Zen Technologies announced its Q4FY26 financial results on May 3, 2026, reporting consolidated revenue of ₹178.08 crores and profit after tax of ₹31.53 crores for the quarter. The defense technology company secured new order inflows of ₹431.36 crores during Q4FY26, bringing its consolidated order book to ₹1,336.04 crores as of March 31, 2026. The company subsequently held an earnings conference call on May 04, 2026, to discuss these results, with the recording now available on its website at zentechologies.com/calls-and-conferences .

Q4FY26 Financial Performance

The company's quarterly performance showed consolidated revenue of ₹178.08 crores with total revenue including other operating income reaching ₹200.78 crores. EBITDA for the quarter stood at ₹73.69 crores, delivering an EBITDA margin of 41.38%. Operational EBITDA was ₹50.99 crores with an operational EBITDA margin of 28.63%. Total operating expenses for the quarter were ₹127.09 crores, while interest cost stood at ₹2.02 crores and depreciation at ₹5.84 crores. Profit before associates, exceptional items and tax came in at ₹65.83 crores.

The following table presents a detailed comparison of key performance indicators across quarters and years:

Annual Performance FY26

For the full financial year FY26, Zen Technologies reported consolidated revenue of ₹687.69 crores with total revenue of ₹773.11 crores. Annual EBITDA reached ₹332.66 crores with an EBITDA margin of 48.37%. The company's profit after tax for FY26 was ₹193.45 crores, reflecting the impact of delayed order conversions during the year. On a year-on-year basis, FY26 revenue declined from ₹973.64 crores in FY25, while EBITDA margin expanded from 44.36% in FY25 to 48.37% in FY26.

Order Book and Business Pipeline

The company's consolidated order book as of March 31, 2026 stood at ₹1,336.04 crores, built from an opening order book of ₹1,082.76 crores as at January 1, 2026, with new orders of ₹431.36 crores added and ₹178.08 crores executed during Q4FY26. Of the total order book, ₹121.81 crores relates to subsidiary companies. The order book is split between domestic and export segments as detailed below:

Management highlighted that the pipeline of opportunities remains robust, supported by the draft Defence Acquisition Procedure 2026 and the policy push towards Buy Indian IDDM initiatives. The majority of the current order book is scheduled for execution in FY27, providing strong revenue visibility.

Management Commentary and Strategic Outlook

Management noted that FY26 financial performance was muted relative to FY25, but highlighted the structural transformation achieved over the last two years. Zen Technologies now operates as a defense company with five capabilities ready for the Armed Forces: training simulation and systems, counter drone solutions, automated weapons stations, combat robotics, and drones. The company's expanded product portfolio is aligned with actual war needs as demonstrated in recent conflicts. Management also noted the contribution from subsidiaries to consolidated revenue and earnings, validating capital allocation decisions made over the years. While order conversion timing was delayed beyond expectations in FY26, FY27 execution is described as clearly visible. Globally, recent events have underlined the strategic importance of layered counter-UAS systems and trained, combat-ready forces — both areas where Zen Technologies has built deep capability over three decades.

Product Portfolio and R&D Focus

Zen Technologies' three-decade focus on R&D has produced products that have been validated in real battlefield conditions. The company has applied for over 200+ patents and shipped more than 1,000 training systems globally from its dedicated R&D and production facility in Hyderabad. The company's advanced product suite spans drone and counter-drone solutions (including anti-drone systems and loitering munitions), operational equipment such as force multipliers and ISR systems, training solutions covering live ranges, virtual simulation, live simulation and combat training centres, as well as naval simulation capabilities. Management expects to add several new products to the portfolio in coming quarters, each addressing capability gaps highlighted by current operational realities. The recent expansion positions Zen Technologies to compete across a wider set of defense opportunities going forward.

Zen Technologies Limited has announced the grant of 6,000 Employee Stock Options (ESOPs) to its eligible employees under the company's Employee Stock Option Plan 2021. The decision was approved by the Nomination and Remuneration Committee of the Board of Directors during their meeting held on May 01, 2026, as disclosed in the company's regulatory filing to stock exchanges.

ESOP Grant Details

The granted stock options are convertible into an equal number of equity shares with a face value of Re. 1/- each. The grant aligns with the provisions of the SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021.

Pricing and Exercise Terms

The options have been granted at an exercise price of ₹250 per option, which is strategically positioned above the face value of the company's equity shares but below the prevailing market price as of the grant date. This pricing structure provides potential value appreciation for employees while maintaining cost efficiency for the company.

Vesting and Exercise Timeline

The ESOPs follow a structured vesting and exercise schedule designed to retain talent and align employee interests with company performance:

Scheme Administration and Compliance

The Employee Stock Option Plan 2021 is administered and implemented by the Nomination and Remuneration Committee through Zen Technologies Limited Employees Welfare Trust. The grant follows eligibility criteria established under the scheme and ensures compliance with regulatory requirements.

The ESOP grant complies with SEBI regulations and the company has provided comprehensive disclosure details to both NSE and BSE as part of its transparency and compliance obligations. The filing was signed by Company Secretary and Compliance Officer Sourav Dhar, ensuring proper corporate governance procedures were followed.