Defence stock Zen Technologies share price plunges over 17% after Q3 results

Zen Technologies share price plunged over 17% in early trade on Monday after the company reported its Q3 results. Zen Technologies shares declined as much as 17.62% to ₹1,111.30 apiece on the BSE.

The Drone manufacturing company, Zen Technologies reported a net profit of ₹38.62 crore in the third quarter of FY25, registering a growth of 22% from ₹31.67 crore in the year-ago quarter, led by higher other income. On a sequential basis, net profit declined 40.8% from ₹65.24 crore in the previous quarter.

The company’s revenue from operations in Q3FY25 increased 44% to ₹141.52 crore from ₹98.08 crore, year-on-year (YoY). The revenue dropped 41.44% from ₹241.69 crore in the September quarter.

At the operational level, earnings before interest, tax, depreciation and amortization (EBITDA) grew 21% to ₹58.69 crore from ₹48.41 crore, YoY. However, EBITDA decreased 33.18% from ₹87.84 crore, quarter-on-quarter (QoQ).

EBITDA margins weakened to 35.90% from 47.34%, YoY, while it improved from 35.12%, QoQ.

“In this quarter, we experienced a rise in profitability due to higher other income; however, we remain confident that we will achieve our EBITDA target of 35% and PAT margins of 25% by the end of the financial year. Our order book remains robust at ₹816.91 crores as of December 2024, reflecting a healthy pipeline for the coming quarters,” said Ashok Atluri, Chairman and Managing Director, Zen Technologies.

Strategic Investments

Zen Technologies on February 15 announced strategic investments in two companies Vector Technics Private Ltd and Bhairav Robotics Private Ltd.

“The investments enhance Zen’s capabilities in UAV propulsion, autonomous robotics, and aerospace components, driving self-reliance in defense manufacturing. These strategic moves also position Zen to compete globally, catering to international markets seeking cutting-edge, Indian-made defense solutions,” Zen Technologies said.

Under the terms of the agreements, Zen Technologies now holds a 51% controlling stake in Vector Technics, a leading provider of propulsion and power distribution solutions for drones and UAVs. This acquisition enables Zen to expand into aerospace components and reinforce its role in supporting global drone and robotics industries.

Zen Technologies has also acquired a 45.33% stake in Bhairav Robotics, strengthening its position in the defense robotics and autonomous systems segment.

Bhairav Robotics specializes in advanced robotic products such as quadrupedal robots and autonomous weapon systems, Zen Technologies said.

At 9:20 AM, Zen Technologies shares were trading 13.68% lower at ₹1,164.60 apiece on the BSE.

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