Good evening, and a warm welcome to all. Thank you for joining us on our Q3 FY 2026 earnings call.

It's my pleasure to take you through our financial performance for the quarter. Zen has delivered a resilient performance for the quarter, reporting a 16.8% growth in consolidated revenue and a healthy profit after tax growth of 30.6%, despite headwinds in terms of the timing of the order inflows over the last 9 months.

The profitability for the quarter is driven by favorable product mix and a continued focus on cost discipline. Consolidated revenues for the quarter stood at ₹177.8 crores, which is a growth of 16.8% year-on-year and 2.4% sequentially.

Operational EBITDA for the quarter stood at ₹66.8 crores, reflecting a year-on-year growth of 51.1% and a sequential increase of 3.2%. Operational EBITDA margins stood at 37.6%, higher by 870 basis points year-on-year and 30 basis points quarter-on-quarter.

The quarter-on-quarter growth in profitability was partially offset by higher employee benefit expenses, which is driven by the recognition of salary arrears following the completion of our annual appraisal cycle across the group, increased ESOP expenses on account of fresh employee stock grants, and a one-time impact arising from the implementation of the new labor codes. As a result, the profit after tax for the quarter stood at ₹55.7 crores.

Profit after tax as a percentage of revenues was at 31.3%. Now coming to the year-to-date consolidated performance, revenues for the 9 months FY 2026 was at ₹509.6 crores, a decrease of 24 21.4% year-on-year.

Operational EBITDA stood at ₹196.2 crores, a decrease of ₹39.3 crores, or 16.7%, year-on-year. Operational EBITDA margin was at 38.5%, which is higher by 220 basis points year-on-year.

The consolidated profit after tax stood at ₹170.68 crores, which is lower than the same period last financial year by 8%. Profit after tax as a percentage of revenues was at 33.5%.

Now coming to the order book, as disclosed in the investor presentation, Zen has received orders aggregating to ₹931 crores in the past 4 months. The consolidated order book position as at 31st December 2025 was ₹1,082 crores, and as on 31st January 2026 was ₹1,427 crores.

The liquidity position of the group continues to remain strong, with around ₹1,188 crores available in cash and cash equivalents, and a net debt position of 0 as at 31st December 2025. This is the brief highlights of our financial performance up to Q3.

We can now take questions. Thank you.

Thank you for the opportunity. Am I audible?

Yes, please go ahead.

Yeah. Thank you once again, and congratulations on the order wins for the last quarter.

They were pretty heartening in terms of the visibility that you had given us. My first question is based on your expectation of executing 6,000 crores in 3 years, most of which would happen in FY 2027 and '28.

You had indicated to having capacities to execute up to 2,000 crores annually currently. In FY 2028, when you look at the math based on your execution plans, you would have to execute in excess of 2,000 crores annually.

Could you give an overview of how do you see capacity expansions happening in terms of annual revenue executability post expansion, like currently it is 2,000 crores. Post the expansion, what would be the capacity in terms of annual execution, then the capex involved and the timeframe?

Thank you, Rajamohan, for asking the question. Just to recap what we have been saying that for FY 2026, '27, '28, we had indicated that we would be able to do a turnover of 6,000 crores.

Based on that, the question from Rajamohan is if you were to execute whatever the execution, do you have the capacity to execute the remaining 5,000-plus crores? At this point in time, we are revisiting our order book and the future, and what we have said is that this year, if we are not to take this year as the base year, but the last year as the base year, and assume that 50% growth in the next 2 years, even though it would be about 3,300 or so, but we expect about 4,000 crore of execution.

We're actually scaling down our targets at this point in time. With respect to the 4,000 crores, the new target that we have set for ourselves, we do think that even if we were to execute some part in the FY 2027 and the major part in FY 2025, we do have the supply chain to take the order book and execute the order book.

Yes, to your question, that we already have scaled up with our supply chain that this 4,000 crores kind of ability. What if the orders are much larger?

I think as we go into the next year, we are building additional capacity. We are investing in both machinery and plant and of course, even product R&D facility we're investing.

That should create a good pipeline and also enable us to execute the orders if the FY 2028 becomes very large.

Mr. Rajamohan, please unmute your microphone.

Yeah. Mr.

