Shares of Zen Applied sciences, a frontrunner in defence simulation and anti-drone know-how, declined for the third session at present, February 8, recording a ten% drop to hit an 8-month low of ₹976 apiece.
Within the earlier buying and selling session, the inventory reached the 20% decrease circuit restrict as the corporate’s December quarter efficiency didn’t excite buyers. A drop in its order e book and a fall in core revenue margins dented investor sentiment, main the as soon as high-flying inventory to the touch multi-month lows.
The corporate’s income from operations through the December quarter (QFY25) stood at ₹152.21 crore, reflecting a 53% year-on-year (YoY) improve, whereas EBITDA rose to ₹66.24 crore from ₹46.73 crore. Nonetheless, margins dropped to 38% from 45% in the identical interval final yr, impacted by the sharp rise in working bills.
A major soar in different earnings boosted the corporate’s profitability, as internet revenue jumped by 30% YoY to ₹39.72 crore, with revenue margins declining to 22% in Q3FY25, in comparison with 29% in Q3FY24.
The order e book moderated through the quarter, with the order e book standing at ₹816 crore as of December, in comparison with ₹956 crore on the finish of the second quarter. Throughout Q3FY25, new orders value ₹1.69 crore had been secured, with ₹1.69 crore attributed to AMC, and no new gear orders had been obtained.
Within the second quarter of the present fiscal yr, the corporate secured new orders value ₹668 crore, together with ₹288 crore value of Annual Upkeep Contracts (AMC), as per the corporate’s earnings submitting.
Taking a look at the long run, the corporate is well-positioned amidst the rising defence spending by the Indian authorities. The Union Finances 2025 demonstrates the federal government’s dedication to strengthening the defence sector, with a report allocation of over ₹6.81 lakh crore for the Ministry of Protection, marking a 9.53% improve from FY25.
This features a substantial ₹1.80 lakh crore earmarked below the capital funds for armed forces, offering important tailwinds for the business.
In the meantime, the corporate introduced strategic investments in two firms—Vector Technics Non-public Restricted and Bhairav Robotics Non-public Restricted. With these acquisitions, the corporate expands past fight coaching into superior defence applied sciences, strengthening its skill to ship built-in options for armed forces worldwide.
The corporate said that these investments improve its capabilities in UAV propulsion, autonomous robotics, and aerospace parts, driving self-reliance in protection manufacturing. The acquisitions additionally place the corporate to compete globally, catering to worldwide markets looking for cutting-edge, Indian-made defence options.
Inventory corrects 60% in lower than 2 months
The corporate’s shares have corrected by 60% in lower than two months, falling from ₹2445 apiece to the present buying and selling worth of ₹972. Regardless of this sharp correction, the inventory remains to be up by 315% during the last 2 years and 1700% during the last 5 years.
Disclaimer: The views and proposals given on this article are these of particular person analysts. These don’t symbolize the views of Mint. We advise buyers to verify with licensed consultants earlier than taking any funding selections.
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