ZENTEC

Builds IP-Led Defence Portfolio with Strong Order Visibility

is emerging as a high-potential defence tech player with a differentiated portfolio in combat training simulators and counter-drone systems. Its early-mover advantage, strong R&D foundation, and expanding order book position it well to benefit from India’s defence modernisation and global security demand. - CUAS Market Offers Urgent Scale-Up Opportunity Zen’s Anti-Drone System (ZADS) addresses rising UAV threats with soft-kill and hard-kill capabilities. India’s 15,000-km border may require ~1,250 ADS units, representing a ₹10,000 crore addressable market. Global CUAS demand is also accelerating, offering export upside. - Combat Simulator Segment Provides Recurring Revenue Zen is India’s largest supplier of simulation training equipment, with over 1,000 units shipped globally. The segment benefits from regular replacement cycles and continuous training needs, ensuring multi-year growth visibility. - Strong Order Book and Execution Pipeline Current order book stands at ₹956 crore—split 56% simulators, 44% drones—nearly 1x annual revenue. Despite FY25 softness due to tender - delays, Zen expects ₹600–650 crore in new orders by March 2026 and acceleration in FY27–28. - Capital-Light Model with High Margins With 85% manufacturing outsourced, Zen maintains a lean balance sheet (fixed assets at 10%) and robust EBITDA margins of 39%. This allows focus on IP, design, and R&D—backed by 200+ patent filings and 88 grants. - Strategic Acquisitions and Export Expansion Zen has acquired stakes in firms across drone components (Vector Technics), loitering munitions (TISA Aerospace), robotics (Bhairav), electronic warfare (Unistring, Ai Turing), and naval simulations (Applied Research). Exports now form 15% of the order book, with growth expected across Africa, Middle East, and CIS in H2FY26.