Zen Technologies fell as much as 9% to a day low of ₹1,613.60 on Monday after the defence firm posted a weak set of June quarter results.

The Hyderabad based company, known for its anti-drone and defence training systems, reported a 28% drop in net profit for Q1 FY27, coming in at ₹34 crore against ₹48 crore in the same quarter last year.

Revenue also slipped, falling 10.5% to ₹142 crore from ₹158 crore. The bigger concern for investors was the drop in operating profit. EBITDA fell 40% to ₹39 crore, and margins shrank sharply to 27.3% from nearly 41% a year ago.

Costs rose across the board during the quarter. Employee expenses climbed to 24% of revenue from 20%, manufacturing costs nearly doubled to 9% from 5%, and other expenses jumped to 21% from 10%.

Zen Technologies explained that this quarter reflects the early execution stage of a large order backlog, with most of the revenue expected to flow in from the second and third quarters of the year.

The company’s order book stood at ₹1,239 crore as of June 30, though that’s down around 7% from where it stood at the end of FY26. There have been a few updates since results were announced too.

The company said it received a fresh order worth ₹177.5 crore in July for upgrading Tank and Crew Gunnery Simulators, which isn’t included in the June 30 order book figure.

A day before results, on July 26, Zen Technologies also launched a High-Altitude Man-Portable Anti-Drone System timed to Kargil Vijay Diwas.

Separately, the board extended the deadline to use leftover funds from its 2024 QIP by another two years, now running until August 2028, though the company said the purpose of those funds remains unchanged.

As of 11:34 am on NSE, Zen Technologies shares were trading at ₹1,698, down 4% for the day.

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