Zen Technologies Ltd (BOM:533339) Q1 2027 Earnings Call Highlights:

This article first appeared on GuruFocus.

Revenue: INR141.6 crore for Q1 FY27, compared to INR178.1 crore in Q4 FY26 and INR158.2 crore in Q1 FY26.
Operational EBITDA: INR38.7 crore with a margin of 27.3% for Q1 FY27, compared to 28.6% in Q4 FY26 and 40.9% in Q1 FY26.
Profit After Tax (PAT): INR34.5 crore with a margin of 24.3% for Q1 FY27, compared to INR31.5 crore in Q4 FY26 and INR47.8 crore in Q1 FY26.
Adjusted PAT: Approximately INR37 crore with a margin of 26.1%, excluding a one-off exceptional loss of INR3.4 crore.
Gross Margin: 72.9% for Q1 FY27, consistent both sequentially and year on year.
Order Book: INR1,239 crore as of June 30, 2026, with an equipment order book of INR920.6 crore and an AMC order book of INR318.4 crore.
Working Capital Cycle: 257 days as of June 30, 2026.
Debtor Days: Stable at 122 days.
Cash and Bank Balances: Approximately INR1,217 crore as of June 30, 2026.
Debt Status: The group remains debt-free.

Release Date: July 27, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Zen Technologies Ltd (BOM:533339) reported a consolidated revenue of INR141.6 crore for Q1 FY27, aligning with expectations and maintaining delivery schedules.
The company has a strong order book of INR1,239 crore as of June 30, 2026, with a recent addition of INR177.5 crore from the Ministry of Defence.
Zen Technologies Ltd (BOM:533339) remains debt-free with a robust liquidity position, holding cash and bank balances of approximately INR1,217 crore.
The company is expanding its market reach, targeting North American and EU markets, and has identified a $10 billion addressable market in the US for its products.
Zen Technologies Ltd (BOM:533339) is actively pursuing acquisitions to enhance its capabilities and revenue potential, with a focus on cutting-edge technologies.

The company’s Q1 FY27 revenue decreased compared to both Q4 FY26 and Q1 FY26, reflecting a challenging start to the fiscal year.
Operational EBITDA margin declined to 27.3% from 40.9% in Q1 FY26, impacted by negative operating leverage and fixed cost absorption.
A one-off exceptional loss of INR3.4 crore due to a fire incident affected the profit after tax for the quarter.
The working capital cycle increased to 257 days, driven by a buildup in advance to suppliers and inventory.
The company faces demand-related challenges, with no recent tenders for anti-drone systems and simulators, affecting order flow.