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Zen Technologies Ltd.
NSE: ZENTECIndustrialsAerospace & Defense
- Last close
- ₹1,493.80
- Day change
- −₹68.40 (−4.38%)vs
- Market cap
- ₹14,891 crIndian rupees
- Research updated
- 2 reports
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About Zen Technologies
Zen Technologies Ltd. is a prominent entity in the field of defense and training simulation technologies. The company's core functions revolve around designing, developing, and manufacturing state-of-the-art training simulators for various defense and security forces globally. It provides an array of products that include land-based military training simulators and anti-drone systems, reflecting its strong emphasis on securing modern-day battlefields and enhancing tactical preparations. Zen Technologies Ltd. plays a critical role in sectors such as national defense, homeland security, and civilian security applications, offering comprehensive solutions that support both safety and tactical superiority. Given its innovative approach, the company significantly contributes to technological advancements in military training, particularly in simulation technology. Situated in Hyderabad, India, Zen Technologies Ltd. holds a strategic position in the defense market, catering to a wide array of governmental and non-governmental agencies worldwide. Its continuous commitment to research and development underscores its integral role in fortifying defense strategies and training methodologies, thereby maintaining its stature as a key player within the global defense technology industry.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- Listing
- NSE: ZENTEC
- Next results
- Employees
- 421
- Headquarters
- Hyderabad, India
- ISIN
- INE251B01027
- Website
- zentechnologies.com
Public research · Report of
Business model & financial foundation
Zen Technologies (NSE: ZENTEC), Defence training simulation and counter-drone systems: revenue of ₹687.7 crore in FY26 (-29.4% on FY25), an EBITDA margin of 36.0% and net profit of ₹193.5 crore.
- Revenue, FY26 (₹ crore)
- 687.7
- consolidated
- Revenue growth, FY26
- -29.4%
- on FY25
- EBITDA margin, FY26
- 36.0%
- EBITDA (Operating EBITDA excluding other income) / revenue
- Net profit, FY26 (₹ crore)
- 193.5
- to owners
- Return on equity, FY26
- 10.5%
- on average equity
- Market capitalisation (₹ crore)
- 14,891
- at the close of 17 Oct 2026
Company profile
Zen develops indigenous defence training simulators, counter-drone systems and related electronic and robotic platforms, earning equipment revenue upon delivery and acceptance and recurring annual maintenance revenue. UTS and ARI broaden its electronics and naval simulation offering; early-stage robotics and propulsion expansion do not establish contracted demand. Government procurement, trial and acceptance schedules make execution lumpy and working capital intensive.
| Item | Value |
|---|---|
| Legal name | Zen Technologies Limited |
| Exchange and ticker | NSE: ZENTEC; BSE: 533339 |
| ISIN | INE251B01027 |
| CIN | L72200TG1993PLC015939 |
| Sector | Industrials |
| Industry | Defence training simulation and counter-drone systems |
| Headquarters | Hyderabad, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | Ramasamy Koteswara Rao and Co LLP |
| Market capitalisation | ₹14,891 crore (17 Oct 2026) |
| Shares outstanding | 9.03 crore shares (FY26) |
| Price | ₹1,656 (close, 17 Oct 2026) |
| 52-week range | ₹1,223 - ₹2,044 (to 17 Oct 2026) |
| Website | https://www.zentechnologies.com |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| Unistring Tech Solutions | 51% | Defence electronics and counter-drone systems |
| Applied Research International | 100% | Naval simulation and training |
| ARI Labs | 100% | Simulation research |
| Vector Technics | 51% | Drone propulsion systems |
| TISA Aerospace | 76% | Aerospace systems |
| Anawave Systems and Solutions | 76% | Defence systems |
| Zen Technologies Inc USA | 100% | US market development |
| Zen Medical Technologies | 100% | Medical technologies |
| Zen Defence LLC UAE | 99% | Overseas defence market development |
AiTuring 49% and Bhairav Robotics 45.33% are associates, not revenue-consolidated subsidiaries. ARI step-down UK cessation and KIC JV ownership are unresolved; AR ownership preferred to rating-agency descriptions.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 48.51% | 48.51% | 48.51% | |
| Promoter holding pledged | 0.00% | |||
| Foreign institutions | 5.55% | 5.99% | 6.46% | |
| Domestic institutions | 7.86% | 10.07% | 10.41% | |
| of which mutual funds | 5.05% | 6.72% | 7.55% | |
| Retail | 30.91% | 28.69% | 27.84% | |
| Other | 7.17% | 6.74% | 6.77% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Zen sells indigenous defence simulators, counter-drone and electronic systems, with equipment revenue recognised through delivery and acceptance and an AMC component. Government procurement, order execution and working capital are more immediate value drivers than aggregate defence spending. Zen’s Board approved a conditional controlling acquisition of Cogknit Semantics on 17 Oct 2026; Cogknit develops AI-enabled battlefield-management systems. The announced stake is 51.98% on a fully diluted basis for maximum cash consideration of INR135.15cr, expected to close by 13 Dec 2026 subject to conditions precedent. Cogknit FY26 turnover was disclosed as INR0.48cr, so no contribution is credited before purchase accounting and operating disclosure.
