Zen Technologies Delivers Record-Breaking FY25; What About Its Valuation?

Published 18-05-2025, 07:14 pm
© Reuters.

Zen Technologies Limited has reported a blockbuster financial performance for Q4 and FY25, notching up its highest-ever quarterly and annual results. The company posted a Q4FY25 revenue of INR 317.85 crore, more than doubling from INR 138.04 crore in Q4FY24. Full-year revenue surged to INR 988.45 crore, a stunning 122% jump from INR 444.21 crore last year, comfortably surpassing its own FY25 guidance.

EBITDA for Q4FY25 came in at INR 118.73 crore, with a margin of 40.45%, while full-year EBITDA reached INR 371.50 crore, translating to a margin of 37.6%. PAT (Profit After Tax) stood at INR 262.95 crore for FY25, doubling from INR 129.23 crore in FY24, with PAT margins of 26.6%, exceeding the company’s guided 25% target.

In a media statement, Chairman and MD Ashok Atluri credited the strong results to disciplined execution, marquee defence orders, and expansion into futuristic technologies. “Zen has delivered its best-ever financials. We are proud to have bagged a large Ministry of Defence order for Integrated Air Defence Combat Simulators (IADCS) for the L70 gun, which we plan to execute this year,” he said.

The company has also aggressively pursued strategic acquisitions, positioning itself deeper into next-gen defence tech:

Acquired 76% in ARIPL, a marine and naval simulation specialist

Took 51% stake in Vector Technics, a key domestic drone component manufacturer

Picked up 45.33% in Bhairav Robotics, focusing on autonomous weapons systems

Additionally, Zen is investing INR 70 crore to expand its R&D capabilities, with a sharper focus on counter-drone systems and advanced training solutions for India’s evolving defence needs.

Should Investors Jump In?

Image Source: InvestingPro

Despite the solid performance and optimistic outlook, Zen’s current market price of INR 1,794.8 appears stretched. According to InvestingPro’s Fair Value tool, the stock’s realistic valuation stands at INR 1,666.2, implying a 7.2% downside.

The InvestingPro platform uses advanced, multi-model valuation techniques to provide a precise fair value estimate for listed companies. This tool is ideal for investors looking to make informed, data-backed decisions — and with a limited-time discount of up to 45%, it’s an opportunity worth exploring.

While Zen Technologies continues to be a strong thematic play on India’s defence modernization, investors should weigh current valuations against future growth prospects — and tools like InvestingPro can make that evaluation smarter and faster.

Read More: Rs 10K Turned Into Rs 1L: A Strategy for Serious Investors

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