In the dynamic landscape of India's defence ecosystem, two companies—Zen Technologies Ltd and Paras Defence and Space Technologies Ltd—stand out as key players in innovation and indigenisation. As geopolitical tensions, particularly with Pakistan, continue to influence defence strategies, these companies are emerging as critical contributors to national security and preparedness.
1)Zen Technologies Ltd
Zen Technologies has carved a niche in the field of military training and counter-drone solutions. It specializes in providing simulation-based training systems, making it a cornerstone for modern defence readiness.
- Product Portfolio
Zen offers a diverse product range that supports comprehensive training and operational capabilities:
Live Ranges: Portable indoor and outdoor firing ranges for close-quarter battle, tank, and air-to-ground scenarios.
Live Simulation: Includes laser-based TacSim and ACTS simulators designed for realistic military and law enforcement exercises.
Virtual Simulation: Covers a wide array of simulators including for ATGMs, tanks, UAVs, and mortars, ensuring scalable training solutions.
Combat Training Centres: Integrated setups combining live, virtual, and constructive simulations for holistic training.
Operational Equipment: Includes tactical innovations like ShootEdge for corner shooting and advanced anti-drone systems equipped with radar and RF jamming capabilities.
- R&D and Innovation
Zen boasts robust in-house R&D capabilities. The company continuously introduces new-generation simulators and indigenous anti-drone solutions tailored for Indian operational environments. Its focus aligns closely with the Atmanirbhar Bharat initiative, contributing to import substitution and technological self-reliance.
- Order Book and Revenue Outlook
With an order book valued at ₹816.91 crore, Zen is well-positioned for growth over the next 2–3 years, bolstered by rising defence budgets and increasing demand from the Indian Army and CRPF.
- Export Exposure
Zen exports to more than 25 countries, with its products meeting NATO and international standards. The company has cultivated a strong presence in the Middle East and Africa, with consistent repeat orders.
- Stock Performance
Zen Technologies' shares have delivered a negative return of 21% over the past six months, reflecting investor caution despite its long-term growth prospects.
- Shareholding Pattern
Promoters: 49.05%
FIIs: 5.95%
DIIs: 9.47%
Retail Investors: 35.10%
2)Paras Defence and Space Technologies Ltd
Paras Defence represents a diversified player in India’s defence and space technology sector. Through its subsidiary, Paras Anti-Drone, and recent partnerships, it is positioning itself as a future leader in drone and space technologies.
- Product Portfolio
Paras operates through two main verticals:
Defence Engineering (54% of H1 FY25 Revenue): Provides advanced defence electronics, control systems, missile motor tubes, and EMP protection solutions. This segment saw a revenue growth of 104% from FY22 to FY24.
Optics and Optronics (46% of H1 FY25 Revenue): Focuses on infrared lenses, submarine periscopes, space optics, and EO/IR systems. However, this segment experienced a 25% decline in revenue from FY22 to FY24.
- Strategic Focus and Innovation
Paras Defence emphasizes niche technologies such as electro-optics, space imaging, and precision engineering. Collaborations with DRDO and ISRO provide it a strategic edge. A recent joint venture with Israeli company Heven Drones enables the development of hydrogen-powered drones—an innovative step that could offer first-mover advantages in India.
- Order Book and Revenue Visibility
With an order book worth ₹881 crore, the company shows strong potential. However, it operates in a project-based revenue model, which can lead to lumpy financials due to long development cycles.
- Clientele
Paras works with prestigious institutions including HAL, ISRO, DRDO, BEL, TATA Power, and global entities like Elbit Systems and Controp. Its top five clients account for over 50% of its FY24 revenue, indicating a concentrated but high-quality customer base.
- Stock Performance
Paras Defence's shares have returned a robust 45% gain over the last six months, reflecting strong investor confidence and momentum in the company’s growth strategy.
- Shareholding Pattern
Promoters: 57.05%
FIIs: 5.24%
DIIs: 1.54%
Retail Investors: 36.16%
Both Zen Technologies and Paras Defence play pivotal roles in India's defence modernization and preparedness, especially amid growing regional tensions. Zen focuses on simulation and anti-drone systems with strong export credentials, while Paras is making bold strides in advanced manufacturing, space optics, and drone innovation. In terms of stock market performance, Paras has outshined Zen recently, but both companies remain strategic assets in India’s defence narrative.
Disclaimer:
The information provided in this article is for educational and informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any securities. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
