Zen Technologies Q2FY26 Concall Decoded: Drones Delayed, Drama Delivered(Because even the skies need debugging sometimes.)

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1. Opening Hook

Remember when Zen Technologies was everyone’s favorite defense stock with a ₹6,000 crore dream? Well, Q2FY26 arrived like a drone strike on that enthusiasm — no new orders, muted numbers, but plenty of patriotic conviction.

Chairman Ashok Atluri blamed the “delay in orders” on the government’s emergency procurement spree post Operation Sindoor. Translation: bureaucracy took a chai break just when Zen needed signatures.

Still, the man calls it “a question of when, not if.” Gotta love that optimism — especially when ₹650 crore of simulator orders are still “in transit.” Read on; the anti-drone king isn’t done fighting gravity yet. 😏

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2. At a Glance

• Revenue ₹124.6 Cr (↓48% YoY): From flight simulator to simulator stall.
• Operational EBITDA ₹42.1 Cr (34% margin): Margins up, mood down.
• PAT ₹46.2 Cr (↓29% YoY): Profits shrunk faster than defense paperwork moves.
• Consolidated Revenue ₹173.6 Cr (↓28% YoY): The empire slowed, but margins flexed.
• EBITDA Margin 52%: When you sell less but earn more — Zenomics 101.
• Net Cash ₹1,103 Cr: Defense without debt — Zen’s fortress balance sheet.
• Order Book ₹675 Cr: Equipment ₹375 Cr + AMC ₹300 Cr — not a war chest yet.
• Guidance: ₹6,000 Cr cumulative revenue still the holy grail — but “shifted right.”

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3. Management’s Key Commentary

Ashok Atluri (CMD):

“Results were not as encouraging as I’d want, and orders didn’t build up as expected.”
(Translation: the fax machine at MoD is still buffering.)

“Delay due to government’s focus on emergency procurement post-Operation Sindoor.”
(Translation: Everyone got new toys — except us.)

“Fundamentals unchanged; government now values indigenous IP.”
(Translation: We’ll win… eventually… once they read our brochure.)

“AI is an obsession; we are eating, drinking, breathing AI.”
(Translation: And hopefully selling it soon.) 🤖

“It’s not if orders come — it’s when.”
(Translation: CFO, please don’t panic yet.)

Afzal Malkani (CFO):

“Consolidated revenue down 28%, but EBITDA margin up to 52%.”
(Translation: fewer bullets, fatter margins.)

“We remain debt-free with ₹1,103 Cr cash.”
(Translation: If nothing else, we can simulate profits.)

“Strong liquidity, asset-light model.”
(Translation: At least Excel looks pretty.) 😏

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4. Numbers Decoded

Source table

Metric	Q2 FY26	YoY Change	One-Line Analysis
Standalone Revenue	₹124.6 Cr	↓48%	Simulator dreams hit bureaucratic turbulence.
Standalone EBITDA	₹64.8 Cr	↓26%	Margins defended better than borders.
PAT	₹46.2 Cr	↓29%	Profit fell but still impressive for a “muted” quarter.
Consolidated Revenue	₹173.6 Cr	↓28%	Group slowdown — even acquisitions couldn’t offset lull.
Consolidated EBITDA	₹90.0 Cr	↑2%	Margin alchemy: 52% despite degrowth.
H1 FY26 Revenue	₹331.8 Cr	↓33%	Slow half — waiting for defense budgets to fire.
Cash & Investments	₹1,103 Cr	—