| Peer | Why the dossier compares them |
|---|---|
| Data Patterns (DATAPATTNS) | Defence electronics, radar and simulator overlap; product-level closest listed peer. |
| Paras Defence (PARAS) | Defence optics and air-defence technology; adjacent counter-drone capabilities. |
| Astra Microwave (ASTRAMICRO) | RF and microwave defence subsystems; different integration scope. |
| ideaForge Technology (IDEAFORGE) | Drone supplier; adjacent technology but distinct civil exposure and profitability. |
| Bharat Electronics (BEL) | Large electronic defence integrator and counter-drone competitor; scale and state ownership differ. |
| Hindustan Aeronautics (HAL) | Defence procurement and maintenance comparator, not product-equivalent. |
| Bharat Dynamics (BDL) | Procurement-cycle and order-execution comparator; missiles not simulators. |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 69.8 | 218.9 | 439.9 | 973.6 | 687.7 |
| Cost of revenue (vendor classification) * | 17.2 | 66.2 | 128.7 | 384.7 | 211.7 |
| Other operating costs (vendor classification) * | 30.3 | 42.1 | 66.1 | 183.3 | 97.4 |
| EBITDA (vendor classification) * | 9.05 | 78.5 | 197.3 | 431.9 | 328.8 |
| Operating EBIT excluding other income | 3.78 | 74.4 | 171.1 | 358.1 | 222.9 |
| Finance costs | 0.48 | 2.68 | 2.28 | 10.4 | 10.3 |
| Profit before tax after associates and exceptional | 3.30 | 71.7 | 186.2 | 406.1 | 296.6 |
| Total current prior and deferred tax | 0.69 | 21.8 | 56.6 | 106.7 | 78.7 |
| Group profit after tax before NCI allocation | 2.61 | 50.0 | 129.5 | 299.3 | 217.9 |
| Diluted EPS (₹) | 0.25 | 5.20 | 15.34 | 32.07 | 21.52 |
| Materials consumed and inventory change | 118.0 | 369.0 | 165.5 | ||
| Employee benefits expense | 59.1 | 88.8 | 126.9 | ||
| Manufacturing and other expenses | 82.0 | 142.4 | 148.0 | ||
| Operating EBITDA excluding other income | 180.8 | 373.5 | 247.2 | ||
| Company PBIDT including other income | 195.7 | 431.9 | 332.7 | ||
| Other income | 14.9 | 58.4 | 85.4 | ||
| Depreciation and amortisation | 9.68 | 15.4 | 24.4 | ||
| Exceptional items signed addition | 2.41 | 0.00 | 0.94 | ||
| Share of associates and JV signed | 0.00 | -0.05 | -2.31 | ||
| Profit attributable to non-controlling interests | 1.62 | 19.1 | 24.5 | ||
| PAT attributable to equity holders of parent | 127.9 | 280.2 | 193.5 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total consolidated equity including NCI | 289.9 | 330.3 | 466.3 | 1,736 | 1,949 |
| Gross debt including lease liabilities | 14.8 | 6.75 | 6.03 | 77.7 | 18.5 |
| Cash and cash equivalents unrestricted | 21.1 | 110.3 | 36.7 | 74.2 | 78.9 |
| Trade receivables net of expected credit losses | 31.7 | 85.4 | 184.5 | 410.4 | 224.0 |
| Inventories | 25.0 | 49.0 | 169.1 | 119.3 | 188.2 |
| Total trade payables | 3.93 | 6.73 | 32.1 | 25.5 | 49.3 |
