Defence Stock Zen Technologies Surges on Major Government Order
Shares of Zen Technologies Limited experienced a significant upswing, rallying more than 3% on the Bombay Stock Exchange (BSE). This positive momentum was triggered by the company's announcement of receiving a substantial order from the Ministry of Defence, Government of India. The small-cap defence stock climbed as much as 3.27% to reach an intraday high of ₹1,443.05 per share.
Details of the Major Defence Contract
The company confirmed it has been awarded a significant contract valued at ₹108 crore, inclusive of GST. This order is specifically for the supply of tank crew gunnery training simulators, which are advanced systems designed to enhance the skills of armoured vehicle personnel. According to the company's statement, the entire order is scheduled to be executed within a year.
Highlighting the strategic importance and economic efficiency of the simulators, Ashok Atluri, Chairman and Managing Director of Zen Technologies, referenced a TERI study. The study revealed that even a modest 15% penetration of such crew gunnery simulators can lead to annual savings of approximately ₹1,123 crore for the Indian armed forces.
"This translates to an impressive 18:1 return on investment on an initial outlay of ₹61 crore," Atluri stated. He emphasized that these systems are not merely training tools but act as force multipliers that conserve valuable resources, allowing for further investment in military capability building.
Strategic Context and Financial Standing
This procurement is a direct result of the Ministry of Defence's Simulation Framework, which was introduced in September 2021. The framework officially recognized simulation-based training as a strategic priority for the ongoing modernization of the Indian armed forces.
This new order adds to Zen Technologies' robust pipeline. The company's consolidated order book as of 30 September 2025 stood at a healthy ₹675.04 crore, indicating strong future revenue visibility.
Zen Technologies Share Price: A Performance Snapshot
The recent order provided a welcome boost to the stock, which has faced pressure in the shorter term. While the share price managed a gain of just 1% over the past one month, it has declined by 6% over three months and fallen significantly by 25% over a six-month period. On a year-to-date (YTD) basis, the defence stock has witnessed a drop of 43%, and it is down 22% over the past year.
However, taking a longer-term view reveals a much stronger performance. The stock has delivered impressive gains, having jumped 86% in two years. Most notably, it has been a multibagger for investors, generating staggering returns of 1,705% over the past five years.
By 10:35 AM on the day of the announcement, Zen Technologies share price was trading 1.20% higher at ₹1,414.00 per share on the BSE.
