Zen Technologies expects to post its highest-ever annual revenue of Rs 1,300-1,500 crore in the current financial year, as a rebound in simulator orders and an expanded export licence regime lift the defence technology firm's growth outlook.
Chairman and Managing Director Ashok Atluri told NDTV Profit that the company's order book had been weighed down earlier this year after simulator orders were delayed in the aftermath of Operation Sindoor, as the government prioritised emergency procurement.
"Our order book was little low and the orders that were going to come to us got held back, especially simulator orders got held back because of Operation Sindoor. They started procuring emergency equipment more than this," he said, adding that those simulator orders have since started flowing in, with the company securing over Rs 600 crore worth so far and expecting more.
On the outlook for the rest of the year, Atluri said, "We have been talking to the investors and we have been saying that Q2, Q3 are going to be pretty healthy compared to the other last five quarters... we also said that the overall year will perhaps be the highest turnover year ever in the history of Zen."
Pressed on whether this could mean a material beat over FY25's revenue of Rs 974 crore, he said, "We have indicated it's going to be about 1,300 to 1,500 crores."
Atluri also pointed to a recent government move extending the validity of the Open General Export Licence (OGEL) from two years to three, widening its country coverage beyond the earlier list of 41 nations, and expanding the range of items covered, changes he said would meaningfully ease the company's export process.
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"Even the time to export... has now shortened," he said, noting that separate approval cycles for equipment, spares and technology transfers have now been "clubbed into one category," reducing repeated trips to the government for clearance.
He added that touch points had reduced further, with only UN-embargoed countries remaining off-limits for exports.
The company's overall order book has grown past Rs 1,600 crore, Atluri said, with its export order book currently at Rs 85 crore of a Rs 1,239 crore total.
He said Zen was targeting the US simulator market, valued at roughly $10 billion, with near-term ambitions of $100 million in revenue from the region within three years, while maintaining full-year margin targets of 25% PAT and 35% EBITDA.
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