These two defence stocks are seeing a mixed reaction after their Q3 results

Shares of Bharat Dynamics Ltd. and Zen Technologies Ltd.were trading mixed on Sunday, February 1, after the two defence companies reported their third quarter earnings on Saturday.

Bharat Dynamics reported a weak quarter, while Zen Tech reported a mixed quarter in the October to December 2025 period.

Bharat Dynamics

The company reported a weak quarter, which was significantly below estimates on all fronts.

Its revenue declined 32% to ₹567 crore, while the estimates were of a 38% growth. The same was likely due to weak execution in major projects.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) declined 80% to ₹26 crore, in comparison to 57% growth estimates.

The company's adjusted net profit declined 74%, while the estimate was of a 44% growth. The base quarter adjustment of ₹135 crore provision was for onerous contract.

Bharat Dynamics' EBITDA margins contracted more than ₹1,000 basis points to 4.6% in comparison to a 200 basis points expansion.

The company's profitability was dragged by an increase in material costs to 59% from 44% in the year-ago period.

Bharat Dynamics' board also approved an interim dividend of ₹4.5 apiece and set February 9 as the record date for the same.

Shares of Bharat Dynamics were trading 2% lower at ₹1,499.7 apiece. The stock has gained 37.5% in the past year.

Zen Technologies 

Zen Technologies reported an overall mixed quarter in the October to December period.

The company's revenue declined 18% to ₹116 crore, while estimates were of a 7% growth.

Its EBITDA growth of 43% was in-line with expectations.

The company's margins expanded more than ₹1,900 basis points from the previous year to 45%, higher than estimates of 35%. This was aided by significantly lower material cost/ sales.

The company's net profit increased 24% to ₹48 crore compared to estimates of 36% growth.

The company's order inflow in the third quarter was ₹586 crore, below guidance of 650 crore. The company received orders worth ₹345 crore after the third quarter. Its total order inflow in the last four months was at ₹931 crore.

Zen Tech said its performance was impacted due to delays in the finalisation of regular procurement orders, following the security threats the country faced in May 2025.

It expected some of its revenue earlier expected to be recognised in FY26 to materialise in the subsequent financial years.

It also expects further order wins before the end of the fiscal — majority of these orders are scheduled for execution in FY27.

Zen Tech said it expects a stronger financial performance in FY27, supported by higher execution.

The company's order book stood at ₹1,083 crore in the third quarter.

On another note, Zen Tech also appointed Hari Haran Chalat as the chief financial officer (CFO), with effect from January 31, 2026.

Zen Tech shares were up over 5% at ₹1,454.3 apiece on Sunday. The stock has declined 11.3% in the past year.

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