Zen Technologies Expects FY27 Revenue Above Rs 1,300 Crore

Zen Technologies Limited expects FY2027 revenue to exceed Rs 1,300 crore after reporting record consolidated revenue from operations of Rs 345.1 crore in Q2 FY2027, up 98.8% year on year. Management said on November 2, 2026 that it could achieve its previous Rs 1,200 crore to Rs 1,300 crore range “very easily,” supported by a Rs 1,375.7 crore order book.

Why does Zen Technologies expect FY2027 revenue above Rs 1,300 crore?

Zen Technologies expects FY2027 revenue to be modestly above Rs 1,300 crore because management said it was comfortable achieving the previous Rs 1,200 crore to Rs 1,300 crore range very easily. The company had reported Rs 486.8 crore in consolidated revenue from operations in H1 FY2027, leaving the remaining execution to Q3 and Q4. Its chairman and managing director said the next couple of quarters should be healthy based on the orders already in hand.

The outlook is based principally on execution of current orders rather than unawarded procurement opportunities. Zen Technologies reported a consolidated order book of Rs 1,375.7 crore on September 30, 2026, consisting of Rs 995 crore in equipment orders and Rs 380.7 crore in annual maintenance contract, or AMC, orders. Management said its typical execution period after an order is received is 12 to 18 months, and it did not foresee delays in executing the order book then in hand.

How did Zen Technologies achieve record Q2 FY2027 revenue?

Zen Technologies achieved its record Q2 FY2027 revenue through faster order-book execution, including some work that had moved from Q1 into the second quarter. Revenue from operations reached Rs 345.1 crore, compared with Rs 173.6 crore in Q2 FY2026 and Rs 141.6 crore in Q1 FY2027. Management said there was no deferment from Q2 itself and that it executed the revenue promised for the quarter.

Management attributed the higher pace to streamlined operations, better visibility on bottlenecks and new processes introduced by the operations team. The chairman said the company could execute twice the size of current orders if required, describing an operational capability rather than giving a revenue forecast. Management had previously expected Q2 and Q3 to carry more revenue weight, reflecting delivery of orders accumulated since the prior year.

What changed in Zen Technologies’ margins and costs?

Zen Technologies reported a Q2 FY2027 operational earnings before interest, tax, depreciation and amortisation, or EBITDA, margin of 38.2%, up from 37.3% a year earlier and 27.3% in Q1 FY2027. Operational EBITDA was Rs 132 crore, while profit after tax attributable to shareholders rose 50.7% year on year to Rs 89.5 crore from Rs 59.4 crore. H1 FY2027 operational EBITDA margin was 35.1%.

Management retained its full-year operational EBITDA margin guidance in the mid-30s, saying the H1 result was in line with that range. Employee benefit and other expenses together were 24.4% of Q2 revenue, down from 26.3% a year earlier, despite higher spending in absolute terms. Costs included performance incentives, additional research and development, or R&D, staffing in artificial intelligence and emerging products, and Rs 9.3 crore of additional warranty provision from a higher anti-drone systems, or ADS, mix.

Can Zen Technologies’ order book support the higher revenue outlook?

Zen Technologies’ order book supports the FY2027 execution outlook because Q2 order inflows exceeded the revenue executed during the quarter. The company secured Rs 481.8 crore of new orders in Q2 FY2027 while executing Rs 345.1 crore, increasing its consolidated order book from Rs 1,239 crore at the beginning of the quarter to Rs 1,375.7 crore on September 30, 2026. Equipment orders accounted for Rs 995 crore of the closing order book.

The order book does not provide a precise outlook for FY2028 or confirm the previously discussed Rs 4,000 crore two-year revenue ambition. Management said that result depended on government procurement processes and orders being received. It said simulator orders worth more than Rs 400 crore could materialise earlier, while most potential new orders over the following six to nine months were expected to be counter-drone systems.

What could delay order inflows or cash conversion for Zen Technologies?

Zen Technologies faces uncertainty over counter-drone order timing because Fast Track Procurement, or FTP, requests for proposal, or RFPs, had not been issued as of November 2, 2026. Management expected RFPs in the coming weeks or months and said the FTP process was generally scheduled to conclude by March 31, 2027. It identified Q4 FY2027 as the earliest expected point for awards, while a delay could push them into Q1 or, in the worst case management cited, Q2 FY2028.

Cash conversion also moved in the opposite direction during H1 FY2027 as execution accelerated. The working-capital cycle rose to 379 days on September 30, 2026, from 255 days at the end of Q1, mainly because of recent receivables and higher advances to suppliers for scheduled deliveries. Management said H1 operating cash flow was negative because of that build, while inventory days declined and the debt-free company held about Rs 968 crore in cash and bank balances.

How is Zen Technologies preparing for revenue beyond FY2027?

Zen Technologies is spending on products that management expects to contribute in later years, but these programmes were not part of the reported Rs 345.1 crore Q2 FY2027 revenue. Management said FY2027 R&D spending should be near FY2026’s 12% of revenue, directed toward robotics, artificial intelligence, anti-drone systems and upgrades to existing products. It also budgeted about Rs 150 crore of capital expenditure in FY2027 and a similar amount in FY2028.

Hyper Strike had no orders in the September 30, 2026 order book, and management expects initial revenue from the programme to begin in FY2028. The planned capacity is 15,000 units a month, or 180,000 units a year at full scale, although the production ramp is expected to start at about 600 units a month. Management said the first orders should come in FY2028, with the larger ramp expected in FY2029.

Conclusion

Zen Technologies’ higher FY2027 revenue confidence rests on record Q2 execution, H1 revenue of Rs 486.8 crore and an order book of Rs 1,375.7 crore. Revenue increased from Rs 141.6 crore in Q1 to Rs 345.1 crore in Q2 as the company delivered accumulated orders, while H1 operational EBITDA margin of 35.1% aligned with management’s mid-30s full-year guidance.

The next disclosures to watch are FTP RFPs and any counter-drone order awards, which management said could arrive in Q4 FY2027 but could extend into FY2028. Investors can also monitor whether the remaining revenue needed to exceed Rs 1,300 crore is delivered through Q3 and Q4, and whether the 379-day working-capital cycle declines as receivables are collected.