Zen Technologies logo

Zen Technologies

ZENTEC NSE

Key Fundamentals

SmallcapEngineeringAerospace & Defense
Market Cap
₹14,463 Cr
Volatility
Moderate
P/E Ratio
78.96
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 7.53 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

2d ago
AI opinion · based on fundamentals
Risk high

Zen Technologies is a defence simulation and anti-drone systems company with a market cap of about Rs 14,691 Cr. Over five years it grew sales at a 66% CAGR and profit at a 128% CAGR. More recent numbers show a slowdown: TTM sales are down 24%, TTM profit is down 28%, and last-year ROE fell to 11% from a 3-year average of 18%. The stock trades at a P/E of 74.3 and a P/B of 7.74.

Bull Case 6
  • Profit has compounded at 128% CAGR over 5 years and 67% CAGR over 3 years, which shows strong operating leverage as the business scaled.
  • Sales have grown at a 66% CAGR over 5 years and 46% over 3 years, and median sales growth over the last 10 years is 44.8%. This points to structural demand, not a one-off spike.
  • The company is almost debt-free and has reduced debt. That gives it balance-sheet flexibility in a lumpy, order-driven defence business with 543 working capital days.
  • The stock has returned a 50% CAGR over 5 years and 35% over 10 years. The market has consistently rewarded the company's execution over long periods.
  • ROE averaged 18% over 3 years and 17% over 5 years, which is healthy for a debt-free company. The drop to 11% last year may reflect order timing rather than a lasting decline.
  • The 10-year profit CAGR is 56% against a 10-year sales CAGR of 29%, showing margins have widened over a full cycle.
Bear Case 8
  • TTM sales are down 24% and TTM profit is down 28%, a sharp reversal from the 3-year growth rates of 46% and 67%. Revenue appears to depend heavily on the timing of large defence orders.
  • At a P/E of 74.3 and a P/B of 7.74, the valuation assumes high growth returns, even though current earnings are shrinking.
  • Working capital days have risen from 379 to 543, which suggests slower collections or inventory build-up and ties up cash.
  • Other income of Rs 80.4 Cr is part of reported earnings, so core operating profit is lower than the headline figure suggests.
  • Promoter holding has fallen by 8.94 percentage points over the last 3 years. Some investors may read that as reduced insider alignment.
  • ROE fell to 11% last year from a 3-year average of 18%, which weakens capital efficiency just when the valuation multiple is high.
  • The 1-year stock return of 13% is well below the 3-year CAGR of 28% and the 5-year CAGR of 50%, showing momentum has slowed alongside earnings.
  • The dividend yield is 0.06%, so shareholders get almost no income while waiting for growth to recover.

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

AI News Digest

1d ago
Headwinds 2
  • Premium valuation hinges on execution Sep 11

    Moneycontrol notes that execution remains critical to justifying Zen's premium valuation. Any slip in delivering on simulator and anti-drone growth could weigh on investor confidence.

  • Back-ended FY27 recovery after Q1 Sep 2

    Management expects Q2 and Q3 performance to outpace Q1, which suggests a soft start to FY27. Full-year delivery now depends on order inflows picking up over the remaining quarters.

Positives 2
  • Defence modernisation tailwinds Sep 11

    Moneycontrol sees simulators and anti-drone systems as the key growth drivers over the next two years. Both are supported by India's push for defence modernisation and homeland security.

  • Strong FY27 margin guidance Sep 2

    Zen targets a 35% EBITDA margin and a 25% PAT margin for FY27. Management also expects more orders through the rest of the year and says it is confident it can handle the inflows.

Neutral 2
  • Trading window closed for Q2FY27 Sep 24

    The trading window is closed from October 1, 2026, until 48 hours after the Q2FY27 results are declared. This is a routine compliance step ahead of earnings.

  • 500 ESOP shares transferred Sep 17

    On September 16, 2026, the Employees Welfare Trust transferred 500 shares (₹1 face value) to employees under ESOP Plan 2021, at an exercise price of ₹500 per share. Paid-up capital stays unchanged at 9,02,90,356 shares, so there is no dilution.

TL;DR: Zen Technologies is well placed in high-growth defence areas like simulators and anti-drone systems, and its FY27 margin targets (35% EBITDA, 25% PAT) signal confidence in profitability. The main risks are execution against a premium valuation and a FY27 that leans on later quarters after a weaker Q1. Recent filings are routine compliance items with no material impact. The Q2FY27 results, due after the trading window closes in October, will be the first real test of whether order inflows and margins are on track with guidance.

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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64 extracted metrics + investor summaries across FY06–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 Aerospace & Defense sector, in the Engineering industry.
What is the market capitalisation of Zen Technologies Ltd?
Zen Technologies Ltd has a market capitalisation of ₹14,463 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 78.96, 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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