Q1 2027 Zen Technologies Ltd Earnings Call Transcript
Key Points
- Zen Technologies Ltd (BOM:533339) reported a consolidated revenue of INR141.6 crore for Q1 FY27, aligning with expectations and maintaining delivery schedules.
- The company has a strong order book of INR1,239 crore as of June 30, 2026, with a recent addition of INR177.5 crore from the Ministry of Defence.
- Zen Technologies Ltd (BOM:533339) remains debt-free with a robust liquidity position, holding cash and bank balances of approximately INR1,217 crore.
- The company is expanding its market reach, targeting North American and EU markets, and has identified a $10 billion addressable market in the US for its products.
- Zen Technologies Ltd (BOM:533339) is actively pursuing acquisitions to enhance its capabilities and revenue potential, with a focus on cutting-edge technologies.
- The company's Q1 FY27 revenue decreased compared to both Q4 FY26 and Q1 FY26, reflecting a challenging start to the fiscal year.
- Operational EBITDA margin declined to 27.3% from 40.9% in Q1 FY26, impacted by negative operating leverage and fixed cost absorption.
- A one-off exceptional loss of INR3.4 crore due to a fire incident affected the profit after tax for the quarter.
- The working capital cycle increased to 257 days, driven by a buildup in advance to suppliers and inventory.
- The company faces demand-related challenges, with no recent tenders for anti-drone systems and simulators, affecting order flow.
Portions of this transcript marked (audio in progress) indicate audio problems. The missing text will be supplied if a replay becomes available.
(audio in progress) That this conference is being recorded. I now hand over the conference to Abhishek Mehra from TIL Advisors.
Welcome everyone and thank you for joining this Q1 FY27 earnings conference call of Zen Technologies Limited. The results and investor updates have been emailed to you and are also available on the stock exchanges. In case anyone does not have a copy of the same. Please do write to us and we'll be happy to send it over to you.
To take us through the results of the quarter and answer your questions we have with us today, Mr. Ashok Athluri, Chairman and Managing Director; Mr. Hari Haran Chalat, Chief Financial Officer; and Ms. Abhilasha Athluri, Head of Investor Relations.
We'll be starting the call with a brief overview of the performance, which will be followed by the Q&A session.
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