Zen Technologies logo

Zen Technologies

ZENTEC NSE

Key Fundamentals

SmallcapEngineeringAerospace & Defense
Market Cap
₹15,534 Cr
Volatility
Moderate
P/E Ratio
86.3
EBITDA
₹333 Cr
Return on Equity
11.18%
Debt to Equity
0.01
Book Value
₹209.22
EPS
₹18.54
52W High
₹2,043.7
52W Low
₹1,223

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 128% CAGR over last 5 years
  • Company's median sales growth is 44.8% of last 10 years

Weaknesses

4
  • Stock is trading at 8.23 times its book value
  • Earnings include an other income of Rs.80.4 Cr.
  • Promoter holding has decreased over last 3 years: -8.94%
  • Working capital days have increased from 379 days to 543 days

Growth Rate

Revenue Growth
-25.09% lower than 3Y
Net Income Growth
-27.2% lower than 3Y
Cash Flow Change
688%
ROE
-35.15% lower than 3Y
ROCE
-32.99% higher than 3Y
EBITDA Margin (Avg.)
2.82% higher than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 5d ago
AI opinion · based on fundamentals
Risk high

Zen Technologies Ltd is a Hyderabad-based defense electronics company with a market cap of ₹16,580 Cr trading at a PE of 82.4x. While the company delivered a 5-year profit CAGR of 128% and is nearly debt-free, its TTM sales have declined 24% and working capital days have stretched to 543 days, reflecting a period of near-term operational stress after strong multi-year growth.

Bull Case 7
  • Exceptional 5-year compounded profit growth of 128% CAGR demonstrates strong earnings scalability in the defense electronics segment
  • Company is almost debt-free, providing a clean balance sheet and financial flexibility to fund future order execution without leverage risk
  • 5-year compounded sales CAGR of 66% reflects a sustained demand trajectory driven by India's indigenization push in defense procurement
  • Median sales growth of 44.8% over the last 10 years indicates consistent top-line expansion well above broader market growth rates
  • 3-year stock price CAGR of 29% and 10-year CAGR of 37% reflect sustained investor confidence and long-term wealth creation
  • Company has actively reduced debt, strengthening its balance sheet and lowering financial risk heading into a lumpy order-book environment
  • 10-year compounded profit CAGR of 56% shows the business has delivered through multiple defense procurement cycles, not just a single upcycle
Bear Case 8
  • TTM sales have declined 24% year-over-year, signaling potential order execution delays or lumpy revenue recognition typical of defense contracts
  • TTM profit has declined 28%, indicating that the top-line slowdown is flowing through to the bottom line with limited cost flexibility
  • Working capital days have increased sharply from 379 to 543 days, tying up significantly more capital in operations and pressuring cash flows
  • PE ratio of 82.4x is elevated and leaves little margin of safety if growth does not reaccelerate to historical levels
  • Price-to-book of 8.58x is steep for a mid-cap defense company, implying the market is pricing in substantial future growth that must materialize
  • Promoter holding has decreased by 8.94% over the last three years, which may raise questions about insider confidence or dilution
  • Earnings quality is a concern as other income of ₹80.4 Cr forms a meaningful portion of reported profits, potentially flattering core operating performance
  • ROE has declined from a 3-year average of 18% to 11% in the last year, suggesting returns on equity are compressing even as the stock trades at a premium valuation

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2h ago
Headwinds 1
  • Execution risk at premium valuation Sep 11

    Moneycontrol notes that execution remains critical to justifying Zen Technologies' premium valuation. Successful delivery on strategic initiatives is essential to maintain investor confidence in the competitive defence tech market.

Positives 2
  • Defence spending boosts growth outlook Sep 11

    Zen Technologies is positioned to benefit from India's rising defence spending, with simulators and anti-drone systems expected to be key revenue drivers over the next two years.

  • Strong margin targets for FY27 Sep 02

    Management targets 25% PAT margin and 35% EBITDA margin in FY27, with Q2 and Q3 expected to outpace Q1 results. Increased order inflows are predicted for the rest of FY27.

Neutral 2
  • 33rd AGM appoints new directors Aug 29

    Zen Technologies held its 33rd AGM on August 29, 2026, approving appointment of two independent directors and reappointment of the whole-time director via video conferencing.

  • Investor meet at Elara Dialogue Aug 27

    Zen Technologies will participate in the Ashwamedh - Elara India Dialogue 2026 on September 3, 2026, an in-person investor meeting in Mumbai organized by Elara Capital.

