Zen Technologies designs and manufactures defence technology solutions — training simulators, counter-drone systems, unmanned ground vehicles and smart ammunition — and heads into its Q2 FY 2026-2027 print with the sector watching whether post-Operation Sindoor procurement converts into orders. The quarter will speak to two things: whether revenue ramps as management has guided (weighted to Q2 and Q3 FY27) and whether operational EBITDA margin recovers from Q1's 27.3% toward the mid-30s full-year target.
| Results date | October 31, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 141.64 Cr (Q1 FY27, down 10.48% YoY and 20.46% QoQ) |
| Previous quarter PAT | Rs. 34.46 Cr (adjusted for non-controlling interest, 24.3% margin) |
| Previous quarter EBITDA margin | 27.3% (operational EBITDA margin; total EBITDA margin 40.9%) |
| Market cap | Rs. 13,944.35 Cr |
| CMP | Rs. 1,544.7 |
The board is scheduled to meet on Saturday, Oct 31, 2026, to approve standalone and consolidated unaudited results for Q2/H1 FY27 (period ended Sept 30, 2026). The trading window remained closed from Oct 1, 2026 until 48 hours after the results.
The Q2 FY27 print is the first proof point of management's promise that revenue is weighted towards Q2 and Q3 FY27, given the order book was largely secured from October 2025 with a 12-month execution cycle and the majority of the book converts from Q2 FY27 onwards. Order flow has started to build — a Rs. 177.50 Cr simulator order in July 2026 and a Rs. 295 Cr Ministry of Defence simulator order announced August 10, 2026, on top of the Rs. 1,239.02 Cr consolidated order book at June 30, 2026 — with CMD Ashok Atluri saying in September that held-back simulator orders "have since started flowing in, with the company securing over Rs. 600 crore worth so far", though he noted simulator order delays are "still persisting". Margin recovery is the swing factor: Q1's 27.3% operational EBITDA margin was attributed to negative operating leverage on a fixed cost base, with gross margin stable at 72.9%, and management has reaffirmed a mid-30s full-year FY27 operational EBITDA margin alongside long-term targets of 35% operational EBITDA and 25% PAT margins. Working capital is the other overhang — the consolidated cycle stood at 257 days at June 30, 2026 against 140–150 day long-term guidance — and an execution-heavy Q2 should begin releasing supplier advances and inventory built for FY27 order execution. The call is also likely to cover progress toward the ~Rs. 2,500 Cr end-FY27 order book target and conversion of the Rs. 700–800 Cr simulator order pipeline.
Guidance scorecard: revenue ramp and margin recovery: Q2 is the first test of the promised execution ramp off Q1's Rs. 141.64 Cr base.
Order conversion and subsidiary targets: Several order-flow promises fall due around this quarter.
Order book trajectory and composition: From Section 2 operating metrics.
Risks and headwinds to monitor: Management-flagged items relevant to this quarter.
The CFO attributed the YoY margin drop to provision reversals of Rs. 7.65 Cr that inflated the Q1 FY26 base (adjusted Q1 FY26 margin ~35%) and to negative operating leverage on a fixed cost base, with in-quarter absorptions of Rs. 2.88 Cr warranty provisions and Rs. 4.25 Cr incremental R&D. Management reaffirmed the mid-30s FY27 exit margin, saying margin is "a function of revenue timing and operating leverage, not of any structural change".
The consolidated order book stood at Rs. 1,239.02 Cr at June 30, 2026 (equipment Rs. 920.59 Cr + AMC Rs. 318.43 Cr), and management characterised it as around Rs. 1,400 Cr including the July 2026 Rs. 177.50 Cr simulator order. The target is an order book of ~Rs. 2,500 Cr by end-FY27, contingent on government procurement converting the pipeline.
The Chairman said on the Q1 FY27 call that these orders "may materialize very much, much sooner than Q2 and Q3". As of September 2, 2026, the CMD said simulator orders held back after Operation Sindoor had started flowing in, with over Rs. 600 crore secured so far, though delays were "still persisting".
Q1 FY27 operational EBITDA margin printed at 27.3% against the mid-30s full-year FY27 guidance, which management reaffirmed on the July call. The long-term guidance of 35% operational EBITDA and 25% PAT margins was also reiterated as intact.