Atluri, based on your answer of 4,000 crores that you're expected to execute over the next 2 years, can one presume that around 1,500 crores would be what we would achieve in FY 2027 and say another 2,500 crores in FY 2028? You would be able to have the capability to execute over 2,000 crores, that is 2,500 crores in FY 2028?

That's right. I think I wouldn't give the exact figures between the 2 years, but yes, I think you are right on the scale that between the 2 years, we should be executing and if we were to exceed 2,000, we should be able to execute.

We should not have any operational challenges in delivering on the order book.

Okay. My second question is again a strategic perspective from someone who's sitting at a vantage point.

When we look at anti-drone and simulators in general, with nuances like hard kill, combat training zones, naval air force simulators, etc., could you give a top-level view of what kind of budgets India has been historically running on, and how much growth over that one can expect over the next 3 to 5 years?

In the case of training simulators, the training preparedness, thanks to the current situation world over, at least 6, 7 years back, nobody would think about war happening. Then 20 in 2020, the Armenia-Azerbaijan happened, then Ukraine-Russia happened.

Now I believe there are some 20 wars going on. One war which people could never imagine is between Thailand and Cambodia.

Everyone is, I don't know, fighting or itching to fight. Suddenly preparedness has become very, very valid.

In that case, in Indian scenario also, Indian government is really, really scaling up, and they are allocating large funds for the training budget. Of course, and with respect to the anti-drone systems, as you see more than this 300 crores worth of upgrade order, the operational requirements are immediately required.

Then a hard-kill requirement has come. I think this will be almost on emergency basis, the procurement will keep going on.

To your question, I think not only in India, but worldwide, both these segments, the training segment and the anti-drone segments, are scaling up. To your question, how much funds are being allocated, that's a figure that the government has not shared with us.

We think this is much, much more than what we are estimating for what Zen will be getting the orders for. It's a much larger figure.

I would say that it's running into thousands of crores. Yes, I think to your question whether there are enough allocation happening for what Zen is planning, the answer is yes.

Can I squeeze in one last question?

Please go ahead, yeah.

Yeah. Generally, when you look at this Zen Technologies' acquisition that recently happened, and in synergies with say ARIPL which you previously acquired, what is the outlook on naval and hence associated simulation?

Is it basically as a combination, [Ananve?] and ARIPL, are they carrying you into a different dimension of sort?

Objectively when we look at the combine, can it evolve into a say 500-crore entity over the next 3 years or 4 years or whatever?

One thing is that in the training segment, one of the order we got was something called as combat training node for 100-plus crores. That's actually a breakthrough thing that we have been trying to market for almost a decade, telling to everybody that this is how integrated training between various arms of the army is carried out.

This was a very, very big thing in the sense that it is a first order that we got. This will become a showcase not only for India, but worldwide.

We personally think they will sell in tens of if not in hundreds. This is only for the army.

A similar thing for the navy is also on the way that we're creating a completely full-fledged integrated naval training center. And [Ananve?]

actually had two of the very, very crucial simulators that we were trying to build ourselves. One is called the tactical trainer, second is the submarine simulator.

Both of them have been developed and delivered. They're very, very complex simulator.

As we are speaking, the [Ananve?] simulator for tactical trainer and submarine are having a huge demand in the overseas market.

In fact, we were in I/ITSEC in US, that's a world's largest simulation exhibition, and there's a lot of interest in this [Ananve?] simulator that you are saying.

What is the synergy being unlocked by the combination of [Ananve?] and ARI is that the gentleman who is heading [Ananve?]

, Commander Ahluwalia, he has become the Chief Technology Officer across all the naval effort and Air Force effort. Commander Ahluwalia, even though he's a naval officer, he's a aviator.

In addition to doing the efforts with respect to naval simulator and a complete set, he's also building Air Force simulators. I think to your question whether it will be 5 We already are, I think crossing 200 crores or something like that, but I think 500 crores will be a very conservative estimate in 3 years.

It will be very, very conservative, and we are very, very happy that this both the acquisitions are very, very synergistic. Thanks for the question, Rajamohan.

Great, Mr. Atluri.

Thank you very much. Best wishes.

Yeah. Hi, good evening, yeah.

Hope I'm audible?

Yes, please.

Yeah. Mr.

