Zen Technologies shares rally 9% after Q2 profit rises 51% YoY, revenue nearly doubles

Revenue from operations also rose 98% to Rs 345 crore from Rs 174 crore in the year-ago period.Zen Technologies recorded an order inflow of Rs 481.81 crore during the quarter, taking its consolidated order book to Rs 1,375.70 crore as of September 30, 2026. The growing order book reflects sustained demand across the company's product categories, while faster execution supports the conversion of orders into revenue.The company said the favourable domestic defence procurement environment is also supporting demand.

The Defence Acquisition Council recently accorded Acceptance of Necessity (AoN) to several capital acquisition proposals, around 82% of which are earmarked for procurement from the domestic defence industry. These include categories in which Zen Technologies has a product presence. Here’s why Jefferies, others analysts see up to 47% upsideLive EventsWith the government continuing to prioritise indigenisation in defence procurement, Zen Technologies' ownership of its core technologies could strengthen its position in the evolving domestic defence market.Commenting on the performance, Ashok Atluri, Chairman and Managing Director of Zen Technologies, said the company recorded its highest-ever consolidated quarterly revenue of Rs 345.13 crore, marking 98.8% YoY growth, along with an operational EBITDA margin of 38.2%.He added that Zen Technologies has started delivering orders received under the Fast Track Procurement route last year ahead of their contractual timelines.

According to Atluri, ownership of its core technology allows the company to modify products quickly in response to changing Army requirements without depending on foreign licensors.He further said that this ability to respond faster to evolving operational requirements, coupled with the government's increasing focus on indigenisation, positions the company to pursue emerging opportunities in the domestic defence sector.

The company currently has a market capitalisation of Rs 14,341 crore, while its 52-week high stands at Rs 2,043.On the technical front, Trendlyne data shows that Zen Technologies is trading above seven of its eight simple moving averages (SMAs).Both foreign institutional investors (FIIs) and mutual funds increased their stakes in the company during the September 2026 quarter. FIIs raised their holdings from 6.47% to 6.60%, while mutual funds increased their stake from 7.55% to 7.71%.Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

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