Zen Technologies Reports Q1FY26 Profit Drop, Expands UAV Portfolio

Zen Technologies Limited reported a significant decline in net profit and revenue for the first quarter of fiscal year 2026, with net profit falling between 38% and 53% year-on-year and sequentially, and revenue decreasing by over 37% year-on-year. Despite the moderation in topline growth, the company maintained operational discipline with strong EBITDA and PAT margins, although EBITDA margin contracted by around 208 basis points. Zen Technologies has a consolidated order book of approximately ₹754 crores and strong liquidity of ₹918 crores, supporting confidence in its order inflow guidance of ₹800 crores for the first half of FY26. The company expanded into the UAV and loitering munitions segment through acquiring a 54.7% stake in TISA Aerospace Pvt Ltd, aligning its portfolio with evolving defense sector demands. CEO Ashok Atluri anticipates margin improvement and reduced working capital days in the near future. However, the company's shares experienced a decline following the earnings announcement, reflecting market reaction to the earnings drop.