Hyderabad-based Zen Technologies, a defence training solutions company, expects robust revenue growth backed by a strong order book and supportive government policies.

The company has set a revenue target of ₹900 crore for this year, nearly doubling its 2023-24 (FY24) revenue of ₹430 crore. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin is expected to be 35%.

“On average, for the next three years, growth would be about 50%. We are still hopeful that we would be able to achieve that on an average,” said Ashoka Atluri, Chairman and Managing Director of Zen Technologies.

Apart from supportive policies, Atluri highlighted demand for intellectual property-driven innovations as a key factor behind the company’s growth outlook.

Zen Technologies has already seen stellar growth in recent years, with revenue surging by 166% in FY24 and 200% in 2022-23 (FY23), making it one of the top wealth creators of 2024 with a 200% stock rally.

The company, which previously spent around ₹20 crore on research and development, plans to increase its R&D expenditure to ₹30-40 crore this year and further ramp it up to ₹50-60 crore, focusing on high-growth and opportunistic areas in defence.

Zen recently expanded into the US market. It signed a Memorandum of Understanding (MoU) with Florida-based Applied Visual Technology Inc., doing business as AVT Simulation, on December 5 in Florida.

Atluri sees significant opportunities in the US market as the government shifts towards efficient procurement practices, signalling the end of prime contractors’ dominance.

Having attended several expos, Atluri is confident that Zen Technologies is well-positioned to cater to the evolving needs of the market. The US is emerging as a key growth area with substantial opportunities on the horizon.

The company, which has a market capitalisation of ₹21,751 crore, has seen its shares rise 204% over the last year.

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