Introduction:
A leading defence stock faced a sharp decline in Q3FY25, reporting weaker financials compared to Q2FY25. Sales and total revenue dropped significantly, while net profit fell by 40.8%. The stock hit a 20% lower circuit following the disappointing earnings report.
Share Price movement of Zen Technologies:
On February 17, 2025, Zen Technologies Limited opened at ₹1,206.00, reaching a high of ₹1,231.45 and a low of ₹1,080.00, hitting a 20% lower circuit from its previous close of ₹1,350.00. Currently, it is trading at ₹1,080.00, with a market cap of ₹9,751.36 crore.
Zen Technologies share price rise:
Zen Technologies reported a decline in Q3FY25 financial performance compared to Q2FY25. Sales fell from ₹241.69 crore to ₹141.52 crore, a 41.4% drop. Total revenue declined by 34.6%, while EBITDA decreased by 33.3% to ₹58.69 crore. Despite lower revenue, EBITDA margins improved from 35.12% to 35.90%.
Interest costs rose by 31.9% to ₹2.73 crore, while depreciation increased by 12%. Profit before tax saw a sharp decline of 35.8%, dropping from ₹83.46 crore to ₹53.36 crore. Operating expenses also declined by 35.4%, but the overall revenue reduction outweighed cost benefits, impacting profitability.
Profit after tax fell from ₹65.24 crore to ₹38.62 crore, marking a 40.8% decline. This significant drop in net profit led to a sharp selloff in the stock. A leading defence stock hit a 20% lower circuit after its net profits declined by a similar percentage in Q3.
Also Read: Defence stocks with ROE and ROCE of more than 25% to look out for
Recent news About Zen Technologies :
On February 15, 2025, Zen Technologies announced strategic investments in Vector Technics and Bhairav Robotics. The company acquired a 51% stake in Vector Technics, enhancing its capabilities in UAV propulsion systems, and a 45.33% stake in Bhairav Robotics, specializing in advanced defense robotics and autonomous systems
Stock performance of Zen Technologies for Period of 1 week, 6 months and 1 year:
Zen Technologies stock performance showed mixed trends across different periods. Over the past week, it declined by 16.5%. In the last six months, it dropped further by 24.3%. However, on a yearly basis, the stock delivered a strong return of 66.6%, reflecting long-term resilience.
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Shareholding pattern of Zen Technologies:
| All values in % | Dec-24 | Sep-24 | Jun-24 |
| Promoters | 49.05 | 51.26 | 55.07 |
| FII | 8.29 | 5.72 | 3.09 |
| DII | 8.97 | 8.05 | 3.37 |
| Retail & others | 33.7 | 34.96 | 38.47 |
About Zen Technologies:
Zen Technologies is a leading Indian defence technology company specializing in combat training solutions, simulators, and anti-drone systems. It develops advanced military training equipment for armed forces, paramilitary, and police, supporting India’s defence modernization and self-reliance in indigenous defence manufacturing.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
