Zen Technologies Share Price 2025: Q1 Fallout, Target Cuts & Future Outlook

Q1 FY26 Earnings Trigger Market Slide

Zen Technologies reported a steep downturn in quarterly earnings for Q1 FY26, leading to investor volatility:

• Revenue down ~38–57% YoY, depending on source, due to order deferral and weak inflows.

• Net profit fell ~38–50% YoY, from ₹76.81 crore to ₹47.75 crore.

• EBITDA margin dropped to ~40.9%, a ~200‑bp decline.

Investors reacted rapidly. Within two days of results, shares fell nearly 9% to ₹1,603; within six sessions, the total correction hit 23.8%, down to ₹1,447 .

Share Price Slide: Timeline & Data

Pattern of Decline:

• July 28: Opened at ₹1,688, hit lower circuit of 5% by close .

• July 29–30: Slides continued, culminating in ₹1,523 (≈–20% in 5 sessions).

• July 31: Another 5% fall landed share at ₹1,447—total ~24% drop since Jul 24 high of ₹1,908.

Present trading levels hovered between ₹1,536–1,603, down approximately 9% over the past month, with a 52‑week high/low of ₹2,627/₹946.

Broker Reactions: Target Revisions & Ratings

Brokerages swiftly downgraded Zen following Q1 concerns:

ICICI Securities:

• Downgraded to Hold, slashed target to ₹1,700 (from higher earlier estimates).

• Cited execution delays due to design changes in a key project and weak order inflows.

Motilal Oswal (MOFSL):

• Revised target to ₹1,650 from ₹1,850, cutting FY26/27 earnings estimates.

• Expect order inflows to resume from Q2 FY26.

Nuvama Institutional:

• Reduced EPS projections by 8%/19%, valuation multiple from 45x to 40x.

• Revised target to ₹1,800 from previous ₹2,170 .

Consensus average target among analysts now sits around ₹1,700–1,800, with Hold or muted Buy ratings prevailing .

Why Did Q1 Disappoint? Order Book & Margins Fail to Impress

Order Book Shrinks:

• Order backlog dropped to ₹754 crore (~0.7x FY25 sales), down from ₹1,160 crore in June 2024.

• Order inflows in Q1 were particularly weak; a ₹60–70 crore order got deferred due to design specification changes.

Profitability Under Pressure:

• Revenue dropped ~38%; EBITDA down ~42%; margins down 200 basis points; PAT fell ~38–50% to ₹47–53 crore.

Broader Sector Weakness:

• Defence index weakness also weighed on sentiment; Zen fell more steeply than peers due to order visibility concerns.

 Long-Term Business Potential & Risk Factors

Growth Drivers Ahead:

• Management maintains target of ₹6.5 billion in order inflows by H1 FY26, buoyed by expected anti-drone system deals and international exports (US/NATO).

• Company aims for 50% revenue CAGR, 35% EBITDA margin, 25% PAT margin over 2–3 years .

Risks to Monitor:

• Execution delays continue to weigh on growth.

• Orderbook remains slim relative to past levels.

• High P/E (~52–55x) suggests the stock is priced for perfection .

• Reliant on government defense capex policy and global geopolitical developments.

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FAQs

1. What is the current share price of Zen Technologies?
As of August 1, 2025, the stock trades at around ₹1,536–₹1,603, down ~9% in one month.

2. Why did the share price fall over 20% recently?
A weak Q1 report with lower-than-expected order inflows, execution delays, and revenue/profit decline triggered sharp investor sell-off .

3. What is the revised target price and rating?
ICICI and MOFSL downgraded Zen to Hold with a target of ₹1700 and ₹1650 respectively; Nuvama and others offer targets up to ₹1,800.

4. Is the Q1 setback temporary?
Management expects order inflows to pick up from Q2 FY26. Core financial metrics remain strong, but revenue visibility is weak short-term .

5. Should investors buy or stay cautious?
Given the stock’s multiple risks, analysts suggest a conservative stance. Those willing to wait may consider accumulating near ₹1,500–₹1,600 if fundamentals recover.

Helpful Resources

• Moneycontrol – “Hold Zen Technologies: Target of ₹1,700: ICICI Securities” (Moneycontrol)

• Economic Times – “Zen Technologies shares slump 9% in 2 days post Q1 results” (The Economic Times)

• Business Today – “Shares crash 24% in 6 sessions; here’s what brokerages say” (Business Today)

• Business Today – “Slips into bear grip, down 20% in 5 days; what’s next?” (Business Today)

• ScanX / Yahoo – Zen Technologies Q1 Profit Decline Report (scanx.trade)

Conclusion

Zen Technologies has delivered a disappointing Q1 FY26 performance, triggering a sharp share price correction of nearly 24% in just a week. While brokerages like ICICI, MOFSL and Nuvama have revised targets downward—centered around ₹1,650–₹1,800—the company continues to eye recovery through stronger order inflows, anti-drone systems, and export wins. With the current valuation priced for high growth, risks remain elevated. The stock may yet regain momentum if Q2 brings renewed orders, but investors should tread carefully and monitor upcoming business triggers and government defence spending trends closely.