Zen Technologies Q2 Results: Net Profit Grows 64.6% YoY to ₹102 Crore

Key numbers

Market Cap	₹14,341.73 CrAerospace & Defence
PE Ratio	79.61xSector PE: 51.5x
1-Year Return	16.61%Price Performance
RSI	46.54Neutral Zone

Key highlights

• Consolidated revenue from operations increased to ₹345 crore, up 98% from ₹174 crore in the year-ago period
• Net profit for the quarter reached ₹102 crore, representing a sequential growth of 220.4%
• Operating margin stood at 38.1% for the quarter, compared to 28.2% in the preceding quarter
• Consolidated order book on hand reached ₹1,375.70 crore as of September 30, 2026
• Board approved the acquisition of 51.98% equity in Cogknit Semantics for ₹135.15 crore
• Company initiated voluntary strike-off of non-material subsidiary Zen Medical Technologies
• Promoter holding remains steady at 48.51% with zero percentage of shares pledged

Consolidated Revenue Surges 143% Sequentially

Zen Technologies Limited reported a significant expansion in its top-line performance for the quarter ended September 30, 2026. Revenue from operations stood at ₹345 crore, representing a 143% sequential increase from the ₹142 crore reported in the preceding June quarter. On a year-on-year basis, revenue grew by 98% from ₹174 crore in Q2 FY26.

This growth trajectory was supported by a robust consolidated order book, which management confirmed reached ₹1,375.70 crore at the end of the period. While the operating margin of 38.1% was lower than the 41.8% recorded in the same period last year, it improved significantly from the 28.2% seen in Q1 FY27.

Strategic Acquisitions and Subsidiary Restructuring

The company has actively managed its portfolio through strategic acquisitions and restructuring during the half-year ended September 2026. Post-quarter end on October 17, 2026, the Board approved the acquisition of a 51.98% stake in Cogknit Semantics Private Limited for a total consideration of ₹135.15 crore. Simultaneously, the company initiated the voluntary strike-off of its non-material wholly owned subsidiary, Zen Medical Technologies Private Limited.

As of March 31, 2026, this subsidiary had a net worth of ₹37.97 lakh, contributing only 0.02% to the consolidated net worth. These moves align with the group's focus on its core Defence and Homeland security segments.

Operational Developments and Contingencies

• A fire incident at subsidiary Unistring Tech Solutions on October 18, 2026, caused a preliminary estimated loss of ₹4 crore.
• The damaged assets are covered under insurance, and claims have been intimated to the respective insurers.
• Management treated the fire incident as a non-adjusting event for the Q2 FY27 consolidated financial results.
• The Group transferred 6,440 equity shares to eligible employees under the ESOP Plan-2021 during the quarter.
• The Zen Technologies Employees Welfare Trust purchased 58,189 equity shares from the secondary market for ₹9.59 crore.
• Consolidated debt-to-equity ratio remains healthy as total equity increased to ₹2,057.94 crore from ₹1,949.08 crore in March 2026.

Consolidated Order Book Status

The value of the orders on hand for the Group as at 30 September 2026, is Rs.1,375.70 Crores.

What to watch next

• Completion of the acquisition of 51.98% stake in Cogknit Semantics Private Limited
• Surveyor assessment and final insurance claim settlement for the Unistring Tech fire incident
• Execution of the ₹1,375.70 crore order book over the remaining quarters of FY27
• Final regulatory approval for the voluntary strike-off of Zen Medical Technologies

Zen Technologies · financial snapshot

Share price	₹1588.4
Market capitalisation	₹14,341.73 Cr
Revenue (annual)	₹687.69 Cr
Net profit (annual)	₹193.45 Cr
Revenue (latest quarter)	₹141.64 Cr-20.46% vs previous quarter
Net profit (latest quarter)	₹34.46 Cr+9.29% vs previous quarter
P/E (TTM)	79.61×Sector 51.5×
Promoter holding	48.51%0.00% QoQ
FII holding	6.6%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.