Zen Technologies Limited has informed the Exchange about Transcript

November 05, 2026 To To Listing Department Dept. of Corp. Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Dalal Street Bandra (E), Mumbai – 400 051 Mumbai- 400001 Symbol: ZENTEC Scrip Code: 533339 Dear Sir/Madam, Sub: Transcript of the earnings Conference Call held on November 02, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the earnings conference call held on Monday, November 02, 2026. This is for your kind information and records. Thanking you Yours faithfully, For Zen Technologies Limited Sourav Dhar Company Secretary & Compliance Officer Encl: as above “Zen Technologies Limited Q2 & H1 FY2027 Earnings Conference Call” November 02, 2026 Management: Mr. Ashok Atluri - Chairman & Managing Director Mr. Hari Haran Chalat - Chief Financial Officer Ms. Abhilasha Atluri - Head of Investor Relations Mr. Ravi Udeshi – Senior Manager Investor Relations Page 1 of 20 Zen Technologies Limited November 2, 2026 Moderator: Ladies and gentlemen, good day and a warm welcome to Zen Technologies Limited’s Q2 FY 2027 Earnings Conference Call. Please note all participants’ lines will be in the listen- only mode and there will be an opportunity for you to ask questions after the management’s opening remarks. Please note that this conference is being recorded. I now hand the conference over to Mr. Ravi Udeshi from Zen Technologies. Thank you and over to you, Ravi Udeshi: Thank you, Swapnil. Welcome and thank you all for joining this Q2 and H1 FY2027 earnings conference call of Zen Technologies Limited. The results and the investor updates have been e-mailed to you and are also available on the Stock Exchanges. In case anyone does not have a copy of the same, please do write to us and we will be happy to send it over to you. To take us to the results for this quarter and to answer your questions, we have with us today, Mr. Ashok Atluri, Chairman and Managing Director; Mr. Hari Haran Chalat, Chief Financial Officer and Ms. Abhilasha Atluri, Head of Investor Relations. We will be starting the call with a brief overview of the performance, which will be followed by the question-and-answer session. Before we start the call, I would like to remind you that the Safe Harbor Clause applies. With that said, I now hand over the call to Mr. Hari Haran Chalat. Over to you, Sir! Hari Haran Chalat: Thank you, Ravi. Good evening and warm welcome to all. Thank you for joining us on the Q2 and H1 FY2027 earnings call. I will take you through our financial performance for the quarter and half year ended September 30, 2026. Consolidated revenue from operations for Q2 FY2027 stood at Rs.345.1 crores, a highest ever quarterly revenue, representing a growth of 98.8% over Rs.173.6 crores in Q2 FY 2026 and more than double the Rs.141.6 Crores reported in Q1 FY2027. As we have consistently indicated in our earlier interactions, our revenue is expected to be weighted towards Q2 and Q3 and this quarter reflects the execution of the order book we have been building since last year. Operational EBITDA for the quarter stood at Rs.132 Crores at an operational EBITDA margin of 38.2% compared with 37.3% in Q2 FY2026 and 27.3% in Q1 FY2027. Profit after tax attributable to shareholders stood at Rs.89.5 Crores, a growth of 50.7% over Rs.59.4 Crores in Q2 FY2026. We have committed in our previous earnings call that as the revenue increases and operating leverage kicks in, we would see the margins normalized towards the 35% EBITDA that we had guided, and this quarter confirms that. Taking the two quarters together, our H1 FY2027 operational EBITDA margin stands at 35.1%. This is in line with the mid-30s full year guidance we have shared. We continue to guide a full-year operational EBITDA margin in the mid-30s. I would like to spend some time on the increase expenses that you would have seen for the quarter. You will note that our employee benefit expense Page 2 of 20 Zen Technologies Limited November 2, 2026 and other expenses have increased in absolute terms this quarter. On the employee benefit side, it reflects performance incentives accrued towards during the quarter and the ramp up of our R&D team headcount, particularly in AI and emerging product areas. This is in line with our communication that we expect to see increasing R&D investments over the year. On other expenses, the increase is primarily due to warranty provisioning, which varies depending on the product mix between ADS and simulators. This quarter, we had a higher mix of ADS resulting in Rs.9.3 Crores higher provision in Q2 FY2027, was in the same period last year. In addition to the warranty expenses, we have also seen an increase in consultancy and professional fees towards design and development of certain R&D products in the pipeline. Even after these increases, the employee and other expenses together with 24.4% of revenue this quarter compared with 26.3% a year ago, so our cost base has been efficient as we have scaled, even though the absolute numbers may seem to have increased. Coming to the half year, consolidated revenue from the operations for H1 FY2027 was Rs.486.8 Crores, a growth of 46.7% over Rs.331.8 Crores in H1 FY2026. Operational EBITDA for the half year was Rs.170.7 Crores and profit after tax attributable to shareholders was Rs.124 Crores compared with Rs.107.2 Crores in H1 FY2026. Now coming to the order book, the consolidated order book stood at Rs.1375.7 Crores as of September 30, 2026, comprising an equipment order book of Rs.995 Crores and an AMC order book of Rs.380.7 Crores. During the quarter we executed Rs.345.1 Crores of orders and secured new order inflows of Rs.481.8 Crores. I would draw your attention to the fact that our order inflow during the quarter exceeded the revenue we executed, so the order book continued to grow even as execution accelerated, from Rs.1239 Crores at the start of the quarter to Rs.1375.7 Crores. This reflects the stable demand across our product categories and gives us visibility into the coming quarters. Let me now turn into working capital and the balance sheet. Our consolidated working capital cycle stood at 379 days as of September 30, 2026, compared with 255 days at the end of Q1. The increase is driven primarily by two factors, first debtor days increase, which is a direct consequence of our revenue being weighted towards Q2 FY2027. These are recent receivables from the execution ramp. Second, advances to suppliers increased as we procure to execute the order book scheduled for delivery through the remainder of the year. Inventory days reduced over the quarter. This also explains the operating cash flows for the half year. The net operating cash flows for the half year was negative, but this is a function of the working capital build I described earlier. The increase in receivables from our back- ended revenue and the inventory and advance is deployed to execute the order book. The receivables are recent and largely by government and defense contracts, where collection risk is low and this build has been funded entirely from our own resources. We remain debt free with approximately Rs.968 Crores of cash and bank balances. The business is Page 3 of 20 Zen Technologies Limited November 2, 2026 profitable and cash generating at the operating level. The cash is currently deployed in working capital that supports our execution. This is the brief on our financial performance for the quarter and the half year. We can now take questions. Thank you. Moderator: Thank you so much. Ladies and gentlemen, we will now begin with the question-and- answer session. Anyone who wishes to ask a question may click on the raise hand icon from the participants tab on your screen. We request participants to keep their questions as brief and precise as possible. We will wait for a few minutes until t [Showing first 8,000 characters — download PDF for full document]