Zen Technologies wins a ₹177.5 crore Ministry of Defence contract for simulator upgrades.
The order follows the company's expansion in drone propulsion manufacturing through Vector Technics.
Shares rose nearly 4% despite a sharp decline in fourth-quarter profit and revenue.
Zen Technologies Bags ₹177.5 Cr Defence Deal, Shares Rise Despite Weak Q4
The Ministry of Defence contract to upgrade Tank and Crew Gunnery Simulators comes weeks after the company expanded its drone propulsion business, with investors overlooking a sharp decline in fourth-quarter earnings
Summary
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Zen Technologies has landed a ₹177.5 crore order from the Ministry of Defence to upgrade and integrate Tank and Crew Gunnery Simulators for the armed forces, the Hyderabad-based defence technology company said in a stock exchange filing on Tuesday. A win that comes just months after a sharp slump in quarterly earnings.
The contract is to be executed within one year, covering the upgradation and integration of the simulators, though the company did not disclose how many units are involved. Zen Technologies clarified that the order is domestic in nature and that neither its promoters nor promoter group entities hold any interest in the awarding authority.
Building on Recent Momentum
The defence win follows closely on the heels of expansion plans the company outlined through its subsidiary, Vector Technics. On July 7, the drone propulsion systems manufacturer said its expanded production capacity could support revenue of up to ₹400 crore as demand for such systems is on rise.
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Meanwhile, Vector Technics has ramped up its annual manufacturing capacity to three lakh propulsion units, with domestic demand expected to remain the primary growth driver. The subsidiary anticipates exports could eventually contribute about ₹100 crore in revenue, adding a fresh growth lever to the group's portfolio.
A Rough Patch Behind It
The latest order arrives against the backdrop of a weak fourth quarter for Zen Technologies. For the quarter ended March 2026, the company reported a steep 68.8% year-on-year decline in net profit to ₹31.5 crore, down from ₹101.1 crore a year earlier.
However, revenue for the quarter fell 45.2% to ₹178.1 crore, compared with ₹324.9 crore in the corresponding period of the previous year. Which is a decline, the company attributed to lower business activity during the quarter.
Investors appeared to look past the earnings weakness and towards the new order flow. Shares of Zen Technologies closed at ₹1,829 on the National Stock Exchange, up 4.53% from the previous close, suggesting the market is betting on the company's order pipeline.
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