Zen Technologies has appointed Ms. Uma Priyadarshini Kollareddy as a Non-Executive Independent Director, effective August 04, 2026. The Board of Directors approved the appointment via circular resolution following a recommendation from the Nomination and Remuneration Committee. This move strengthens the company’s governance framework by adding an executive with over 16 years of experience in capital markets, corporate transformation, and strategic investments to its leadership team.

Ms. Kollareddy will serve for a term of three consecutive years. Her designation is categorized as Additional Director (Non-Executive, Independent) and Non-Executive Independent Director. The appointment remains subject to ratification by the company’s shareholders at the ensuing general meeting. The Board confirmed that she is not debarred from holding office by any order passed by the Securities and Exchange Board of India (SEBI) or any other authority, in compliance with BSE Circular No. LIST/COMP/14/2018-19 and NSE Circular No. NSE/CML/2018/24 dated June 20, 2018.

Profile and Expertise

Ms. Uma Priyadarshini Kollareddy, aged 41, holds a Bachelor of Technology degree in Electronics and Communication Engineering from Vignana Jyothi Institute of Engineering & Technology. She further holds a Master of Science degree in Financial Engineering from Columbia University and a Master of Business Administration from Columbia Business School, New York. Her expertise spans corporate transformation, institutional development, strategic investments, and corporate governance.

Currently, Ms. Kollareddy serves as Executive Director of Midwest Limited, where she drives initiatives related to international investments, organizational performance, investor engagement, and sustainability. Her responsibilities include overseeing cross-border transactions and evaluating restructuring proposals for overseas capital commitments. She also serves as an Independent Director on the Board of Awaze Limited and is a member of the Investment Committee of T-Fund, an initiative involving T-Hub and the Government of Telangana.

Regulatory Disclosures

The intimation was filed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Detailed disclosures were provided under SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The filing confirms that Ms. Kollareddy is not related to any other Director on the Board of Zen Technologies Limited.

The appointment aims to leverage Ms. Kollareddy’s experience in stakeholder management and financial engineering to support the company’s long-term value creation and strategic growth objectives.

Zen Technologies reported a consolidated revenue from operations of ₹141.6 crore for the quarter ended June 30, 2026 (Q1FY27), a decline from ₹158.2 crore in Q1FY26 and ₹178.1 crore in Q4FY26. Despite the revenue dip, profit after tax (PAT) rose to ₹34.5 crore, up from ₹31.5 crore in the previous quarter, driven by stable gross margins and controlled operational expenses. The company secured a significant post-quarter order worth ₹177.5 crore from the Ministry of Defense for tank and crew gunnery simulator upgrades, reinforcing its robust order book of ₹1,239 crore as of June 30, 2026.

The filing was submitted to the National Stock Exchange of India Limited and BSE Limited on July 31, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript details management’s commentary on margin dynamics, order book execution, and future growth drivers across defense simulation and anti-drone systems.

Financial Performance

Consolidated revenue for Q1FY27 stood at ₹141.6 crore, reflecting a typical execution cycle where revenue is weighted towards Q2 and Q3 due to orders secured in the second half of FY2026. Operational EBITDA was ₹38.7 crore, representing a margin of 27.3%, compared to 28.6% in Q4FY26 and 40.9% in Q1FY26. The margin compression is attributed to negative operating leverage on a lower revenue base, rather than structural changes in profitability. Gross margin remained stable at 72.9%, consistent with sequential and year-on-year trends.

Profit after tax for the quarter was ₹34.5 crore (PAT margin of 24.3%), compared to ₹31.5 crore in Q4FY26 and ₹47.8 crore in Q1FY26. The current quarter’s PAT includes a one-off exceptional loss of ₹3.4 crore due to a fire incident at a subsidiary, which damaged adequately insured inventory. Adjusted for this item, PAT would have been approximately ₹37 crore, implying a margin of roughly 26.1%. Year-on-year comparison is further impacted by provision releases of ₹7.65 crore in Q1FY26 that are not recurring.

Order Book and Pipeline

As of June 30, 2026, the consolidated order book stood at ₹1,239 crore, comprising ₹920.6 crore in equipment orders and ₹318.4 crore in Annual Maintenance Contract (AMC) orders. During the quarter, the company executed ₹141.6 crore of orders and secured ₹44.6 crore in new orders, resulting in a net reduction from the March position. Subsequent to the quarter-end, Zen Technologies received a ₹177.5 crore order from the Ministry of Defense for the upgradation and integration of tank and crew gunnery simulators. Management expects the order book to reach approximately ₹2,500 crore by the end of FY2027, supported by a healthy pipeline of opportunities in counter-drone and training systems.

Working Capital and Balance Sheet

The consolidated working capital cycle extended to 257 days as of June 30, 2026, primarily driven by an increase in advances to suppliers and inventory buildup related to ongoing production activities. Debtor days remained stable at 122 days. The group maintains a strong liquidity position with cash and bank balances of approximately ₹1,217 crore and remains debt-free. This cash reserve supports ongoing operations and potential strategic acquisitions, as hinted by management regarding future investments in complementary technologies.

What the Numbers Show

The divergence between stable gross margins (72.9%) and compressed EBITDA margins (27.3%) highlights the impact of fixed cost absorption on a lower revenue base. With a significant portion of the cost structure being fixed, the operating leverage works against margins in quarters with delayed execution but is expected to reverse as revenue scales in Q2 and Q3. The one-off fire loss further obscures underlying operational performance, making the adjusted PAT margin of ~26.1% a more accurate reflection of core profitability. The substantial cash position of ₹1,217 crore provides ample runway for executing the current order book and pursuing acquisitions without external financing needs.