Why is Zen Technologies Ltd’s Share Price Falling?
Posted by : sachet | Tue Dec 23 2025
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Zen Technologies has underperformed relative to key benchmarks over multiple time frames. In the last six months, the stock has declined by 30.03%, and over the previous month, it gained 0.93%, lagging the Sensex’s 0.75% rise. Zen Technologies has plummeted by 44.23%. The one-year return further emphasises this divergence, with the stock down 28.69% against the Sensex’s 4.15% increase. Despite these recent setbacks, the company’s longer-term returns are impressive, with a five-year return exceeding 1,490%, significantly outpacing the Sensex’s 86.59% growth. Furthermore, the stock is trading below all major averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical trend. Despite this, investor participation has increased, with delivery volumes up by over 153% compared to the five-day average.
A significant reason for the drop in the stock is that the company has reported a sequential decline in its Q3 revenue, which fell 41.44% to ₹241.69 crore. The drone industry in India’s defence sector has seen rapid growth in recent years. The government is actively promoting indigenous drone manufacturing under the “Make in India” initiative. Despite a strong performance over the past year, when the stock returned 45.67%, the company has a negative book value and weak long-term fundamentals, raising concerns among investors.
Key Reasons Behind Zen Technologies Ltd Share Price Fall
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There are several reasons behind the Zen Technologies share price fall, including weak Q2 F26 Results, a Sequential Decline in Q3 Numbers, market sentiment and underperformance, a Decline in Financial Performance, and slower order execution.
- Weak Q2 FY26 Results: Shares of Zen Technologies have come under pressure recently, declining 5%, and the market reaction is not without reason. The key reason behind the fall is the company’s Q2 FY26 results. Revenue from operations declined 28% to ₹1,735 million (m), down from ₹2,418 m in the same quarter last year.
- Sequential Decline in Q3 Numbers: A big reason the Zen Technologies share price fell is that the company reported a sequential decline in its Q3 revenue, which fell 41.44% to ₹241.69 crore. Moreover, the company also reported a net profit of ₹38.62 crores.
- Market Sentiment & Underperformance: The stock has significantly underperformed the broader market (Sensex), showing weak returns over the past year, indicating waning investor enthusiasm. The market’s sentiment is almost constantly changing, which leads to Zen Technologies’ share price declining over the long term.
- Decline in Financial Performance: Revenue from operations tumbled 28% to ₹173.5 crores, against ₹242 crores in the corresponding quarter of the previous fiscal, as the company reflected in a regulatory filing. Total expenses for the quarter stood at ₹116.5 crores, sharply lower than ₹167 crores reported in the year-ago period.
- Slower Order Execution: Delays in execution procedures and changes in government procurement mainly slowed the anticipated flow of simulator and training equipment orders, impacting revenue and causing a decline in Zen Technologies’ share price.
Note: For the live Zen Technologies Share Price Target, visit the univest app and check the stock fundamentals.
Zen Technologies Ltd: An Overview
Zen Technologies Limited is an indian publicly traded software and services company. The company’s stock trades on the Bombay Stock Exchange and on the National Stock Exchange of India. Zen Technologies’ total revenue is US$569.4 million. Zensar’s business is spread between North America, the United Kingdom, parts of Europe and South Africa. Zen Technologies has a portfolio of over 40 indigenously designed and developed products, ranging from Live Fire, Live Instrumented, Virtual, and Constructive training systems for individuals and collective training, as well as Counter Drone Solutions. With over 1,000 simulators and training systems shipped around the world, Zen Technologies is a proven leader in building training systems to develop and measure Combat Readiness.
Zen Technologies Ltd: Performance Analysis
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While Zen Technologies boasts a zero average debt-to-equity ratio, reflecting a strong balance sheet, recent financial results have raised concerns. The company’s net sales for the latest six months declined by 33.17%, signalling a contraction in revenue generation. Profit before tax (PBT) excluding other income for the quarter fell by 22.9% compared to the previous four quarters, and by 22.9% compared with the last four-quarter average, indicating pressure on core profitability. Investor confidence may also be affected by the promoter’s recent actions. Over the previous quarter, promoters reduced their stake by 0.54% to 48.51% of the company. Such a decrease can be interpreted as a lack of conviction in the company’s near-term prospects, potentially unsettling the market. This reduction in promoter holding coincides with the stock’s underperformance relative to the broader BSE500 index.
How have Zen Technologies Ltd Shares Performed Recently?
The recent share price of Zen Technologies is ₹1,395.60, a 2.16% increase from the previous day and a 0.93% increase from the last month, indicating potential. The interest for 9 months at ₹9.45 crore has grown by 47.20%, profit before tax less OI (Q) at ₹56.88 crore has fallen by 22.9% (vs the previous 4Q average), and net sales (Latest six months) at ₹331.79 crore have fallen by 33.17%. The stock is trading at a fair value relative to its peers’ average historical valuations over the past year. Over the past year, the stock has returned -44.18%, while its profits have risen by 21.6%. The company’s PEG ratio is 2.4. Promoters have decreased their stake in the company by -0.54% over the previous quarter and currently hold 48.51% of the company.