Ashok sir, regarding this guidance of 4,000 crore in the coming 2 years, how do you plan to achieve by introducing some new other products or some acquisitions, as we are sitting with approximately 1,000 crores of cash? We had a lot of acquisition in the past.

How this will shape up?

The visibility for the, 4,000 crores, we we have a strong the way we are looking at is that we were saying that the order book could be about 1,500 to 2,000 crores by the year by this financial year-end, and we we still are very hopeful that it will happen. Maybe there will be a slight spillover, but, the way we are seeing things, I think that looks very likely.

The, the 4,000 crores looks reasonably we look reasonably confident at this point in time, and we are hoping that, it exceeds that by a far larger number. With respect to the, what are there any future acquisitions, since we're sitting on, almost 1,100-plus crores of cash, the answer is yes, we are looking very aggressively for investments and not only in India, but overseas.

We're talking to various companies. Again, if you see this EU and FTA with EU is a very, very big deal for India, and it's a bigger deal for Zen Technologies, because we know the simulators that we have are absolutely world-class, the anti-drone system that we are talking about are also very, very highly advanced, and the amount of R&D that we are doing currently in both this segment is staggering.

If we are able to actually, pull it off, we get a proper access, and we are able to tie up with the EU partners, this thing would be very, very big. I I think we look forward.

This is a fantastic move that the Government of India has done, and companies like Zen will benefit tremendously from it. Yes, we are also and this will because we have the, gunpowder to actually go and expand our marketing efforts into Europe.

This also has gives us opportunity to buy companies which have deep technologies, which can be used both to sell overseas as well as back in India.

Good, sir. Good to hear that.

Regarding the order book execution, we have completed that one order within the before the timeline. The existing order book also so we can expect it to be as it is a 12 months of timeline, but still maybe we can expect it to be executed in 6 to 12

months time frame? I think most of it should be executed within the timeline.

We think that if the annual maintenance contracts don't get executed, the complete order book will not get executed. If you see we'll be differentiating between the equipment and the actual AMCs.

The AMCs, annual maintenance contract are typically between 4 to 5 years of execution. On an average, they may get probably absorbed in 3 years.

With this, yeah, I think, otherwise, typically, we should execute most of the order book by 18 within 18 months.

Lastly, any new products so other than this ADS and our simulation? We are talking about naval also.

Do you see any other big product like ADS that is in card or in pipelines, and also about naval products futuristic, how big it could be, we can say that it could be near to equal to ADS or Can you throw some light on any upcoming products or the new products which are getting matured?

To your question, is there any big blockbuster product like ADS? The answer is no.

I think that's too big a product. Your question, are we launching some new products?

I think there are going to be very, very interesting launches in the next, I would say, 1 year. I think, but I don't want to pre-empt my team by saying what they are going to be, but I think some of them will really literally blow people away.

We expect them to be launched in the next few months. Keep tuned in.

Again, the thing is Zen is not a company that's trying to go and tie up with people and try getting the technology and manufacture here. We don't believe in that, actually.

We don't think that we should be manufacturing coolies or assemblers we don't want to be a Foxconn, we want to be an Apple. How do we actually create new products?

The extreme R&D that is going on is again not to create a me-too product, but absolutely cutting-edge, world-first product. That's what we are putting in effort for.

Yes, to answer your question, yes, there will be new launches, but I cannot reveal at this point in time.

That's all from myself. Thanks a lot, and all the best.

Thanks, Bala. Thank you so much.

Am I audible?

Yes, please.

Thank you, sir. My question was regarding the simulator order that we were expecting for quite some time, that was part of the non-emergency ordering process, and probably that was the reason it has been kind of delayed.

I needed an update about where are we in terms of that ordering status.

A long time back, I had given an example of Angulimala in one of my annual reports. Have you heard about Angulimala?

I don't know. Very quickly, I'll recap the story.

Angulimala was a famous dacoit who used to kill people, and Angulimala he would cut the thumb and put a garland of that around his neck, that is Angulimala. Then one day Buddha was passing through, and he decided to kill Buddha because he was the last person to complete his garland.

When he started running after Buddha, he ran very fast. No matter how fast he ran, Buddha was almost one step ahead of him.

Buddha was walking. I think we are having the same feeling here in the simulator orders with regular budget, where we are running very fast behind it, but it's maintaining a equidistant distance from us.