TL;DR: Zen Technologies is well-positioned in India's expanding defence modernization cycle, with simulators and anti-drone systems as core growth drivers. Management has set ambitious FY27 margin targets of 25% PAT and 35% EBITDA, signaling confidence in the order pipeline. The key risk is execution at a premium valuation — delivery on strategic initiatives will be closely watched. The trend is constructive heading into the stronger H2 of FY27, but sustained order inflows will be critical to justify current market expectations.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
132
66
100
141
255
242
152
325
158
174
178
178
142
Expenses
64
48
57
91
143
162
108
187
94
109
111
129
103
Operating Profit
69
19
42
50
111
80
44
138
64
65
67
50
38
OPM %
52%
29%
43%
36%
44%
33%
29%
42%
41%
37%
37%
28%
27%
Other Income
3
5
4
5
3
8
22
25
22
26
16
23
16
Interest
0
1
1
1
1
2
3
4
3
2
3
2
1
Depreciation
2
2
3
3
3
4
4
5
6
6
6
6
8
PBT
69
22
44
52
110
82
59
154
76
83
73
64
45
Tax %
30%
37%
32%
27%
28%
23%
28%
26%
30%
26%
24%
27%
30%
Net Profit
48
14
30
38
79
63
43
114
53
62
56
47
32
EPS in Rs
5.6
1.82
3.64
4.16
9.14
6.94
4.4
11.19
5.29
6.58
6.07
3.49
3.82
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
46
79
53
62
92
149
55
70
219
440
974
688
671
Expenses
46
58
48
50
76
87
47
65
146
259
591
443
452
Operating Profit
1
21
4
11
17
63
7
5
73
181
382
245
219
OPM %
1.3%
27%
8%
18%
18%
42%
14%
7%
33%
41%
39%
36%
33%
Other Income
4
3
5
4
3
2
3
5
9
17
58
86
80
Interest
2
2
2
2
5
3
1
2
4
2
19
10
8
Depreciation
2
2
4
4
4
5
5
5
6
10
15
24
26
PBT
0
20
3
9
11
57
4
3
72
186
406
297
266
Tax %
25%
21%
21%
20%
-19%
-3%
36%
21%
30%
30%
26%
27%
—
Net Profit
0
16
2
7
13
59
3
3
50
130
299
218
197
EPS in Rs
0.01
2.04
0.3
0.93
1.73
7.62
0.39
0.25
5.38
15.22
31.04
21.43
19.96
Div. Payout %
1103%
17%
33%
16%
17%
5%
26%
40%
4%
7%
6%
5%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
8
8
8
8
8
8
8
8
8
8
9
9
Reserves
91
103
105
112
127
183
196
275
308
440
1,692
1,880
Borrowings
18
40
41
11
42
3
2
15
7
6
78
19
Other Liabilities
12
27
14
15
42
20
17
71
151
296
271
248
Total Liabilities
128
177
167
146
218
214
223
369
474
750
2,049
2,155
Fixed Assets
49
47
44
45
63
73
70
67
75
93
208
239
CWIP
1
0
15
17
0
0
0
3
2
11
7
15
Investments
0
0
0
0
8
2
2
2
2
0
4
6
Other Assets
78
130
108
84
147
139
152
297
394
646
1,830
1,895
Total Assets
128
177
167
146
218
214
223
369
474
750
2,049
2,155
Figures in ₹ Crores

Cash Flow

Particulars Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
10
-20
0
0
-49
62
6
-44
116
13
31
245
Investing
-8
-4
0
0
13
-12
-10
-44
-4
-85
-1,000
-162
Financing
-7
20
0
0
5
-12
9
88
-22
-3
1,007
-78
Net Cash Flow
-5
-4
0
0
-32
38
5
0
91
-75
37
5
Free Cash Flow
-13
-22
0
0
-54
52
5
-49
103
-16
-1
185
CFO/OP
1,269
-94
0
0
-286
118
118
-921
180
26
39
136
Figures in ₹ Crores

Ratios

Particulars Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
90
276
56
121
290
114
124
166
142
153
154
119
Inventory Days
295
225
242
237
496
137
609
693
305
523
118
415
Days Payable
63
47
52
92
114
44
132
109
42
99
25
109
Cash Conversion Cycle
322
455
246
265
672
206
601
750
406
577
247
425
Working Capital Days
45
119
-66
187
191
191
535
629
115
158
435
543
ROCE %
2%
16%
3%
8%
—
32%
3%
2%
23%
46%
37%
16%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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50 extracted metrics + investor summaries across FY14–FY27.

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Shareholding Pattern

Others5.96%Promot.48.51%FIIs6.46%DIIs10.41%Public28.65%As ofJun 2026

Documents

Frequently Asked Questions about Zen Technologies

What does Zen Technologies Ltd do?
Zen Technologies Limited was incorporated in 1996. The company designs develop and manufacture combat training solutions and Counter-drone solutions for defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state p...
Where is Zen Technologies Ltd (ZENTEC) listed?
Zen Technologies Ltd trades as ZENTEC on the NSE and under code 533339 on the BSE.
Which sector does Zen Technologies Ltd belong to?
Zen Technologies Ltd is classified under the Industrials sector, in the Aerospace & Defense industry.
What is the market capitalisation of Zen Technologies Ltd?
Zen Technologies Ltd has a market capitalisation of ₹15,534 Cr, which places it in the Mid Cap band.
What is the PE ratio of Zen Technologies Ltd?
Zen Technologies Ltd trades at a PE ratio of 86.30, on earnings per share of ₹18.54, against a book value of ₹209.22 per share.
What is the 52-week high and low of Zen Technologies Ltd?
Over the last 52 weeks Zen Technologies Ltd has traded between ₹1,223 and ₹2,043.7.
Does Zen Technologies Ltd pay dividends?
Zen Technologies Ltd has a dividend yield of 0.06%.
What is the Return on Equity (ROE) of Zen Technologies Ltd?
Zen Technologies Ltd reported a return on equity of 11.18%. Its debt-to-equity ratio is 0.01.

Company Information

Zen Technologies Limited was incorporated in 1996. The company designs develop and manufacture combat training solutions and Counter-drone solutions for defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces, and paramilitary forces. Zen Technologies is headquartered in Hyderabad, India with offices in India, UAE, and the USA. [1] [2] [3]

Website zen.in
CEO Mr. Ashok Atluri B.Com, PGDACS
Employees 395
Listed 2015-03-30
Face Value ₹ 1
Issued Size 9,02,90,356

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