Zen Technologies Share Price Drops 25% in 3 Months, 47% From Peak

Market Performance

Zen Technologies share price has been under heavy selling pressure in recent months. The stock has corrected 25% in the last three months, slipping to around ₹1,420.

• In July alone, the share price plunged 26%, and the weak trend has continued through August.
• From its recent peak of ₹2,627 per share, Zen Technologies has lost nearly 47% of its value, making it one of the weakest performers in the defence sector in 2025.

Main News

The fall in Zen Technologies share price has been largely attributed to slowing order inflows and weak financial performance. Investor sentiment remains subdued, with little indication of a near-term recovery.

Mutual funds have also trimmed their exposure to the stock:

• June Quarter (Q1 FY26) – Mutual funds collectively held 6.77% stake
• March Quarter (Q4 FY25) – Mutual fund holding was 7.70%

This 1% reduction in institutional holding highlights the declining confidence in the company’s near-term growth.

Company Details

Zen Technologies, a drone and defence equipment manufacturer, has been struggling with a thinning order book.

• Order backlog (June 2025 quarter): ₹7.54 billion (0.7x FY25 sales)
• Order backlog (June 2024 quarter): ₹11.6 billion

Breakdown of current orders:

• AMC (Annual Maintenance Contracts): ₹2.6 billion
• Equipment orders: ₹3.5 billion
  • Simulator orders: ₹2.8 billion
  • Anti-drone systems: ₹640 million

The slowdown in inflows over the past 15 months has raised concerns over execution visibility and growth momentum.

Despite these challenges, Zen Technologies expects new simulator orders worth ₹6.5 billion in the ongoing quarter, which could improve order execution in the second half of FY26.

Financial Performance (June Quarter FY26)

Zen Technologies reported weak earnings for the June quarter, missing on both revenue and profitability metrics:

• Revenue: ₹1.1 billion, down 56% YoY
• Reason: Deferred revenue of ₹500–700 million due to design modifications in a major equipment order

This sharp decline in revenue has added to investor concerns, keeping Zen Technologies share price under pressure.

Summary

Zen Technologies share price has faced a steep correction of 47% from its recent peak, led by weak financial results, declining order inflows, and reduced institutional holdings.

While the company has signaled optimism about fresh simulator orders worth ₹6.5 billion, the near-term performance remains clouded by execution delays and order pipeline challenges.