Again, to be fair, on the lighter side, but to be fair that I think we expect again, without holding us responsible, things are moving in that direction, and we expect before, in all probability, before March, it may come. It may spill over to the next first quarter.

Things look like before March, the order may be placed on us. That's for the simulator order.

Again, this delay was caused by the operational crisis the government faced, but I think that's been resolved now. Things are moving a little faster than they were before.

Sir. My second question was on the kind of situation we faced in the first half wherein we had a weak order book to start with in FY 2026, and that led to muted first half.

What are we trying doing from our side to de-risk our financials from this kind of volatility in order book?

The thing is that as of now, we have a order book and it's building fast. I think in the immediate future, there is no crisis.

To your question, in future, what are we trying to do is, one thing is we are really ramping up our export efforts so that even if the Indian orders get delayed, we keep getting the export orders. We are hoping that the new Defense Acquisition Process 2026 is going to be released very soon.

I think the draft will be released anytime, and that will enable us to execute or get orders in a faster procurement cycle. The export market and the faster cycle and this emergency procurement, we expect them to continue for some time.

All put together, I think, will probably not create a situation where our order book has depleted. I think you are very right in the sense, Sanjeev, that your question is if none of our investor doubt our capability to execute the order book, but if the order book itself depletes, what can we do?

I think that's a very sticky position to be in, and we hope we will not get to that position again.

Right, sir. What would be the AMC portion in our order book?

You go ahead.

The AMC portion as at 31st January, out of the total order book of 1,047 1,427 crores, is 338 crores.

Sir. That's it from my side.

Any further questions, I'll come back. Thank you.

Thanks, Sanjeev.

Thank you for the opportunity. Am I audible, sir?

Yes, please go ahead.

Yeah. Sir, my first question pertains to our revenue target vis-a-vis the order book.

In order to get that 2,000 or 3,000 kind of the range, we would need to have a running order book of 2,000 crore. Currently, we are at 1,000 crore.

Just wanted to understand which are the new segment or pockets which you are targeting, and a little bit on the confidence level to get this in the next 8 or 10 months to get the order book to almost 2, 2.5 thousand crore, despite being 1,000 to 1,500 crore of the execution targets as well. Sir, seems to be a little bit tall figure, just wanted to understand which segments are actually new to us which we are targeting, and what are our thought process or confidence level on the same?

Vikas, thanks for the question. Your question is that we have an order book of about 1,400 crores, and out of that, about 1,100 crores is equipment and 300 crores is, three plus one is how will we execute 1,500 crores is that question?

I think the order book position will improve, I think, pretty soon to about what we are saying about the simulator, etc., orders. It should go to 2,000 crores, and you should be able to see that next year if we execute as per the timeline, we should hit the target that we are envisaging for the next year.

Our thing is by the next financial year-end, the order book should again be around 2,500 to 3,000 crores to actually hit the complete target of 4,000 crores. We'll have to wait and see for that, but as of now, for the next year, things look very bright for us.

Yeah. Let me just slightly rephrase this question.

Out of this 2,000 crore of execution, what portion do you think would be coming from the simulation, which is your previous business where you are on top, and what portion do you think from the new segment like electronic warfare, drone component, because that is where the growth path is for you incrementally? If you could just highlight that?

I think we will continue to be a little heavy on simulators as of now, given the order book that we have. We will have a little heavier simulator and expectation.

Again, the growth that may come from anti-drone system may be much, much higher, and the way the government is going, and the way we have been able to get the orders. Again, a lot of people are claiming that they have got the orders and all that, but the centralized orders into which the heavy screening goes and actual capabilities are seen, especially the track record of the company is seen, and as our investors know, the Zen simulators were actually tested at operational crisis level.

Given this, that's why we got upgrade order, and we also got a new order, and also we got the order for hard kill. Now this is a combination that's not there at all.

Given these things, and the actual threat which the nations are facing, including India, from drones, you're absolutely right on track that this will actually grow. As of now, what we see immediately is that the simulators are also very, very large.

Noted, sir. Sir, my second question pertains to our standalone versus subsidiary performance.

