• Cannon manufacturing plans: Zen Technologies received an Arms Act license to manufacture 12.7 mm, 23 mm, 30 mm, and 40 mm cannons, with production expected to begin in FY27 and FY28. The company plans to follow a low-CAPEX model by building critical components in-house and outsourcing mass manufacturing through tie-ups.
• Opportunity and order book: Management estimates the market opportunity for these anti-drone-integrated and standalone weapon systems at a couple of billion dollars. The company's existing order book across simulators and anti-drone systems stands at over ₹1,400 crore.
• Financial targets: Zen Technologies aims to achieve a cumulative revenue of ₹4,000 crore over the next two years. Management is targeting a sustainable 35% EBITDA margin, citing cost advantages over foreign hardware competitors.
• Future revenue mix: Revenue is projected to reach an approximately 50-50 split between training simulators and anti-drone hardware systems, with hardware potentially expanding faster due to heightened global defense demand.