Shares of Zen Technologies were locked in a 20% lower circuit at ₹1,080 on February 17, following the release of the company’s Q3 results. While the drone manufacturer reported year-on-year growth, the numbers showed signs of weakness when compared to the previous quarter.
Zen Technologies posted a net profit of ₹38.62 crore in Q3, marking a 22% increase from ₹31.67 crore in the same quarter last year, driven by higher other income. However, the profit saw a significant sequential decline, dropping nearly 50% from ₹65.24 crore in the previous quarter.
Revenue also followed a similar pattern, growing 44% year-on-year to ₹141.52 crore, up from ₹98.08 crore. However, it was down 41% sequentially, from ₹241.69 crore in the September quarter, reflecting a noticeable slowdown.
On a more positive note, EBITDA margins showed improvement, rising to 35.90% from 35.12% in the previous quarter, though still down from 47.34% in the year-ago period.
In this quarter, we saw an increase in profitability driven by higher other income. However, we remain confident that we will meet our EBITDA target of 35% and PAT margins of 25% by the end of the financial year,” said Ashok Atluri, Chairman and Managing Director of Zen Technologies, in an exchange filing.
As of the end of the December quarter, the company’s order book remained strong at Rs 816.91 crore, providing management with confidence in a solid pipeline for the upcoming quarters.
In Q3, Zen Technologies transferred 9,000 equity shares to eligible employees who had previously received grants under the Zen Technologies Employee Stock Option Plan-2021, from the Zen Technologies Limited Employees Welfare Trust. Furthermore, the board of directors approved a series of acquisitions, including a 100% stake in Applied Research International Private Limited and ARI Labs Private Limited in multiple tranches, a 45.33% stake in Bhairav Robotics Private Limited through subscription, and a 51% stake in Vector Technics Private Limited via subscription.