| Net property plant and equipment excluding ROU and CWIP | 7.40 | 17.4 | 80.7 | 106.4 | 136.9 |
| Capital work in progress | 2.52 | 1.92 | 10.1 | 3.55 | 13.3 |
| Total assets | 369.0 | 473.7 | 750.5 | 2,049 | 2,160 |
| Equity attributable to parent owners | 448.6 | 1,701 | 1,889 | ||
| Current and noncurrent borrowings excluding leases | 0.62 | 54.2 | 3.38 | ||
| Current and noncurrent lease liabilities | 5.42 | 23.6 | 15.1 | ||
| Net debt on verified unrestricted liquidity perimeter | n.r. | n.r. | n.r. |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities | -49.6 | 122.8 | 13.4 | 31.0 | 244.6 |
| Free cash flow (vendor definition) * | -48.6 | 103.2 | -16.7 | -1.27 | 182.8 |
| Dividends paid (the provider's sign: an outflow is negative) * | -0.80 | -0.79 | -1.67 | -8.98 | -18.0 |
| Cash PPE CWIP and capital advances outflow negative | -4.31 | -13.1 | -30.1 | -32.3 | -61.4 |
| Cash purchases of PPE and CWIP negative | -29.8 | -32.3 | -58.8 | ||
| Cash capital advances negative | -0.35 | 0.00 | -2.57 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Issued fully paid shares at year end not weighted average | 7.95 | 7.92 | 8.40 | 9.03 | 9.03 |
| Conditional liquidity assuming ordinary FDs unrestricted | 112.7 | 1,058 | 1,106 | ||
| Conditional debt net ordinary FDs assuming unrestricted | -106.7 | -980.3 | -1,087 | ||
| Restricted bank guarantee margin deposits | 67.5 | 121.0 | 199.5 | ||
| FY24-FY26 cumulative CFO / group PAT (x) | 0.45x | ||||
| Closing receivables / annual revenue x365 (days) | 153 | 154 | 119 | ||
| Receivables growth less revenue growth (%) | 1.1% | -16.1% |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 241.8 | 152.2 | 325.0 | 158.2 | 173.6 | 177.8 | 178.1 | 141.6 |
| Cost of revenue (vendor classification) * | 120.4 | 66.6 | 91.4 | 45.4 | 49.8 | 52.4 | 38.4 | |
| Other operating costs (vendor classification) * | 20.8 | 22.3 | 66.3 | 16.3 | 26.4 | 36.2 | 30.1 | |
| EBITDA (vendor classification) * | 88.5 | 66.2 | 162.7 | 86.0 | 82.1 | 72.3 | 57.6 | |
| Operating EBIT excluding other income | 76.2 | 40.4 | 133.2 | 58.4 | 59.0 | 60.3 | 45.1 | 30.9 |
| Finance costs | 2.26 | 2.96 | 3.95 | 3.46 | 2.04 | 2.75 | 2.02 | 1.09 |
| Profit before tax after associates and exceptional | 82.4 | 59.5 | 154.0 | 76.2 | 83.1 | 72.9 | 64.4 | 45.3 |
| Total current prior and deferred tax | 18.9 | 16.8 | 40.2 | 23.1 | 21.2 | 17.2 | 17.2 | 13.4 |
| Group profit after tax before NCI allocation | 63.4 | 42.7 | 113.7 | 53.1 | 61.9 | 55.7 | 47.2 | 31.8 |
| Diluted EPS not annualised for quarters (₹) | 7.26 | 4.42 | 11.24 | 5.31 | 6.61 | 6.09 | 3.51 | 3.83 |
| Materials consumed and inventory change | 116.8 | 62.8 | 86.4 | 38.0 | 48.5 | 38.9 | 40.0 | 25.9 |
| Employee benefits expense | 20.7 | 19.1 | 29.3 | 31.8 | 21.8 | 34.8 | 38.5 | 34.5 |
