Zen Technologies Ltd is strategically positioned to maintain a remarkable 50% compound annual growth rate (CAGR) over the next three years, extending up to FY28, driven by a solid and expanding order book. Ashok Atluri, the Chairman and Managing Director of Zen Technologies, has projected a topline of approximately Rs 1,350 crore by fiscal year 2026, with further growth anticipated to reach Rs 3,000 crore by fiscal year 2028.
The company, which specializes in providing anti-drone systems and combat training solutions, reported an order book valued at nearly Rs 1,160 crore as of the June quarter. Zen Technologies is on track to execute orders worth Rs 650 crore within the current financial year, a move that is expected to significantly bolster its CAGR.
“This execution will propel us to achieve a turnover of Rs 900 crore during the year,” Atluri stated. He further added that the company anticipates securing substantial orders towards the end of the third and fourth quarters, which will be instrumental in bringing them closer to their ambitious target of a 50% growth rate, aiming for a turnover of approximately Rs 1,350 crore in the following fiscal year.
Atluri expressed strong confidence in the sustainability of a 50% CAGR for the upcoming three years, emphasizing the growing demand for drones and anti-drone systems among defense forces globally. “We are ideally positioned at the intersection of the two most critical needs for armed forces worldwide—training simulators and anti-drone systems,” he noted.
He also projected that the EBITDA margin would conservatively remain around 35%, while the profit after tax (PAT) is expected to hold steady at 25%, extending up to FY28. According to Atluri, the simulators business is anticipated to contribute a significant 60% of the company’s revenue by FY28. Additionally, he noted that margins within this segment are expected to improve over time.
“Currently, margins in the anti-drone sector are around 30%, whereas the simulator segment enjoys higher margins of approximately 40%,” he explained. On the export front, Atluri revealed that the current export order book, valued at Rs 400 crore, is expected to grow, with export revenue projected to account for 40-45% of the company’s total revenue in the coming years.
In terms of capital expenditure (capex), Atluri mentioned that the company would require minimal investment to fulfill these orders, as Zen Technologies primarily outsources its manufacturing processes. “The actual investment in plants and machinery has been relatively low. However, as we conduct the final integration at our facilities and are expanding our space to accommodate these activities, there will be a capex requirement of less than Rs 50 crore,” he clarified.
Recently, Zen Technologies successfully raised Rs 1,000 crore through its first-ever Qualified Institutional Placement (QIP). The company plans to utilize these funds to pursue inorganic growth opportunities, particularly in the areas of simulation and anti-drone systems. Additionally, some of the funds will be allocated to meet working capital requirements and for general corporate purposes, including enhancing research and development efforts to further innovate their product offerings.
Zen Technologies Ltd specializes in providing advanced training simulators and anti-drone systems, catering primarily to defense and security forces worldwide. With a strong focus on innovation, the company develops cutting-edge solutions to enhance combat readiness. Zen Technologies is strategically positioned for growth, backed by a robust order book and expanding global presence, particularly in export markets.
