Mumbai, July 27 (IANS) Shares of Zen Technologies Ltd. fell more than 10 per cent in early trade on Monday after the technology company reported a weak set of earnings for the first quarter of FY27, hurt by lower revenue and a sharp contraction in operating margins.
At around 10:50 am, the stock had plunged as much as 10.39 per cent to an intraday low of Rs 1,585.55 on the BSE. It later pared some losses to trade at Rs 1,688.95, down 4.55 per cent.
The disappointing quarterly performance has shifted investor attention to the company’s order book and management’s outlook for the rest of the financial year.
Revenue from operations declined 10.5 per cent year-on-year to Rs 142 crore in the April-June quarter, compared with Rs 158 crore in the same period last year.
The company’s operating performance also weakened, with EBITDA falling 38.8 per cent to Rs 38.7 crore from Rs 63.3 crore a year earlier.
Its EBITDA margin narrowed sharply to 27.3 per cent from 40 per cent in the corresponding quarter last fiscal, indicating increased pressure on profitability despite a relatively modest decline in revenue.
Net profit dropped 27.8 per cent to Rs 34.5 crore from Rs 47.8 crore in the year-ago period. The company said the quarterly performance was also affected by a one-time loss of Rs 3.4 crore.
Meanwhile, the board approved a two-year extension for the utilisation of proceeds raised through its qualified institutional placement (QIP). Zen Technologies had raised the funds in August 2024 and has been regularly updating stock exchanges on their utilisation through monitoring and deviation reports.
On Monday, the stock touched an intraday low of Rs 1,585.55. Over the past 52 weeks, it has traded between a low of Rs 1,224 and a high of Rs 2,023.40 on the BSE.
–IANS
ag/
