Shares of Zen Technologies Ltd. declined more than 10% in early trading on Monday due to disappointing first-quarter earnings. The company reported a decrease in revenue and a significant contraction in operating margins. By 10:50 am, the stock had fallen by 10.39% to an intraday low of Rs 1,585.55 on the BSE before recovering slightly to trade at Rs 1,688.95, down 4.55%.
Investor focus has now shifted to the company’s order book and management’s projections for the remainder of the fiscal year. Revenue from operations for the April-June quarter dropped by 10.5% year-on-year to Rs 142 crore, down from Rs 158 crore in the same period last year.
The company’s operating performance also weakened, with EBITDA declining by 38.8% to Rs 38.7 crore from Rs 63.3 crore a year earlier. The EBITDA margin saw a significant decrease to 27.3% from 40% in the corresponding quarter of the previous fiscal year, indicating increased pressure on profitability despite a relatively modest revenue decline.
Net profit fell by 27.8% to Rs 34.5 crore from Rs 47.8 crore in the same period last year. The company attributed part of this decline to a one-time loss of Rs 3.4 crore. Additionally, the board approved a two-year extension for utilizing the proceeds raised through its qualified institutional placement (QIP), which was conducted in August 2024.
Zen Technologies Ltd. stock hit an intraday low of Rs 1,585.55 on Monday. Over the past 52 weeks, the stock has traded between Rs 1,224 and Rs 2,023.40 on the BSE.
