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Why Zen Technologies Share Price Crashed 10% Today
Image source: honglouwawa/www.istockphoto.comThe NIFTY50 and BSE SENSEX indices snapped their 5-day losing streak on 27 July.
The benchmark NIFTY50 index and BSE SENSEX index gained over 0.68% in the morning trade.
The rally was driven by falling crude oil prices, a bounce-back in heavyweight stocks, and strength in banking shares - all fuelled by reports that military strikes in West Asia may be pausing.
But one stock refused to join the party: Zen Technologies. Shares of the defence and small-arms maker slid more than 10% intraday, hitting a low of Rs 1,585.55, down from its previous close of Rs 1,769.5.
So what's dragging Zen Technologies down while the rest of the market cheers?
#1 Poor Q1 Result
Zen Technologies shares declined after the company reported weak Q1 earnings numbers.
The revenue from operations fell 10.5% YoY to Rs 1,416.3 million (m) in the June 2026 quarter.
Zen Technologies' profitability was also impacted by an exceptional loss during the quarter. Profit before exceptional items and tax (PBT) declined 36.2% year-on-year (YoY) to Rs 486.2 m in Q1 FY27 from Rs 762.1 m in the corresponding quarter last year.
The company reported an exceptional loss of Rs 33.7 m, primarily due to inventory damage at its subsidiary, Uni String Tech Solutions, following a fire incident on 25 April 2026.
EBITDA for the quarter stood at Rs 578.8 m, down 33.1% from Rs 864.9 m a year back. The EBITDA margin contracted sharply to 40.9% in Q1 FY27 as against 54.7% in Q1 FY26.
The company reported a 27.83% year-on-year (YoY) tumble in consolidated net profit to Rs 344.6 m for the quarter ended 30 June 2026 (Q1 FY27), compared with Rs 477.5 m in Q1 FY26.
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Rutvi Vasant is a financial writer at Equitymaster, contributing since June 2022. She covers stocks, sectors, corporate developments, earnings, and market trends across India's listed universe, delivering timely, well-researched insights for retail investors.
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