, combat robotics, and drones.
Subsidiary Contribution
Contribution from subsidiaries to consolidated revenue and earnings validated capital allocation decisions.
New Product Development
Expects to add several new products to its portfolio in coming quarters, addressing capability gaps.
Diversified Earnings Base
Structurally more diversified earnings base positions Zen for wider opportunities.
Domestic Defence Policy
Draft Defence Acquisition Procedure 2026 and 'Buy Indian IDDM' policy intensify tailwinds.
Global Strategic Demand
Recent events underline strategic importance of layered counter-UAS systems and combat-ready forces.
Delayed Order Conversion
FY26 order conversion timing was delayed beyond expectations.
Execution Risk
Order conversion timing was delayed, impacting FY26 performance, indicating potential for future delays.
Competition & Economic Conditions
Forward-looking statements involve risks like intense competition, political instability, and general economic conditions.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company provides both Q4 YoY and FY YoY comparisons, essential for understanding annual trends in a project-based business. QoQ data is also available and crucial for assessing sequential momentum and the timing of order execution.
Revenue from Operations (FY26)
₹687.69 Cr (down from ₹973.64 Cr in FY25)
EBITDA (FY26)
₹332.66 Cr (down from ₹431.91 Cr in FY25)
Profit After Tax (FY26)
₹193.45 Cr (down from ₹280.24 Cr in FY25)
Consolidated Order Book (Mar 31, 2026)
₹1,336.04 Cr
FY26 Performance Context
FY26 financial performance was muted relative to FY25, a trajectory communicated earlier.
Structural Transformation
Zen ended FY26 as a defence company with five ready capabilities, expanding its product portfolio to actual war needs.
FY27 Outlook
FY27 execution is clearly visible, with the majority of the ₹1,336 crore order book scheduled for execution in FY27.
Future Positioning
Company believes it is entering FY27 better positioned than at any point in its recent history.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book Execution | ₹1,336.04 Cr (as of Mar 31, 2026) | Monitor the timely execution of the majority of the order book scheduled for FY27. |
| New Product Launches | Several new products expected in coming quarters. | Track the launch and market acceptance of new products addressing capability gaps. |
| Subsidiary Performance | Validated capital allocation decisions. | Assess continued and growing contribution from subsidiaries to consolidated financials. |
| EBITDA Margin Trend | FY26: 48.37%; Q4FY26: 41.38%. | Observe stabilization or improvement in EBITDA margins, particularly operational EBITDA, as execution ramps up. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +6.6% / mo · MACD −
Technical chart
ZENTECdaily · 1Y · AUTO+28.2%Daily technical trend read
NeutralTrend is undirectional — long-term uptrend intact. RSI 48.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~6.2% over last month) — short-term momentum positive.
- RSI(14) at 48 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 12% off 52W high · 47% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 10.5% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.6%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 42 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 42 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 21/25 to the score.
- Balance sheet contributes 10/15 to the score.
Main drags
- Fair-value margin of safety is negative at -127.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 2/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 47th percentile within Industrials. Main check: results consistency is weak at 5/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 47th pctile, median 68 · Large: 26th pctile, median 73
104 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.5%.
- ▸4 years of positive FCF.
- ▸Debt/equity is 0.01.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -16.8%.
- ▸1/4 latest quarters had positive YoY revenue growth.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 89.50
- P/B
- 8.62
- EV/EBITDA
- 66.47
- Market Cap
- 16265.00Cr
Profitability
- ROE
- 10.70%
- ROCE
- 16.20%
- ROA
- 9.14%
- Dividend Y
- 0.06%
Growth (CAGR)
- Revenue 5Y
- 66.00%
- EPS 5Y
- 128.00%
- Revenue 3Y
- 46.00%
- EPS 3Y
- 67.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 27.38×
- Altman Z
- 8.18
- Book Value
- 209.00
Cash Flow
- FCF Yield
- 0.51%
- FCF Positive Y
- 4/5
- OCF
- 245.00 Cr
- EPS TTM
- 19.96
Shareholding
- Promoter Hold
- 48.51%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 70%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.