Defence stock Zen Technologies gained 2.5% in intraday trade on the BSE on Tuesday, 7 July, looking set to extend gains for the second consecutive session. According to reports from Stock Market News, the share price opened at ₹1,879.85 against its previous close of ₹1,852.25 and jumped to an intraday high of ₹1,898.95.
As reported by CNBC TV18, Vector Technics, a subsidiary of Zen Technologies, expects its expanded manufacturing capacity to generate ₹400 crore in revenue as demand for drone propulsion systems rises. The company has increased its annual production capacity to three lakh drone propulsion units and plans to cater to growing domestic demand while expanding its presence in export markets. Co-founder and CEO Prudhvi Raj Pakalapati stated that domestic orders will remain the primary growth driver, while exports could contribute around ₹100 crore in revenue over time.
As reported by Stock Market News, Zen Tech announced in an exchange filing after market hours on 6 July that its subsidiary, Vector Technics' Shamshabad facility, has reached capacity to manufacture 3,00,000 propulsion units a year. According to CNBC TV18, the company is now the only Indian company that designs and builds every component of the propulsion stack in-house, across both electric and internal-combustion propulsion systems. The business currently generates gross margins of 60-70%, reflecting the value of its integrated product offering that includes motors, propellers, electronics and power distribution systems.
According to CNBC TV18, Vector Technics reported ₹10 crore revenue in FY26, compared with negligible commercial revenue before Zen Technologies acquired a 51% stake. The company's monthly revenue has now reached ₹3-5 crore, translating into an annualised run rate of about ₹50 crore. Pakalapati disclosed that the company currently has an order book of ₹40 crore for the current financial year, which it expects to execute through supplies to drone manufacturers. The company supplies propulsion systems to drone manufacturers rather than bidding directly for government tenders, with customers including companies such as Tata and ideaForge, where propulsion systems account for 30-40% of a drone's bill of materials.
As reported by CNBC TV18, while the company remains focused on the domestic market, it has begun pursuing export opportunities over the past six months. Pakalapati highlighted that domestic demand alone represents around ₹300 crore in potential revenue, while exports could contribute another ₹100 crore. The factory has been designed to support significantly higher production as the domestic drone ecosystem expands, with the company equipped to scale production further if demand continues to rise. Zen Technologies' investment has enabled Vector Technics to expand capacity, automate production and strengthen its engineering team.
