Total revenue came in at Rs 198.9 crore, declining 20.6% YoY from Rs 250.3 crore a year earlier, but up 10.5% QoQ from Rs 180 crore in Q1 FY26.

EBITDA stood at Rs 90.05 crore, nearly flat YoY compared with Rs 88.5 crore in Q2 FY25 and up 4.1% QoQ from Rs 86.5 crore in Q1 FY26.

EBITDA margin expanded sharply to 51.9% from 36.6% a year ago but narrowed from 54.7% in Q1 FY26.

Profit before tax (PBT) stood at Rs 82.3 crore, nearly unchanged YoY from Rs 82.4 crore, while rising 7.3% QoQ from Rs 76.7 crore in Q1 FY26.

Total operating expenses fell 32.7% YoY to Rs 108.8 crore, reflecting strong cost control.

Operational EBITDA (excluding other income) was Rs 65.5 crore, down 18.43% compared with Rs 80.3 crore in Q2 FY25 and almost flat compared with Rs 65.9 crore in Q1 FY26. This translated to an operational margin of 37.8%, down from 41.7% in the preceding quarter and 33.21% in the same quarter last year.

Interest costs declined to Rs 2.04 crore from Rs 2.26 crore last year, while depreciation stood at Rs 5.71 crore, higher than Rs 3.84 crore in Q2 FY25.

The total order book as at 30th September 2025 stood at Rs 675.04 crore.

Ashok Atluri, chairman and managing director, said the company's Q2 revenue and profit were impacted by procedural delays in order finalisations. The fundamentals of our business remain solid, with strong liquidity and increasing value addition from subsidiaries. Looking ahead, we expect stronger subsidiary contributions as execution scales up and synergies are fully realised.

Zen's financial position remains robust with liquidity of over Rs 1,100 crore as of 30 September 2025.

In the aftermath of Operation Sindoor, the Government of India initiated a series of emergency procurement measures to address immediate operational requirements. As a result, the closure timelines for certain regular Requests for Proposals (RFPs) have been temporarily delayed. This development is procedural in nature and does not impact the underlying demand or long-term revenue visibility. The deferred orders remain active within the procurement system and are expected to be released in due course. We remain confident that the temporary headwinds being witnessed in FY26 will give way to a stronger performance in the years ahead, Atluri noted.

Zen Technologies provides defence training and anti-drone solutions. It builds training systems for imparting defense training and measuring combat readiness of security forces. With a dedicated R&D (recognized by the Ministry of Science and Technology, Government of India) and production facility in Hyderabad, the company has applied for over 180+ patents and shipped more than 1,000 training systems around the world.

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