Zen Technologies , a leading provider of defence training and anti-drone solutions, experienced a 5% drop in its share price to Rs 1,690.70 following the release of its quarterly results. The company reported a significant decline in both revenue and profit for the first quarter of the fiscal year.

Financial Performance

The company's financial results for Q1 revealed:

The company's standalone performance showed similar trends, with revenue from operations decreasing to Rs 111.06 crore from Rs 253.96 crore in the same quarter of the previous year.

Management Commentary

Ashok Atluri, Chairman and Managing Director of Zen Technologies, addressed the results, stating, "Our Q1FY26 results reflect moderation in topline growth, we believe this is a temporary adjustment phase with a much stronger long-term growth trajectory." He emphasized that despite the temporary moderation, the company's business fundamentals remain strong, with maintained EBITDA and PAT margins reflecting operational discipline and cost efficiency.

Order Book and Future Outlook

The company reported a consolidated order book of Rs 754 crores and maintained a debt-free balance sheet. Management expressed confidence in achieving their order inflow guidance of Rs 800 crores for H1FY26, with Rs 150 crores already secured and the remaining Rs 650 crores expected to materialize within the first half.

Strategic Developments

During the quarter, Zen Technologies completed the acquisition of TISA Aerospace Private Limited (76% shareholding), marking its expansion into the high-growth UAV and loitering munitions segment. This aligns with emerging global defense requirements and is expected to contribute to enhanced operational synergies.

Market Performance

Despite the recent dip, Zen Technologies' stock has gained 10.33% over the last 12 months. However, it has fallen 30.87% year-to-date. Among the 14 analysts tracking the company, seven maintain a 'buy' rating, four recommend 'hold', and three suggest 'sell'. The average 12-month consensus price target implies an 11.80% upside potential.

As Zen Technologies navigates through what it describes as a year of consolidation, the company remains focused on executing its long-term strategy. Management maintains confidence in achieving its targeted cumulative revenue of Rs 6,000 crores over the next three financial years, supported by a robust pipeline and continued policy support for indigenous manufacturing in the defense sector.

Zen Technologies Limited, a leading defense technology company, has announced a significant change in its shareholding structure. The company's Board of Directors, in a meeting held on Saturday, July 26, 2025, approved the reclassification of Mr. Ravi Kumar Midathala from the 'Promoter' category to the 'Public' category shareholder.

Reclassification Request

The decision comes in response to a request letter dated July 24, 2025, submitted by Mr. Midathala, seeking reclassification of his status. The board carefully considered the rationale provided in his request before granting approval.

Compliance with SEBI Regulations

In accordance with Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, Mr. Midathala confirmed several key points in his request letter:

1. He, along with his immediate relatives, does not hold more than ten percent of the total voting rights in the company.
2. Neither he nor his immediate relatives exercise control over the affairs of Zen Technologies, directly or indirectly.
3. They do not have any special rights through formal or informal arrangements, including any shareholder agreements.
4. Neither Mr. Midathala nor his immediate relatives hold any board positions or are represented on the Board of Directors of the company.
5. They do not act as key managerial personnel in Zen Technologies.
6. Mr. Midathala is not declared as a willful defaulter by the Reserve Bank of India.
7. He is not classified as a fugitive economic offender.
8. There are no pending regulatory actions against him.

Next Steps

The board noted that Mr. Midathala has provided an undertaking to comply with the conditions set out in Regulation 31A(3)(b) of the SEBI Listing Regulations. However, the reclassification is subject to the approval of stock exchanges - BSE Limited and the National Stock Exchange of India Limited.

This move represents a significant change in the company's shareholding structure and aligns with regulatory requirements for transparency in corporate ownership and control.

Zen Technologies Limited, known for its cutting-edge defense simulation and training solutions, continues to maintain its commitment to corporate governance and regulatory compliance as it evolves its shareholder structure.