If I see that our standalone performance is obviously because of quantum of order was down, while subsidiaries was going up, just wanted to understand that since subsidiaries margins are less right now, what is our thought process on the incremental margins coming from subsidiary bringing out the total consolidated margin targets for FY 2027, '28?

Yeah. Vikas, most of our subsidiaries, the acquisition that we made for ARI, we are still in the process of integrating it into our operations.

ARI on a standalone basis delivers currently around 25% as PAT. Our target is once the complete integration of ARI is done with the operations, it will average closer to what Zen averages in the long term.

Most probably the small dip in the consolidated performance that you're seeing currently would go away once the complete integration with ARI is done.

By when we are expecting this?

Most probably you would see that coming in FY 2027 itself, the impact of the integration with ARI.

Okay. For this electronic warfare and drone business, given the competition is heating up there, our long-term assessment is margins would match our current, or usually logically it should be on a lower side, right?

How should we look at the margins there once you achieve your targeted level of production and sales?

I think the anti-drone system margins have been lower historically than simulators, because that's a new product we got into, and there was competition at that point in time. As we see that the gap between us and the competition is growing every day as we add more and more features, it started with just a soft kill, but then we added spoofing, now we have added a hard kill, and now as we go ahead, we are adding a lot of other things, again, as I was saying that there are new products coming out in this regard.

I think, but very frankly, as you see your intuition may be right that there will be margin pressure on us, but will we be able to maintain the predicted 25 PAT margin at a consolidated level? I think we feel confident about that.

Noted, sir. That's all from my side.

Thank you for answering the question.

Thank you, Vikas.

Hello, hi. Am I audible?

Yes, please.

Yes. Congratulations on great set of order wins.

My question is first is, sir, you mentioned about the emergency procurement orders coming back after the previous tranches. Anything where we are participating or any order pipeline in near term which could further boost our orders?

Yeah. With respect to simulator order, we are expecting some order, Dipen.

I think probably, again, I was thinking by March, but we never know the pace of the government and their compulsions. Based on that, the order book should improve significantly in the next couple of months.

After that, we know that a lot of very large inquiries are coming for the anti-drone systems and even training equipment. I think yes, the pipeline is very, very strong.

Sir, you also mentioned about opportunities opening up from the export area. What kind of contribution can we see starting maybe from FY 2027 onwards?

I understand that it will be a marginal start, but what kind of a contribution can we expect from geographies like US where you have presence, and also now EU or Middle East opening up? What kind of contribution can we expect from your export region?

We actually can visualize some orders coming from Middle East, Africa, and Southeast Asia. Again, I don't want to put a number, but I think it may be anywhere between 20% to 30% of our total turnover.

Especially for FY 2028, I would say. Those things are really being negotiated and, fortunately, our standing with the international market is very good as a country, and they like companies that has the IP control, because, again, they are also worried like many other countries that what back-door software is there, nobody would believe a country like China with their software.

In our case, India has that standing that morally we are not a country that let down any of our allies. Again, we have seen that if you don't own the IP, pagers can become bombs, nuclear reactors can be compromised.

It's a big challenge. For the export market, we think it's going to be very big number, especially in FY 2028.

Noted, sir. Sir, now just a small bookkeeping question, sir.

Can you help us with the order book split between simulators, anti-drone, and overall export orders in the order book?

Sure. As at 31st January, the total order book is ₹1,427 crores.

Out of that, the anti-drone system and simulators are equally distributed of 50%, 50%. Between domestic and exports, it's more heavily inclined towards domestic.

Domestic is around 93%, and the exports would be around 7%.

Got it, sir. Sir, that's all from my side.

Thank you so much, and wish you the best for new order wins going ahead.

Thank you.

Thank you so much. We'll take our next question from Ashish Soni of The Family Office.

Mr. Ashish, please go ahead with your question.

First question, I think, initially you were thinking that it will be 5,000 crores order book in next 2 years. What changed because it got decreased?

What are the factors, if you can just

One thing is that the order book, Ashish, that we were expecting a lot of orders to come in the area of simulators and the regular procurement, had it gone on and the pace at which it had gone, our order book would have been very, very high, so that we probably would have still been able to say that we are on with the target. What changed is the pace at which government was processing the orders.

The orders got delayed in the procurement, and that's why this year got hit. Next year also, we had to readjust the base year to the previous year.

