Defence training and simulation technology company Zen Technologies Ltd has received a new order worth approximately ₹37 crore from the Ministry of Defence (MoD) for the supply of indigenous anti-drone systems. These systems are designed to detect, track, and neutralise aerial threats, playing a crucial role in India’s defence preparedness amid growing drone-related security concerns.

According to the company’s exchange filing, the order will be executed within a year, marking another major achievement for the Hyderabad-based firm. The company clarified that its promoters and promoter group have no interest in the awarding entity, confirming that the deal does not qualify as a related-party transaction.

The announcement led to a mild uptick in investor sentiment, with Zen Technologies shares closing at ₹1,419.90, up by ₹5.60 or 0.40% on the BSE on Thursday.

Boost for India’s indigenous defence ecosystem

The new order highlights India’s growing push for indigenous defence manufacturing under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. Zen Technologies, known for its expertise in combat training, drone simulation, and anti-drone technologies, continues to emerge as a leading player in this space.

Its newly secured order includes hard kill capabilities, meaning the systems can physically destroy or neutralise aerial targets, rather than just jamming or diverting them. This feature adds an advanced layer of protection for defence forces facing increasingly sophisticated aerial threats.

With this contract, the company reinforces its leadership in the anti-drone segment, where demand from both defence and homeland security agencies has surged over the past few years.

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Q1 FY25 results show a temporary slowdown

Despite the positive order news, Zen Technologies’ financial performance for the first quarter of FY25 reflected a slowdown in growth momentum.

The company’s revenue dropped 38% year-on-year to ₹158.21 crore, compared to ₹255.66 crore in the same quarter last year. Similarly, its EBITDA fell 42% YoY to ₹64.69 crore, and net profit declined 33% YoY to ₹53 crore.

The EBITDA margin contracted by 284 basis points, indicating some margin pressure due to lower order execution and delayed project timelines. On a sequential basis, most financial metrics were down by over 50%, including revenue and profitability.

Zen Technologies attributed this dip to temporary factors, noting that order execution cycles in the defence industry tend to vary from quarter to quarter based on project timelines and government approvals.

Company maintains long-term growth outlook

Commenting on the quarterly results, Chairman and Managing Director Ashok Atluri said that the company remains confident about its long-term growth trajectory.

“Revenue growth moderated during the quarter, but this is a temporary adjustment phase. The underlying fundamentals and order pipeline remain very strong,” Atluri said.

During the June quarter, the company bagged fresh orders worth ₹64.26 crore, which is lower than the ₹168 crore worth of contracts won in the March quarter. Despite the quarter-on-quarter decline, Zen Technologies continues to maintain a healthy order book of ₹754 crore, ensuring visibility for future growth.

Expanding portfolio and industry opportunities

Zen Technologies has been diversifying its product portfolio, moving beyond training simulators into unmanned aerial vehicles (UAVs), anti-drone systems, and other advanced technologies.

Earlier this year, the company also entered the UAV segment through its acquisition of TISA Aerospace, further strengthening its position in the high-growth defence technology space. With global and domestic governments increasing investments in modern defence equipment, Zen Technologies is well-positioned to capitalise on this shift.

The current order from the Defence Ministry will not only enhance the company’s execution capabilities but also strengthen its reputation as a trusted indigenous defence technology supplier.

Industry experts believe that the growing demand for anti-drone and counter-drone systems will continue to benefit Zen Technologies, especially as border security and critical infrastructure protection gain more priority in India’s defence strategy.

Market reaction and investor sentiment

Following the announcement, Zen Technologies’ stock ended higher at ₹1,419.90 on the Bombay Stock Exchange, up 0.40%. Investors remain optimistic about the company’s ability to maintain strong order inflows and execution efficiency despite short-term earnings pressure.

The company’s performance will be closely watched in the coming quarters, especially as it executes the newly awarded MoD order and eyes additional contracts from domestic and global defence agencies.

Outlook

While the recent slowdown in financial performance reflects near-term challenges, Zen Technologies continues to be one of the most promising defence tech firms in India, thanks to its innovation-driven approach and focus on indigenisation.

The ₹37-crore anti-drone order from the Defence Ministry reaffirms its role in strengthening the country’s aerial defence systems. With a robust order book, upcoming project deliveries, and a growing global opportunity pipeline, Zen Technologies is expected to remain a key player in India’s defence manufacturing growth story.