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Zen Tech jumps 11% on licence win

Zen Technologies shares surged sharply after the company secured a government licence to manufacture arms and weapon systems, lifting investor sentiment and driving strong buying in the stock.

The defence technology company’s shares rose as much as 11% during trade, extending their recent rally. Over the past month, the stock has climbed around 33%, making it one of the stronger performers in the defence space.

Zen Technologies said it has received approval under the Arms Act, allowing it to manufacture 12.7mm, 23mm, 30mm and 40mm cannons. These systems are widely used in air defence, naval operations and anti-drone applications.

The development is seen as an important milestone for the company, which has so far been known mainly for defence training simulators and combat solutions. With this licence, Zen Tech can now expand into weapons manufacturing and tap larger opportunities in India’s defence sector.

Investors responded positively as the approval opens a new business segment and strengthens the company’s long-term growth story. The stock has also gained more than 17% in the last five trading sessions, showing continued momentum after the announcement.

Zen Technologies has benefited from India’s push for defence self-reliance and higher local manufacturing.

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Ministry of Defence awards ₹120 cr order to Zen Technologies

Zen Technologies Ltd, a leading Indian defence training solutions provider, saw its shares rise over 2% following the announcement of a major contract win. The company has secured a ₹120‑crore order from the Ministry of Defence (MoD) for supplying a “Comprehensive Training Node” (CTN), which comprises a set of advanced simulators and related equipment designed to enhance training for defence personnel.

The company stated that the order is scheduled for delivery within a year and clarified that this is not a related-party transaction. The CTN package will bolster the Indian armed forces’ training infrastructure, providing realistic simulation-based training for various operational scenarios. This aligns with the government’s push for modernisation and self-reliance in defence technology.

Zen Technologies is known for its specialised defence simulators, anti-drone systems, and other defence-related products. The company has steadily built a reputation for providing technologically advanced and reliable solutions for training armed forces, paramilitary personnel, and police units across India and overseas.

The latest contract adds to Zen’s existing order book and enhances the company’s revenue visibility for the upcoming fiscal periods. Analysts noted that defence orders of this scale signal strong demand for indigenous training solutions and could position Zen Technologies as a key partner in India’s defence modernisation plans.

Financially, Zen reported a consolidated net profit of ₹59.4 crore in Q2 FY26, reflecting a slight decline compared to the same period last year, but showing sequential growth over the previous quarter. Revenue from operations also demonstrated resilience, supported by ongoing defence and training contracts.

Market observers believe that with rising focus on defence self-reliance and increased allocation in defence budgets, companies like Zen Technologies are likely to witness steady order inflows. The CTN order, combined with Zen’s ongoing projects, is expected to contribute positively to both revenue and profit margins in the medium term.

Investors reacted positively to the news, with Zen’s shares trading higher in early deals, reflecting market confidence in the company’s growth trajectory and its expanding role in India’s defence sector.

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