Defence stock in focus after securing Arms Manufacturing Licence from Govt of India 

SYNOPSIS: Company received arms licence to manufacture cannons for air defence and anti-drone systems, strengthening indigenous defence capabilities and positioning itself to address evolving modern warfare and security requirements.

During Friday’s trading session, shares of one of India’s leading defence technology companies and a leader in providing advanced defence training and anti-drone solutions, surged nearly 8 percent on BSE, after securing an arms manufacturing licence from the Government of India.

With a market cap of Rs. 14,682 crores, shares of Zen Technologies Limited closed in the green at Rs. 1626.1 on BSE, up by around 7 percent, compared to its previous closing price of Rs. 1,525.75. The stock has delivered positive returns of around 9 percent in the last one year, and has gained by over 14 percent in one month.

What’s the News

As per its latest disclosure to the stock exchanges, Zen Technologies Limited has received an arms manufacturing licence from the Government of India under the Arms Act, 1959.

The licence permits the company to manufacture a range of cannons, including 12.7mm, 23mm, 30mm, and 40mm systems. These are critical weapon platforms with applications across air defence, naval operations, and Counter-Unmanned Aircraft Systems (C-UAS). Such rapid-fire systems are designed to provide an effective last line of defence against drones, loitering munitions, and low-altitude aerial threats.

When integrated with advanced fire-control systems, radar, electro-optical/infrared (EO/IR) sensors, and programmable ammunition, these platforms offer enhanced accuracy, responsiveness, and cost efficiency. They are particularly suited for protecting strategic assets, armoured units, border regions, and critical infrastructure.

This development represents a significant step in strengthening India’s indigenous defence manufacturing capabilities under the IDDM framework. In the context of evolving global warfare dynamics, marked by increasing use of drones and asymmetric aerial threats, the licence positions the company to address emerging defence requirements with locally developed and cost-effective solutions.

Financials & More

Zen Technologies Limited is principally engaged in the design, development and manufacture of training simulators, anti-drone systems and operations for para-military forces, armed forces, security forces, police and government departments. The company caters to both domestic and international markets, while its manufacturing unit is located at Hardware Park, Maheswaram Mandal, Telangana, India.

As of 31st December 2025, Zen Tech reported a total order book of 1,082.76 crores, with new orders bagged worth Rs. 585.55 crores in Q3 FY26 and Rs. 177.83 crores of orders executed over the same period.

The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 17 percent, from Rs. 152 crores in Q3 FY25 to Rs. 178 crores in Q3 FY26. Likewise, its net profit increased during the same period from Rs. 43 crores to Rs. 56 crores, representing a rise of around 30 percent YoY.

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