I think that is the reason we had to reduce the thing. Again, as we are being cautious here, and we hope that we are wrong in this case and we do much more than what is being projected.

Second question is on I think you wanted to set up a manufacturing in US specially to cater to NATO countries. Now with this sort of FTA getting a green signal, would it be better that if we try to export from India, is it possibility for at least for the European Union countries?

Now with all this tensions across with US and NATOs going on, just can we throw light on the US as well as this part if at all you can?

I think, Ashish, you got the thing right. Your intuition is right in the sense that the US thing is not going as fast as possible.

We have built a team there, and we are interacting with them and trying to We have technologies that they want, they came, saw, and they said we are very keen on this. We are complying with a lot of regulations there, they're highly regulated defense economy.

We are getting ourselves registered with appropriate authorities. The EU FTA came as a fresh breath of air for us, and we are actually talking to consultants and all.

It was just declared a couple of weeks back. We really, really are now looking at the EU as probably the base from which we can operate for the NATO.

Again, US market is very huge. It's not a market to scoff at.

US efforts are going on at this point in time, but if things work out better for us in the EU market, in the next couple of months, we'll have a clarity, we would like to set up there. Again, we also are looking at targets in the EU market which we can acquire and enhance our bouquet of offerings.

Sir,

one last question. Israel, I think Netanyahu said that they want to trust only India, US, and Germany for their supplies or weapons.

Do you think any possibility for us to work with Israel specifically in this area, based on the statement which came recently, I think last week, from their Prime Minister?

We have never worked with Israel, we never did any deal till now. We have never done anything with them.

Let us see if there is any opportunity that presents us. It's not that we don't like to deal with Israel, but we are company that is focused on creating our IP.

I think Israeli companies like people who want to do manufacturing, but are not technically capable. We are not there.

We may not fit their idea of an ideal partner, because we want to really make India Aatmanirbhar in the proper sense, not just manufacturing facility, but creating the IP, owning the IP, and working on creating next generation of products.

Sir. Thanks, and all the best.

Thank you.

Hi. Good evening, everyone, and thanks for the opportunity.

Couple of questions from my side. Few quarters back, we introduced three or four products like Barbarik, Prahast, etc.

Just wanted to get an idea because of the focus of the government on AI-driven platforms and there are a few players who are thinking of putting up such facilities, and we have a head start. If you could elaborate on the opportunity that you see overall in this space, and how far we have progressed on the development of these products?

That is the first question.

These products are managed by our associate company AI Turing. They have a trio, Abhishek, Komal, and Tushar, who manage the company.

Very frankly, we think what they have created absolutely marvelous. To your question, where are they?

When I said that we got the hard kill order including anti-drone system, shooting down the drones, it is their product that was part of the solution. We have started selling their products, and we think that they are also on the verge of getting a lot of orders.

By the FY 2027, you will see they will make a meaningful contribution to our overall revenues and profits.

That's nice to know, because at that time it was supposed to be a next vertical for us in terms of earnings apart from anti-drone and simulator. The second question is essentially on European FTA, and you mentioned in your prepared remarks that you see opportunities over there.

Is it possible at this stage, I know it's still very, very early, but if you can highlight some of the platforms/products that we would be kind of targeting in that region, because some of the companies particularly in radar electronics who have their own IP, they have got a head start over there. Just wanted to understand from your perspective, because you are also an IP-driven company, what kind of opportunities you essentially see over there?

I'm talking about medium term here, not something quarterly basis or something like that.

In medium term, when you're talking about, I'm assuming at least 2 to 3 years is what would be qualifying there. I think yes, again, the Europeans also love the fact that this technology is completely owned by India, and they want to deal with us.

We think that the technologies that are anti-drone system and simulators, which are our mainstay, both have a huge market in Europe. One thing very interesting is that the Europe at present is perceiving Russia as the biggest threat.

When they want to really prepare with Europe versus Russia kind of a situation, India owns Russian equipment, and the simulators that we have are mostly Russian equipment simulator. They actually can do a full-fledged war gaming with our simulators and their simulator.

Again, we can make simulators because the engines underlying them have the same physics. Different tanks, but so we can modify them.

Now if they want to try out how will our simulation work against Russian equipment, we are there. We are the exact fit for them for the future needs.

