Zen Tech eyes major share in govt anti-drones orders, predicts overall market hitting $2 bn by 2030

Hyderabad-based Zen Technologies is positioning itself to capture a substantial portion of upcoming government contracts. As a key player in the defence sector, providing simulators for weapons and defence equipment, Zen is the Ministry of Defence's exclusive supplier of anti-drone systems.

In a chat with CNBC-TV18, Ashok Atluri, the company's CMD, stated that Zen possesses significant indigenous capabilities in counter-drone technologies, which are becoming a crucial part of the portfolio.

"We were the single vendor and there was nobody else qualified for this. So that gives us confidence that in the future, we expect to get a big chunk of the order that is being floated by the Indian government and other governments.”

Counter-drone technology refers to systems that are used to detect, track, and/or neutralize unmanned aerial vehicles (UAVs), commonly known as drones.

Atluri also pointed out the counter-drone market's vast potential, projecting it could be worth up to $2 billion in the next five to seven years.

Zen Technologies has recently fortified its position in the defence training sector with a ₹100 crore contract from the defence ministry for a state-of-the-art tank training system. The company boasts an order book worth ₹1,400 crore, with exports contributing over ₹350 crore.

Zen's second-quarter revenue nearly doubled year-on-year to ₹66.5 crore from ₹33.4 crore while profit after tax (PAT) rose by nearly 79% to ₹13.6 crore.

Shares of Zen Technologies have declined more than 4% over the past month.