Defence stock with revenue growth guidance of ₹6,000 Cr to keep an eye on

Synopsis:
Zen​‍​‌‍​‍‌​‍​‌‍​‍‌ Technologies is in focus as the company anticipates a subdued FY26 but plans to increase its revenue to over Rs 6,000 crore during the period from FY26 to FY28, backed by solid order wins and the net effect of the recent ​‍​‌‍​‍‌​‍​‌‍​‍‌acquisitions.

The shares of this leading drone and defence tech manufacturer are in focus after the company gave a solid revenue outlook for its future, backed by improved order inflows in future, as it is seeing a muted demand because of recent uncertainties. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 12,472 crore, the shares of Zen​‍​‌‍​‍‌​‍​‌‍​‍‌ Technologies Ltd made a day high of Rs 1,399.45 per share, up 0.43 percent from its previous day’s closing price of Rs 1393.40 per share. Over the past five years, the stock has delivered a multibagger return of 1,659 percent, outperforming NIFTY 50’s return of 96 percent.

About the Guidance

Zen​‍​‌‍​‍‌​‍​‌‍​‍‌ Technologies Ltd is expecting FY26 to be quite a dull year. Still, the company believes that the years FY27 and FY28 will be much better as they anticipate an increase in order inflows. The management is looking to generate a total revenue of over Rs 6,000 crore during the period from FY26 to FY28, as compared to Rs 974 crore in FY25.

Moreover, the company has secured the lead in various contracts, among which is a Rs 108-crore order for tank crew gunnery simulators and a total order value of more than Rs 300 crore for an anti-drone system comprising both upgrades and new hard-kill platforms.

It also added that the recent acquisitions are also paying off in terms of growth, which is already happening for ARI Simulation, which specialises in naval simulation and is presently contributing to both revenue and profits. AiTuring will become a contributor during this year, while TISA Aerospace and Vector Technics, concentrating on the drone engines and sub-components, respectively, are likely to start adding revenue from next year. 

Zen anticipates a very strong surge in orders in the second half of the year, following a quite slow first half, which has been affected by the Sindoor crisis and temporary procurement delays. To add, the company is pushing its international goals further by attending the largest simulation fair in the world, which is held in the US.

With the US defence procurement process becoming quicker and more demonstration-driven, Zen is optimistic about scaling its R&D-led products in the US and NATO markets. Zen is seeing a great chance to extend its research and development-driven products in the US and NATO ​‍​‌‍​‍‌​‍​‌‍​‍‌markets.

Financial and Other Highlights

Zen Technologies Ltd reported a core revenue of Rs 174 crore in Q2 FY26, a decline of 28 percent as compared to Rs 242 crore in Q2 FY25. However, it grew by 10 percent from Rs 158 crore in Q1 FY26. 

Regarding its profitability, it reported a net profit of Rs 62 crore in Q2 FY26, a decline of 2 percent as compared to Rs 63 crore in Q2 FY25. However, it recorded a growth of 17 percent from Rs 53 crore in Q1 FY26.

Zen​‍​‌‍​‍‌​‍​‌‍​‍‌ Technologies had an order book worth Rs 675 crore as of Sep 2025. The order book was Rs 754.46 crore in July 2025. In the second quarter of the financial year 2026, the company secured new orders totalling Rs 94 crore and executed orders worth Rs 173.57 crore, which resulted in the current order book ​‍​‌‍​‍‌​‍​‌‍​‍‌position.

Zen Technologies Limited develops and produces sophisticated training simulators and anti-drone systems for use by the military, paramilitary, police, and civilians in India and worldwide. Its products consist of combat simulation systems, digital shooting ranges, driving simulators, and tactical training aids. It provides defence, security, transport, and infrastructure industries with solutions to increase preparedness and safety.

Written by Satyajeet Mukherjee

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