| Manufacturing and other expenses | 24.4 | 26.0 | 71.2 | 23.7 | 38.5 | 37.3 | 48.6 | 42.6 |
| Operating EBITDA excluding other income | 80.0 | 44.2 | 138.0 | 64.7 | 64.7 | 66.8 | 51.0 | 38.7 |
| EBITDA on company definition including other income | 88.5 | 66.2 | 162.7 | 86.5 | 90.1 | 82.4 | 73.7 | 57.9 |
| Other income | 8.47 | 22.0 | 24.8 | 21.8 | 25.3 | 15.6 | 22.7 | 19.2 |
| Depreciation and amortisation | 3.84 | 3.81 | 4.75 | 6.34 | 5.71 | 6.49 | 5.84 | 7.86 |
| Exceptional items signed addition | 0.00 | 0.00 | 0.00 | 0.00 | 0.94 | 0.00 | 0.00 | -3.37 |
| Share of associates and JV signed | 0.00 | 0.00 | -0.05 | -0.48 | -0.11 | -0.30 | -1.42 | -0.30 |
| Profit attributable to non-controlling interests | 0.77 | 2.95 | 12.7 | 5.32 | 2.51 | 0.94 | 15.7 | -2.61 |
| PAT attributable to equity holders of parent | 62.7 | 39.7 | 101.0 | 47.8 | 59.4 | 54.8 | 31.5 | 34.5 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 27.7% | 213.8% | 101.0% | 121.4% | -29.4% |
| EBITDA margin | 41.1% | 38.4% | 36.0% | ||
| Net margin | 29.1% | 28.8% | 28.1% | ||
| Return on equity | 32.1% | 25.5% | 10.5% | ||
| Return on capital employed | 1.5% | 23.2% | 42.3% | 31.3% | 11.8% |
| Return on assets | 20.9% | 20.0% | 9.2% | ||
| Borrowings less cash (₹ crore) | -6.29 | -103.5 | -30.7 | 3.55 | -60.4 |
| Borrowings less cash / EBITDA | -0.17x | 0.01x | -0.24x | ||
| Interest cover | 7.88x | 27.8x | 75.0x | 34.5x | 21.7x |
| Asset turnover | 0.24x | 0.52x | 0.72x | 0.70x | 0.33x |
| Receivable days | 166 | 142 | 153 | 154 | 119 |
| Inventory days (on revenue) | 131 | 82 | 140 | 45 | 100 |
| Payable days (on revenue) | 21 | 11 | 27 | 10 | 26 |
| Cash conversion | 0.10x | 0.11x | 1.26x | ||
| Capex intensity | 6.2% | 6.0% | 6.9% | 3.3% | 8.9% |
| Free cash flow (₹ crore) | -53.9 | 109.7 | -16.7 | -1.27 | 183.2 |
| Dividend payout | 1.3% | 3.2% | 9.3% | ||
| EPS, diluted (₹) | 0.25 | 5.20 | 15.34 | 32.07 | 21.52 |
| Book value per share (₹) | 36.46 | 41.68 | 55.48 | 192.3 | 215.9 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (Operating EBITDA excluding other income) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Borrowings less cash (₹ crore): borrowings less cash and cash equivalents, with no investments netted; negative is cash beyond borrowings.
- Borrowings less cash / EBITDA: borrowings less cash / EBITDA (Operating EBITDA excluding other income).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 2, information to 17 Oct 2026); market data at the close of 17 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Zen Technologies includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Zen Technologies
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 17 Oct 2026; page updated 26 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.