Zen Technologies reported a 98.8% surge in quarterly revenue to ₹345.13 crore, leading analysts to upgrade the stock with a ₹2,150 target. While the company's order book of ₹1,375.70 crore provides strong visibility, investors should track potential contract timeline shifts into FY28.
Zen Technologies has reported a strong performance for the second quarter of the 2027 fiscal year, prompting a positive outlook from analysts. Following the release of these results, Choice Institutional Equities upgraded the stock to a 'Buy' rating with a revised target price of ₹2,150. This adjustment reflects confidence in the company’s ability to execute its current pipeline, even as market participants weigh future risks.
The company’s financials showed a significant jump in activity. Revenue reached ₹345.13 crore, marking a 98.8% increase compared to the same quarter last year. Profit after tax rose by 50.7% to ₹89.54 crore. A key highlight for the quarter was the company's operating performance, with EBITDA margins settling at 38.2%. This margin stability is a critical factor that analysts often monitor to ensure that rapid growth does not come at the expense of profitability.
Driving this growth is a consolidated order book valued at ₹1,375.70 crore as of September 30, 2026. This order book provides the company with revenue visibility for the coming quarters. The company’s focus on its Counter-Unmanned Aerial Systems (CUAS) suite—which includes radar and jamming technology—remains a major contributor to its business model. By expanding its naval simulation portfolio and targeting new simulator opportunities, the firm is attempting to diversify its revenue sources beyond its core defense offerings.
While the outlook appears positive, the company faces specific industry risks. Analysts have pointed out that while the government's fast-track procurement channels are favorable, there is a risk that actual contract awards could be delayed, potentially pushing some revenue recognition into FY28. Furthermore, the company’s business is heavily dependent on domestic defense procurement policies. Any slowdown or change in government defense spending could directly impact order inflows.
From a valuation perspective, the recent target upgrade incorporates a higher valuation multiple of 35x, up from 30x, which analysts applied to account for the company's broader technology portfolio. On the stock market, Zen Technologies closed at ₹1,710.60 on November 3, 2026. Given the stock's recent price appreciation, investors are paying a premium for its growth expectations.
Moving forward, the key monitorables for shareholders will be the actual execution of the current order book and the speed at which new tenders are converted into confirmed contracts. Investors may also track management commentary on how the company plans to maintain its margins as it scales its operations to meet rising defense sector demand.