Note: For the live Zen Technologies Share Price Target, visit the univest app and check the stock fundamentals.
Zen Technologies Ltd: Future Outlook
The period 12-18 months will be critical to Zen Technologies because it will be implementing the new MoD contracts and may secure other domestic and export contracts. Investors can anticipate a steady inflow of revenue of 289 crore orders once the project starts operating. The effect must be reflected in quarterly results, and Zen is expanding its research and development of next-generation simulators and high-level anti-drone systems. If access to export opportunities is granted, the existing valuations would be justified. India’s defence spending will continue to increase, and local firms with a history of performance, such as Zen Technologies, may experience prolonged demand.
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Zen Technologies Ltd: Share Price Target
The Zen Technologies share price target is ₹1,550, and the consensus estimate represents an upside of 11.27% from the last price of 1,394.30. Based on 34 analysts, 25.00% of analysts recommend a ‘Buy’ rating for Zen Technologies, with an average share price target of ₹1,057.00. According to Wall Street analysts, the average 1-year share price target for Zen Technologies is ₹890.00 to ₹1,010.00, with a low forecast of ₹1,230.70 and a high forecast of ₹1,340.
1,021.40. The price is below an essential level of ₹1,032.00 on the charts, and if it remains below this level, the stock might decline in the short term. The Zen Technologies share price target for 2026 is ₹1,000.90, with the minimum estimate of ₹1.010.10 and a maximum estimate of ₹1,098.00. According to projections from 44 analysts, the average 12-month price target for Zen Technologies is ₹1,039.80, with a high estimate of ₹1,156.80 and a low estimate of ₹1,234.10.
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Zen Technologies Ltd: Analysts’ Rating
- The average 12-month price target is ₹1,550.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
- The analyst’s target range is observed between a high of ₹1,230.00 and a low of ₹1,090.
- According to some analysts, concerns remain about a ‘Reduce’ call at ₹1023.78.
- The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).
What is the Right Time to Buy Zen Technologies Ltd Shares?
According to analysts, Zen Technologies’ share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Zen Technologies. There are some factors to consider before investing in Zen Technologies Company shares.
- Strong Fundamentals: Investors should review Zen Technologies Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
- Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
- Growth in the Diversified Sector: The company is well-positioned in the diversified sector to deliver benefits to Zen Technologies. This dominant sector increases demand and prices for Zen Technologies.
- Highly Volatile: Prices are highly volatile, so price changes significantly impact Zen Technologies Company’s stock price. Investors must review the market structure before investing in Zen Technologies’ shares.
Note: For the live Zen Technologies Share Price Target, visit the univest app and check the stock fundamentals.
Conclusion
Zen Technologies’ stock has declined sharply, falling 33% in recent days and 60% since January 2025, mainly due to a sequential drop in earnings and delays in contract execution. However, the company remains optimistic about strong Q4 orders inflows and long-term growth, backed by acquisitions and international expansion. Zen Technologies is in the process of finalising orders worth ₹800 crores, anticipated to be secured by Q1FY26. Despite recent setbacks, the company has reaffirmed its ₹900 crore revenue target for FY25, with an expected EBITDA margin of 35%, signalling confidence in its long-term growth trajectory.
FAQs
What are the key reasons behind the Zen Technologies share price fall?
Ans. There are several reasons behind the Zen Technologies share price fall, including weak Q2 F26 Results, a Sequential Decline in Q3 Numbers, market sentiment and underperformance, a Decline in Financial Performance, and slower order execution. The stock has significantly underperformed the broader market (Sensex), showing weak returns over the past year, indicating waning investor enthusiasm. The market’s sentiment is almost constantly changing, which leads to Zen Technologies’ share price declining over the long term.
What is the Zen Technologies share price target?
Ans. The Zen Technologies share price target is ₹1,550, and the consensus estimate represents an upside of 11.27% from the last price of 1,394.30. Based on 34 analysts, 25.00% of analysts recommend a ‘Buy’ rating for Zen Technologies, with an average share price target of ₹1,057.00. The price is below an essential level of ₹1,032.00 on the charts, and if it remains below this level, the stock might decline in the short term. The Zen Technologies share price target for 2026 is ₹1,000.90, with the minimum estimate of ₹1.010.10 and a maximum estimate of ₹1,098.00.
Should investors buy Zen Technologies shares or not?
Ans. The Zen Technologies share price target is ₹1,550, and the consensus estimate represents an upside of 11.27% from the last price of 1,394.30. Based on 34 analysts, 25.00% of analysts recommend a ‘Buy’ rating for Zen Technologies, with an average share price target of ₹1,057.00. According to Wall Street analysts, the average 1-year share price target for Zen Technologies is ₹890.00 to ₹1,010.00, with a low forecast of ₹1,230.70 and a high forecast of ₹1,340.
What are the key factors that affect the Zen Technologies share price?
Ans. According to analysts, Zen Technologies’ share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Zen Technologies. There are some factors to consider before investing in Zen Technologies Company shares.The company is well-positioned in the diversified sector to deliver benefits to Zen Technologies. This dominant sector increases demand and prices for Zen Technologies.
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