Zen Technologies Ltd.
NSE: ZENTECZen Technologies Ltd.: A 30-second snapshot
Zen Technologies (ZENTEC) is a defence-electronics and anti-drone systems company trading at ₹1,554.9 as of the run date, with a trailing PE of 72.5 that compresses to a forward PE of 30.2. Q4 FY26 results reported a 69% YoY decline in consolidated PAT (₹32 crore) and a 45% YoY revenue decline, prompting analyst consensus to revise 2027 estimates downward. The stock is 31.4% below its 52-week high but has recovered 15.8% over the past 3 months, trading above both the 50-DMA (₹1,510) and 200-DMA (₹1,433).
P/E
72.5
Forward P/E
30.2
ROE
—
Debt / Equity
0.98
Profit Margin
+31.5%
Div. Yield
+0.1%
5Y ROE > 15%
2/5
5Y FCF > 0
2/5
Quality
58/100
News
8 headlines · 2 positive · 4 negative
Zen Technologies Launches AI-Powered Defence And Anti-Drone Systems - HDFC Sky
HDFC Sky
Zen Technologies Q4 results: Cons PAT falls 69% YoY to Rs 32 crore; revenue down 45% - The Economic Times
The Economic Times
Need To Know: The Consensus Just Cut Its Zen Technologies Limited (NSE:ZENTEC) Estimates For 2027 - simplywall.st
simplywall.st
Defence stocks update: Zen Tech, Mazagon Dock shares fall up to 10% after Q4 results - CNBC TV18
CNBC TV18
Defence Stocks Jump as Zen Tech, Mazagon Dock Rally on Germany Visit - HDFC Sky
HDFC Sky
Recent context
- ·Q4 FY26 results (reported May 2026) showed consolidated PAT of ₹32 crore — down 69% YoY — and revenue down 45% YoY; shares fell alongside defence peer Mazagon Dock following the announcement.
- ·The company launched AI-powered defence and anti-drone systems in May 2026, and defence stocks including ZENTEC rallied on news of a German defence delegation visit in late April 2026 — indicating near-term price sensitivity to both earnings outcomes and policy/geopolitical catalysts.
- ·Analyst consensus of 1.83 across 6 analysts (1–5 scale, lower = more constructive) was accompanied by a reported cut to 2027 forward estimates; with a small coverage universe, further revisions or initiations could move the consensus materially.
Strengths
- +5-year revenue CAGR of 16.8% and earnings CAGR of 37.8% reflect strong multi-year growth momentum in the defence sector, even as the most recent quarter showed a sharp decline.
- +Profit margin of 31.5% is indicative of high-value product mix; the company recently launched AI-powered defence and anti-drone systems, consistent with expanding its technology portfolio.
- +Trailing PE of 72.5 compresses to a forward PE of 30.2 — a gap that, if the underlying earnings trajectory recovers, would represent a significant multiple re-rating relative to current price.
- +ZENTEC ranks 1st of 6 peers on quality score (57/100) within the Infrastructure sector grouping, ahead of BEL (57), ABB (47), CGPOWER (45), Cummins (24), and LT (26).
Weaknesses
- −Q4 FY26 consolidated PAT declined 69% YoY to ₹32 crore and revenue fell 45% YoY — the steepest quarterly deterioration in the recent period; analyst consensus subsequently cut 2027 estimates.
- −FCF was positive in only 2 of the available years and ROE exceeded 15% in only 2 of the available years; ROE is not currently reported, limiting earnings-quality assessment. Consistency score of 59/100 reflects an incomplete quality track record.
- −Debt-to-equity of 0.976 carries a rising trend flag; rising leverage coinciding with a revenue decline compresses financial flexibility and increases sensitivity to order-flow timing.
- −Stock sits 31.4% below its 52-week high; resistance is identified at ₹1,825 (17.4% above current price), indicating the drawdown from the prior peak has not been recovered.
Open questions
- ?Does the 5-year earnings CAGR of 37.8% reflect a durable structural position in Indian defence procurement, or is it concentrated in a few large government orders that may not recur at the same rate?
- ?How much of the Q4 PAT decline stems from project-revenue lumpiness typical in government-contract defence businesses versus a structural shift in order intake or margins?
- ?At a forward PE of 30.2, what annual earnings growth rate is embedded in that multiple, and how does the current order book or guidance support — or challenge — that implied growth?
- ?Given rising D/E (0.976, trending up) alongside a 45% revenue decline in Q4, what is the company's near-term debt-service capacity relative to its operating cash flow run-rate?
Peer comparison: Infrastructure
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ZENTEC | Zen Technologies Ltd.You're viewing | 72.5 | — | 57 |
| Industry avg | across 5 peers | 69.5 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.8 | — | 57 |
| ABB | ABB India Ltd. | 87.0 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.7 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.7 | — | 24 |
Technical state
Current price
₹1,554.90
SMA 50
₹1,510.32
SMA 200
₹1,433.26
RSI (14)
47.2 (neutral)
From 52w high
-31.4%
1Y return
+0.4%
3M return
+15.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highQ4 PAT fell 69% YoY to ₹32 crore and revenue declined 45% YoY — a sharp single-quarter deterioration; forward PE of 30.2 implies a recovery in earnings that has not yet materialised in reported results.
- mediumFCF was positive in only 2 of available years and ROE exceeded 15% in only 2 of available years; ROE is not currently reported, making it impossible to benchmark earnings quality against sector peers. Consistency score of 59/100 reflects a limited quality track record.
- mediumDebt-to-equity of 0.976 with a rising trend; for a defence-tech business with lumpy revenue, rising leverage coinciding with a steep revenue decline heightens near-term balance-sheet risk.
- mediumStock is 31.4% below its 52-week high of approximately ₹2,265. Despite recovering above the 50-DMA (₹1,510) and 200-DMA (₹1,433) in the 3-month window (+15.8%), the peak-to-trough drawdown is substantial and resistance stands at ₹1,825 — a further 17.4% above current price.
- lowAnalyst consensus is 1.83 across only 6 analysts (1–5 scale, lower = more constructive); thin coverage raises the risk of abrupt estimate revisions. Per recent news, the consensus cut its 2027 estimates following Q4 results.
Cross-section contradictions
- Trailing PE of 72.5 is elevated relative to Infrastructure sector peers LT (33.4) and Cummins (66.7), yet forward PE compresses sharply to 30.2 — a 58% contraction implying substantial earnings acceleration. Q4 results showing a 69% PAT decline and analyst consensus estimate cuts for 2027 move in the opposite direction from what is needed to justify that forward multiple.
- Stock has gained 0.43% over 1 year and sits above both its 50-DMA and 200-DMA, yet is 31.4% below its 52-week high — indicating a steep intra-year decline followed by a partial recovery, with the full-year return masking peak-to-trough magnitude.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days