Shares of Zen Technologies extended their losing streak on Tuesday (February 18), falling another 10%, following a 20% drop in Monday’s session. The stock has now lost 60% of its value since January this year. The sharp selloff comes after a stellar nine-fold rally between May 2023 and December 2024.

Despite the massive correction, promoters have no plans to increase their stake. In fact, the founder’s ownership fell below 50% in the December quarter, primarily due to equity dilution from the QIP launched in August last year for acquisitions and working capital needs.

However, Chairman & MD Ashok Atluri remains optimistic about the company’s future growth. “Our topline will grow at an average compounded rate of 50% over the next three years,” said Atluri in an interaction with CNBC-TV18.

Zen Technologies is currently finalising orders worth ₹800 crore, expected to be secured by Q1FY26. The company has also maintained its FY25 revenue guidance of ₹900 crore, with an expected EBITDA margin of 35%. The defence simulation training equipment and counter drone solutions provider posted a 40% growth in December quarter net profit to ₹43 crore. While its revenue climbed 53% to ₹152 crore., EBITDA margins slipped to 38.01% during the quarter.

Also read: Zen Technologies tanks most in five years as broader market sell-off intensifies

Interestingly, all four analysts tracking Zen Technologies on Bloomberg have a “Buy” rating on the stock, with ICICI Securities setting the highest target price at ₹2,535.

Shares of Zen Technologies were trading below ₹1,000 on Tuesday (February 18), down nearly 10% from the previous close.