I think, in addition to the anti-drone systems, even simulator market is going to be very huge. We are coming up with offers that they may like, where we don't mind doing a service-based offering also there.

I think, yeah, to your question, they would love to have a IP-owned solution there rather than somebody just pushing someone else's solution.

Okay. Thank you.

Thanks a lot, and all the best.

Thank you, Amit. Thanks.

Thank you so much. We'll take our next question from Jatin Jatin of Sahasrar Capital.

Please go ahead with your question. Please unmute your microphone, Jatin.

Am I audible now?

Yes, please.

Thank you so much for the opportunity. Most of my questions have been answered.

I still have a few out of curiosity. Can you describe in an unclassified or a non-technical term how Zen Technologies' counter-UAS suite is designed to detect, track, and classify threats under the presence of let's say an enemy electronic warfare situation?

I'm basically highlighting the Venezuela situation wherein the enemy was doing electronic warfare on our system. How does Zen plan to counter that?

Or our counter-UAS system?

The what we understand is that there was a huge awe-and-shock kind of a thing which was sent, and they not only neutralized the systems, but it also neutralized the people, the bleeding ears, etc. If such a thing is done was done to us, probably most of the electronics in India would also have been frozen.

Now that we are aware of it, we are building capabilities that, these kind of things do not damage us, and we are also, I think, in India, we're also developing similar products, which if they if we are we we can also retaliate with equal or more force, disabling their situation. Again, what we have been doing is we started with basic, range of, commercial drones neutralization and but most of the companies are stuck even now.

They're still neutralizing only commercial drones frequencies. Zen has gone beyond that.

We started with, wideband. We said the commercial will not do, non-commercial also need to be jammed.

We started with 406 GHz. Today we have gone from 100 100 or even 70 MHz all the way up to 12 and 18 GHz.

It's almost becoming band-agnostic. We are not caring where it is coming from, but we will be able to jam them.

Our capabilities are being built, and I think if a Venezuela-like situation happens, we should come out on tops if it were to happen now.

Thank you. My next question is, how does the system distinguish between genuine and deceptive inputs or as false radar tracks, RF signature?

Do we employ multiple sensor fusion and then basically figure out where the real target is, or how do we do it?

The thing is because, again, whether it's an urban area, there is a lot of noise, there is a lot of false alarms. We have, over a period of time, done a lot of AI-based programming, and we are able to suppress false alarms, and the actual alarms are being shown.

The drone threats, if they are fake, they are completely ignored, because otherwise, if too many false alarms are there, we kind of become inured, and we stop noticing them. The only way to do it is actually, based on the operational feedback, keep improving the algorithm so that the false alarms are suppressed and the genuine signal is actually recognized and communicated to the operator.

Got it. Just one small question.

Since we have a very good capability of developing virtual environments for various kind of products, can we somehow use that capability to generate an environment which is infused with a lot of electronic warfare zones, probably for simulating our own drones, our own missiles, how they act in that particular terrain or in that situation? Is it possible?

Yeah. It's called a wargaming kind of environment, where people are fighting war with each other, and, typically, it may be just map-based, but most of the time what we are enabled is, we're saying don't just play on the map, but actually have artificial AI tanks being moved with actual tanks integrate them with the actual tanks.

Yes, this is absolutely possible, and this is a solution. The combat training node is a step in that direction that we have offered, and that's absolutely the number one in the world in terms of what we are offering.

That's going to scale up now, and most of the countries are going to ask this question that is your virtual simulator integrated with live simulation and wargaming simulation? Yes, we are absolutely there, and that is what we think will drive our future growth.

That's pretty much it. It's a pleasure to know that.

Thank you so much, and all the best.

Thanks, Jatin. Thank you so much, yeah.

Thank you so much for the opportunity. It's really heartening to see that Zen is going to be quite a good beneficiary from the EU deal.

My question is that since we are going to work with the EU closely, would that impact our US opportunities?

Not at all, Mehul. I think as somebody else pointed out, would we be operating for NATO from US or from EU?

We are very agnostic. With this FTA coming through, it has completely changed, it's an absolutely new opportunity for us.

I think we are being more openly embraced by the EU as a country than US at this point in time. In fact, it's additional, incremental opportunity that has come.

