Management Points to Delayed Order Conversion
The management said FY26 saw delays in order conversion beyond expectations, but added that FY27 execution is now clearly visible. Zen Technologies closed FY26 with a consolidated order book of ₹1,336 crore, supported by new order inflows of ₹431 crore secured during Q4FY26 alone. The company also stated that most of the current order book is scheduled for execution in FY27.
The management acknowledged that FY26 financial performance was muted compared with FY25, something it had earlier communicated to investors and stakeholders. However, it highlighted that the company has undergone a structural transformation over the last two years. Zen now has five defence capabilities ready for the armed forces: training simulation and systems, counter-drone solutions, automated weapons stations, combat robotics and drones.
The company also pointed out that its subsidiaries contributed to consolidated revenue and earnings during the year, supporting the earlier capital allocation decisions.
In the press release, the company has said, “With a strong forward order book, a structurally more diversified earnings base, an expanded product portfolio and a supportive policy environment, we believe Zen is entering FY27 better positioned than at any point in our recent history.”
Why Mazagon Dock Share Price Slips Over 4% Despite Strong YoY Growth
Mazagon Dock Shipbuilders also traded lower on Monday, with the stock declining by over 4%. This came despite healthy year-on-year growth in its Q4FY26 numbers.
The company reported revenue from operations of ₹3,850 crore in Q4FY26, up 21.30% YoY from ₹3,174 crore in Q4FY25. On a sequential basis, revenue rose 6.91% QoQ from ₹3,601 crore in Q3FY26. Total income stood at ₹4,134 crore, rising 19.45% YoY and 7.02% QoQ.
EBITDA came in at ₹826 crore, up 103.45% YoY, but declined 28.11% QoQ from ₹1,149 crore in Q3FY26. Net profit stood at ₹674 crore, registering a 107.38% YoY increase, though it was down 23.41% QoQ.
FY26 Performance and Margin Movement
For FY26, on a consolidated basis, Mazagon Dock Shipbuilders’ revenue from operations increased to ₹13,006 crore from ₹11,432 crore in FY25, reflecting a 13.77% YoY rise. Total income increased 12.78% YoY to ₹14,146 crore from ₹12,543 crore.
EBITDA stood at ₹3,405 crore, up 6.37% YoY, while PBT rose 5.72% YoY to ₹3,237 crore from ₹3,062 crore. PAT increased 6.79% YoY to ₹2,578 crore from ₹2,414 crore. However, operating margin moderated from 17% in FY25 to 16% in FY26, a contraction of 100 basis points.
Order Book Gap Weighs on Mazagon Dock
One of the key reasons behind the fall in Mazagon Dock Shipbuilders’ share price appears to be the gap between the company’s earlier order book guidance and its actual order book position at the end of FY26.
Mazagon Dock’s total order book stood at ₹20,535 crore as of March 31, 2026. Of this, the largest contribution came from the P17A Stealth Frigates, with a balance order value of ₹8,257 crore, accounting for nearly 40.21% of the total order book.
This number disappointed the market because management had earlier guided for a much stronger order book trajectory. In the Q2FY26 earnings call, when asked about the order book outlook from the then level of around ₹27,000 crore to ₹27,415 crore, management said it expected the order book to be “in excess of ₹1 lakh crore” by FY27.
The guidance in the earlier Q4FY25 concall was even more aggressive. At that time, management had said that MDL expected the P-75 additional submarines and P-75(I) submarines contracts to be signed in FY26. If both contracts were signed, the order book could have increased from the then level of around ₹32,000 crore to more than ₹1.25 lakh crore.
However, this guidance was clearly conditional. Management had stated that achieving such an order book size depended on the signing of both the P-75 additional submarines contract and the P-75 India submarines project.
That is where the concern lies. With the FY26 closing order book at ₹20,535 crore, the company is currently far below the earlier ₹1 lakh crore plus guidance for FY27. This sharp gap between market expectations and the actual order book position likely triggered disappointment among investors, leading to pressure on the stock despite YoY growth in revenue and profit.
While Mazagon Dock reported strong YoY growth, the sequential decline in EBITDA and net profit, along with moderation in operating margin, appears to have weighed on sentiment. For Zen Technologies, the sharp fall in Q4FY26 revenue and profitability was the key trigger, even as the company pointed to better execution visibility in FY27.
