Zen Technologies shares plummet 33% in 3 days; here's the reason

Zen Technologies in Tuesday's trade (February 18) extended their losing streak to the third straight day. At around 11:05 am, the stock traded weak by over 8 per cent or Rs 89.95 at Rs 989.45 apiece. Through the three-day fall, the stock has plummeted over 33 per cent.

Primarily, the slump in the drone manufacturer's share price is triggered amid weak set of earnings in the December quarter. For the reporting quarter, the company's net profit for the December quarter came in at Rs 38.62 crore, a 22 per cent rise from Rs 31.67 crore in the corresponding period of the previous year. Nonetheless, sequentially net profit almost halved from Rs 65.24 crore in the previous September quarter.

Revenue also increased 44 per cent year-on-year (YoY) to Rs 141.52 crore as against Rs 98.08 crore in the same period last year. However, revenue declined 41 per cent sequentially from Rs 241.69 crore in the September quarter on account of delay in shipments as well as a shift in revenue booking to the December quarter.

As per Zee Business research inputs, margins during the review quarter at the company remained under pressure due to the company's product mix.

Furthermore, with a liquidity of Rs 1,000 crore. the defence training as well as anti-drone solutions provider has plans for acquisition. Through the proposed acquisitions, the company plans to foray into marine simulator.

Earlier on Monday (February 18, 2025), the company announced the acquisition of Applied Research International (ARIPL) and ARI Labs (ALPL) at a price consideration of Rs 130 crore.

Zen Technologies share price

Zen Technologies in the last one year