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.

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.