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4d ago

Zen Technologies Slips Into Bear Grip With 20% Five-Day Rout

Execution delays combined with disappointing Q1 earnings have led analysts to cut price targets, driving the stock into lower circuits.

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Zen Tech share price targets cut after soft Q1; key trigger ahead
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Overview

  • The company’s Q1 FY26 net profit plunged 38% year-on-year to Rs 47.75 crore, revenue fell 37.9% to Rs 158.22 crore and EBITDA dropped 42% to Rs 64.70 crore, squeezing margins by 208 basis points.
  • Shares hit the lower circuit for a second consecutive session on Wednesday, sliding as low as Rs 1,523.55 and marking a cumulative 20% decline since July 23.
  • Brokerages MOFSL, Nuvama and ICICI Securities slashed earnings estimates and trimmed price targets to between Rs 1,650 and Rs 1,700, each downgrading the stock to neutral or hold ratings.
  • Zen’s consolidated order backlog shrank to Rs 754 crore in June, extending a fifth straight quarter of slowdown and stoking concerns over near-term revenue visibility.
  • The Nifty Defence index has fallen over 5% in the past week, highlighting sectorwide weakness even after Bharat Electronics delivered a strong Q1 performance.