Zen Technologies Limited , a leading player in the defense and homeland security sector, has reported a significant decline in its financial performance for the first quarter. The company's standalone net profit fell by 50% year-over-year, while its revenue saw a substantial decrease.

Financial Highlights

Zen Technologies reported a standalone net profit of Rs 37.12 crore for the quarter, down from Rs 74.18 crore in the same period last year, marking a decrease of nearly 50%. The company's total income declined to Rs 130.95 crore from Rs 257.00 crore year-over-year, representing a 49.05% reduction.

Revenue from operations saw a significant drop, falling to Rs 111.06 crore compared to Rs 253.96 crore in the previous year, a decrease of 56.27%.

Consolidated Performance

On a consolidated basis, the net profit attributable to shareholders was Rs 47.75 crore, down from Rs 76.81 crore in the previous year, showing a decline of about 37.8%.

Order Book

Despite the decline in financial performance, Zen Technologies maintains a robust order book. The company reported orders worth Rs 605.97 crore at the standalone level and Rs 754.56 crore at the group level.

Strategic Moves

During the quarter, Zen Technologies made a strategic acquisition, purchasing a 76% stake in TISA Aerospace Private Limited for Rs 6.56 crore. This move is expected to strengthen the company's position in the aerospace sector.

Employee Stock Options

The company continues to focus on employee retention and motivation. During the quarter, Zen Technologies transferred 4,260 equity shares to employees under its stock option plan.

Management Commentary

While the company has not provided specific management commentary in the released financial results, the significant drop in revenue and profit may raise concerns among investors. The maintenance of a strong order book, however, suggests potential for recovery in the coming quarters.

The Board of Directors approved these unaudited financial results at their meeting. The results have been subject to limited review by the statutory auditors.

Zen Technologies Limited , a leading defense training solutions provider, has received a request from one of its promoters for reclassification as a public shareholder. This development comes following the end of the promoter's tenure as a key executive in the company.

Reclassification Request Details

Mr. Ravi Kumar Midathala, currently classified as a promoter of Zen Technologies Limited, has formally requested to be reclassified from the 'Promoter' category to the 'Public' shareholder category. Mr. Midathala holds 5,00,000 equity shares, representing approximately 0.55% of the company's total paid-up share capital.

Reasons for Reclassification

The request for reclassification comes after Mr. Midathala's tenure as Whole-Time Director and Key Managerial Personnel (KMP) concluded on June 28, 2025. In his formal request, Mr. Midathala confirmed several key points:

1. He and his immediate relatives hold less than 10% of the total voting rights in the company.
2. They do not exercise control over the company's affairs, either directly or indirectly.
3. They have no special rights through formal or informal arrangements, including shareholder agreements.
4. Neither he nor his immediate relatives are represented on the Board of Directors or act as key managerial personnel.

Regulatory Compliance

The reclassification process requires approval from Zen Technologies' Board of Directors and the stock exchanges where the company is listed - the National Stock Exchange of India Limited (NSE) and BSE Limited. This procedure is in accordance with Regulation 31A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Response

Zen Technologies has acknowledged receipt of Mr. Midathala's request letter and has informed the stock exchanges about this development. The company's Board of Directors will consider the request and take necessary steps for the reclassification process, subject to regulatory approvals.

Impact and Outlook

While this reclassification, if approved, will change Mr. Midathala's shareholder status, it does not significantly alter the company's overall shareholding structure given the small percentage of shares involved. The move is seen as a procedural step following the end of Mr. Midathala's executive role in the company.

Investors and market participants will be watching closely as Zen Technologies proceeds with the reclassification process, which is expected to be completed in due course, subject to necessary approvals from the board and regulatory authorities.