• Product expansion: Zen is broadening from army simulators to naval and air-force simulators, adding hard-kill counter-drone systems, and entering robotics to automate existing products and reduce human exposure in combat. Looking ahead, Atluri estimated simulators could contribute 40 to 50% of revenue, counter-drone systems 30 to 40%, and the rest maybe 20%.
• Indigenous systems: Atluri said Zen developed its soft-kill suite in India and is adding indigenously developed hard-kill options. Its Vector Technics investment supports local production of drone components and interceptor drones priced as low as $10,000, compared with Shahed-type drones at $20,000 to $30,000 and cited foreign interception costs of $4 million.
• Order opportunities: Zen had received about ₹400 crore-plus of simulator orders against a stated ₹800 crore opportunity, with another ₹400 crore expected in this fiscal year; Atluri cited a current order book of ₹1,400 crore. Of a potential ₹20,000 crore tender, he estimated about ₹6,000 crore worth of orders may be eligible for Zen to bid on, with closure potentially in 6 to 12 months; the outcome depends partly on whether the government prioritizes IDDM procurement.
• Export outlook: Atluri said exports could reach 30 to 40% of the business in the next 3, 4 years and are margin accretive. He cited demand for counter-drone systems during wars and said simulator demand is flaring up as countries prepare for future conflicts.
• Margins and partnerships: Atluri expects some margin pressure 2 to 3 years away if Zen moves into highly competitive commodity products, but said margins should remain around that level overall and absolute profits should grow year-on-year. The company still had some QIP funds to spend, had no fundraise plan on the table, and favors technology and OEM partnerships over low-cost contract manufacturing to protect management bandwidth for R&D.