Zen Technologies Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 345.13 Cr (+98.84% YoY) and PAT growth of +50.74% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 31, 2026 |
|---|---|
| Revenue (Q2) | Rs. 345.13 Cr (+98.84% YoY) |
| PAT (Q2) | Rs. 89.54 Cr (+50.74% YoY) |
| EBITDA margin | 38.24% (+94 bps YoY) |
| EPS (Q2) | Rs. 9.97 (+50.83% YoY) |
Q2 FY27 revenue of Rs.345.13 Cr nearly doubled YoY with operational EBITDA margin of 38.24% exceeding the mid-30s guidance, and the order book rose to Rs.1,375.70 Cr on ~Rs.481.81 Cr of derived intake. The offset is cash quality: H1 CFO was negative at (Rs.302.89) Cr with working-capital days at ~287.8 versus the 140–150-day guide, and gross margin fell to 62.65% sequentially. Execution of the promised Q2/Q3 ramp is on track, but cash conversion must inflect in H2 against the Rs.1,375.70 Cr book.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Q2 revenue | "likely ahead of the Q1 run-rate, on management's own phasing" | Rs.345.13 Cr (+143.67% QoQ) | Played out |
| Margins | "expanding if the promised conversion lands" | Operational margin 38.24% vs 27.34% in Q1 — above the mid-30s guide | Played out |
| Order book path toward ~Rs.2,500 Cr | depended on tender conversion | Rs.1,375.70 Cr (+136.68 QoQ); Rs.295 Cr Aug order GST-inclusive, inclusion basis not stated | Partially |
| Working capital | "should start releasing inventory/advances… not absorbing them" | Receivables Rs.478.88 Cr, inventory Rs.342.59 Cr — absorbed; H1 CFO (Rs.302.89) Cr | Contradicted |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 operational EBITDA margin "mid-30s" | Reaffirmed on the Q1 FY27 earnings call (July 2026) | Q2: 38.24%; H1: 35.07% | On Track |
| PAT margin 25% (long term) | FY26 annual report / Q4 FY26 call | Q2: 25.94%; H1: 25.47% | Met |
| Order book ~Rs.2,500 Cr by end-FY27 | Q1 FY27 earnings call (July 2026) | Rs.1,375.70 Cr at 30 Sep 2026 — needs large H2 inflows | On Track |
| Rs.4,000 Cr cumulative revenue FY27+FY28 | Q3 FY26 call (Feb 2026), reaffirmed in the FY26 annual report | H1 FY27: Rs.486.77 Cr | Too Early |
| Simulator pipeline Rs.700–800 Cr "sooner than Q2 and Q3" | Q1 FY27 earnings call (July 2026) | Derived Q2 intake ~Rs.481.81 Cr; plus Rs.177.50 Cr July and Rs.295 Cr August announced orders — conversion resumed | Partially tracking |
| Working capital 140–150 days (long term) | Q1 FY27 earnings call (July 2026) | ~287.8 days on a consistent proxy (vs 192.6 at Mar-26) | Missed |
| Revenue "weighted towards Q2 and Q3 FY27"; "we remain on track with our delivery schedules" | Q1 FY27 earnings call (July 2026) | Q2 revenue Rs.345.13 Cr, +143.67% QoQ | Confirmed |
| Margin compression "a function of revenue timing and operating leverage, not of any structural change" | Q1 FY27 earnings call (July 2026) | Operational margin recovered to 38.24% at scale — but gross margin fell to 62.65% from 72.89% QoQ — operating-leverage story held; gross-margin stability claim did not hold sequentially | Partially confirmed |
| "Orders will be accelerated… significant increase in orders received during FY2027" | Q1 FY27 earnings call (July 2026) | Derived intake ~Rs.481.81 Cr in Q2; book Rs.1,239.02 → Rs.1,375.70 Cr | Confirmed in direction |
| Gross margin ~72.9% "broadly consistent sequentially and YoY" | Q1 FY27 disclosures | 62.65% vs 72.89% QoQ (63.60% YoY) | Contradicted sequentially |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.