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Zen Technologies Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤31st Jan 26

Summary : Zen Technologies reports strong Q3 FY26 results, driven by a robust order book and strategic acquisitions, while re-appointing key leadership.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Q3 FY26 Total Expenses: Rs. 6,814.22 lakhs.
  2. Consolidated Q3 FY26 Total Expenses: Rs. 12,026.16 lakhs.
  3. Key expenses include cost of materials, employee benefits, depreciation.
  4. Standalone Q3 FY26 Revenue from operations: Rs. 11,615.49 lakhs.
  5. Standalone Q3 FY26 Other income: Rs. 1,433.86 lakhs.
  6. Consolidated Q3 FY26 Revenue from operations: Rs. 17,782.26 lakhs.
  7. Consolidated Q3 FY26 Other income: Rs. 1,562.30 lakhs.
  8. Paid-up Equity Share Capital (Standalone & Consolidated): Rs. 902.90 lakhs.
  9. Other Equity (Standalone): Rs. 167,995.69 lakhs (Year Ended 31 Mar 2025).
  10. Other Equity (Consolidated): Rs. 1,69,166.29 lakhs (Year Ended 31 Mar 2025).
  11. Mr. Ashok Atluri is brother of Mr. Kishore Dutt Atluri.
  12. Mr. Ashok Atluri is spouse of Mrs. Shilpa Choudari.
  13. Mr. Hari Haran Chalat is not related to any Director.
  14. Both standalone and consolidated unaudited financial results are presented.
  15. Consolidated results include subsidiaries and associates.

Corporate Overview

  1. India (Hyderabad, Telangana)
  2. South Korea
  3. Singapore
  4. Designs and develops simulators for defence and homeland security.
  5. Provides virtual and live simulation systems for various forces.
  6. Focuses on technology direction and product development.
  7. Formal and compliant, reporting board decisions and financial outcomes.
  8. Infantry, Armoured Corps, Mech Forces, Air Defence.
  9. Police Forces, Central Police Organisations, Civilians, Miners.
  10. Entire operations relate to Defence and Homeland segment.
  11. Works located at Plot No. 36, Hardware Park, Hyderabad.
  12. Acquired 76% equity in Anawave Systems & Solutions Private Limited (ASSPL) for Rs.7.00 Crores.
  13. Acquired remaining 24% equity in Applied Research International Private Limited (ARIPL).

Risk Factors

  1. Increased gratuity liability from new labor laws.
  2. Reliance on unaudited financial data for some entities.
  3. Interim review scope is less than full audit.
  4. No explicit audit opinion on interim results.

Key Drivers

  1. Robust consolidated order book of Rs. 1,082.76 Crores.
  2. Strategic acquisitions expand company's capabilities.
  3. Key leadership re-appointed for continuity.
  4. Strong focus on defence and homeland security.

Auditor’s Report

  1. Do not express an audit opinion on interim financial information.
  2. Conclusion on the Statement is not modified.
  3. Unaudited financial results of one branch not reviewed by branch auditor.
  4. Unaudited financial results of six subsidiaries and one joint venture reviewed by other auditors.
  5. Unaudited financial results of five subsidiaries and one associate certified by management.

Board Commentary

  1. Re-appointment of Mr. Ashok Atluri as Chairman and Managing Director for 3 years.
  2. Re-appointment of Mr. Kishore Dutt Atluri as President and Joint Managing Director for 3 years.
  3. Appointment of Mr. Hari Haran Chalat as Chief Financial Officer.
  4. Increase in gratuity liability due to new labor codes (Rs.1.24 Crores consolidated).
  5. Assessed financial impact of new labor laws on gratuity liability.
  6. Compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
  7. Acquisition of Anawave Systems & Solutions Private Limited (ASSPL).
  8. Acquisition of Applied Research International Private Limited (ARIPL).
  9. Transfer of equity shares to employees under ESOP Plan-2021.

Corporate Governance

  1. Chief Financial Officer, Mr. Hari Haran Chalat, is not related to any Director.
  2. Nomination and Remuneration Committee.
  3. Audit Committee.

Management Discussion & Analysis

Future Strategy

  1. Re-appointment of key leadership for continuity and strategic direction.
  2. Integration of acquired entities to enhance capabilities.

Performance Drivers

  1. Strong consolidated order book of Rs. 1,082.76 Crores as of Dec 31, 2025.
  2. Strategic acquisitions of ASSPL and ARIPL contributing to growth.
  3. Continued focus on defence simulation and training market.