Zen Technologies shares hit 5% upper circuit for 2nd straight session; here is why the Street is buoyant

In the previous session, too, the stock hit its upper circuit band.

Shares of Zen Technologies are in heavy demand owing to increased buying interest by market participants after Operation Sindoor as well as the company posting an encouraging set of numbers for the March quarter (Q4 FY25) as well as the full fiscal year (FY24-25).

As per the company's investor presentation, Zen Technologies reported a standalone revenue of ₹293.50 crore during the March 2025 quarter (Q4 FY25), up 116% YoY, while its operational EBITDA, or earnings before interest, taxes, depreciation, and amortisation, jumped 122% YoY to ₹99.39 crore. Its profit after tax (PAT) came in at ₹84.92 crore, up 157% YoY.

Operational EBITDA margin jumped to 33.86% from 32.95% in the corresponding quarter of the previous fiscal year.

For FY25, the company's revenue came in at ₹930.67 crore, up 116% YoY, while operational EBITDA jumped 79% YoY to ₹323.10 crore. Its PAT zoomed to ₹262.95, up 103% YoY.

However, operational EBITDA margins slipped to 34.72% from 41.96% in FY24.

What management said

“Zen Technologies has surpassed its guidance for FY25, achieving a top line of over ₹900 crores, along with EBITDA and PAT margins exceeding the guided 35% and 25%, respectively, marking the highest-ever quarterly and annual performance in the company’s history. During the quarter, we secured a significant order from the Ministry of Defence for Integrated Air Defence Combat Simulators (IADCS) for the L70 gun, which we expect to execute within this financial year," said Ashok Atluri, Chairman and Managing Director.

On the acquisition front, the chairman said that the company has made substantial progress. "We acquired a 76% stake in ARIPL in February 2025, with the remaining 24% to be acquired in the current financial year," the MD added.

ARIPL stands for Amara Raja Infra Pvt. Ltd., the infrastructure arm of the Amara Raja Group.

The MD said that ARIPL brings deep expertise in marine and naval simulation, and the company sees a strong potential for synergies. With the strategic acquisition of a 51% stake in Vector Technics – one of the few indigenous manufacturers of critical drone components – Zen Tech has entered the core of the drone ecosystem.

"Further, we have acquired 45.33% in Bhairav Robotics, a company focused on robotics and autonomous weapons systems. These acquisitions mark a significant step forward in the direction of next-generation defence technologies and future-ready national security solutions," the MD added.

Liquidity position

The chairman added that the company's liquidity position remains robust at approximately ₹1,037 crores, reflecting its disciplined working capital management and enabling it to pursue growth initiatives and invest strategically in future capabilities.

"We continue to evaluate inorganic growth opportunities to further strengthen our portfolio. We have significantly increased our R&D investments, not only to enhance current offerings but also to build a pipeline of innovative products that will address emerging defence requirements. In line with this, we are planning an expansion of our existing R&D centre with an investment of close to ₹70 crores to further accelerate product development and create new opportunities for long-term growth," the chairman added.

"The evolving nature of modern warfare has highlighted the importance of advanced counter-drone systems and comprehensive training solutions. We have delivered band-independent counter-drone systems for the first time in India. These systems proved very effective in the recent operations conducted by the Armed Forces," the press release added.

About Zen Technologies

Zen Technologies Limited is a leading company in providing world-class, state-of-the-art defence training and anti-drone solutions. With ated R&D (recognised by the Ministry of Science and Technology, Government of India) and a production facility in Hyderabad, the company has applied for over 172+ patents and shipped more than 1,000 training systems around the world, it adds.

Zen Technologies share price trend

Shares of the company have rallied 24.80% in the past week and 42.54% over the past two weeks, BSE data show.