The overlap may be executed from either US or from EU, but it's absolutely a positive development.

Sir. Sir, my second question is that in the last conference call, we had mentioned that there will be orders of 650 crores which will definitely come in H2.

In our opening remarks and various responses to the questions, I understand that we are talking about orders of about 1,200 crores. Maybe I'm missing something here, if you can just clarify

No. We have got the orders, Mehul.

I think more than as promised or a little more than what we promised we have got. Only order as someone raised that what happened to your regular order of simulator?

That was the only thing that did not come through. As I was saying that we should be getting by March.

Otherwise, whatever we have said in earlier calls have already been delivered, almost 600-plus crores of recently we got this anti-drone system upgrade, new orders, hard kill, and then we also got some simulator combat training node as a order, then we also got tank simulators again as an order. If you go through the releases that we have done, now we are at 1,400 crores.

The total order book position is 1,427 crores, and I think that's a reasonable build-up. I'm not something to really celebrate over, but I think from what we were 3 months back to now, it's a very, very good build-up.

Right, sir. Sir, how long will it take to execute this orders worth 1,400 crores?

Yeah. I think, out of that, the equipment is about 1,100 crores.

Most of the equipment orders should be executed in the next 18 months.

Okay. When will our numbers of the top line start getting impacted, from which quarter onwards?

No. I will not say, but next year will be definitely much, much better.

I think we should record the highest turnover in company's history next year. I think it will be very big, yeah.

Sir. Thank you so much, and wish you the very best, sir.

Thank you, Mehul. Thank you so much.

Hi, sir. Congrats on great set of numbers.

My first question is, how big are the orders in size expected from exports? What are the size that we are looking for, how big are they going to be compared to Indian orders?

The second question is, what happened with the Orlando expo simulators? Did they show any interest or anything from our simulators?

What was your first question? Your first question was related to export orders, what was it?

My question is, what are the size of those orders that we are expecting like we got 300 crore and 400 crore order from Indian MOD. What sizes are there from exports?

Okay. The our the the first question is that, we we have got all kind of orders.

We have got 320 crores. Typically, in the case of Indian, our you know orders that we have got, 300 is typically the limit within which the decisions can be done at a, more reasonable level.

As the order sizes increases, goes to 1,000, 2,000, the approval levels keep going up and they are longer cycles. That's why during the emergency procurement, any 300 crore less than order, all the typical size was about 300 crores or less.

We got them. Export there is no such a constraint.

It could be, 400 crores, 500 crores, even 1,000 crores. The kind of orders that we are pursuing are in range from 100 to 800 crores.

We could get any of those orders at that point in time. With respect to the Orlando expo, this is called the International Exhibition for Simulation and Training.

It's I/ITSEC, we call it I/ITSEC for short. It's based in Orlando, and comes the weekend after Thanksgiving, typically the last week of November or first week of December.

We went there. We saw a lot of military American military people coming, and they were very excited, especially with our naval simulator.

They said this is something that they really want. We have got a lot of inquiries from there.

We have the as ARI already has a huge network even in South America. A lot of people even from South America had come, and they've seen this simulator that we have.

I think we we expect orders even from the thanks to the our presence there. Again, it'll it'll be non-US orders that we are expecting faster.

The US orders, again, as I said, that there are a lot of regulatory registrations, etc., process that we need to do before we actually become eligible for the orders. I think we may get EU orders faster than US orders, but let us let us wait and see how the EU plays out.

Thank you, sir. That was it from my side.

Good luck for the future.

Appreciate it. Thank you.

Thank you, Swapnil. Hello, fellow shareholders and investors.

As this year, as we have been saying, it's going to be pretty muted. It's maybe 20%, 25% less than the next year, but we hope that we will be more than compensating it during the next year.

There have been very positive developments. Government has been giving emergency orders.

They have been giving new product orders like for the combat training node that we're talking about, that has been going almost for a decade, but now they really want it. What we think is with the Indian government taking, there'll be huge demand overseas also, because that becomes a reference site for us, and Indian government is very, very open to allied countries to show that.

We think that combat training node is a big, big win for us. Of course, anti-drone system, the R&D is going very, very hard.

We're trying to meet the operational needs. Again, typically, we say that we are not building for an RFP or we are not worried about RFP, we actually want India to win wars.

What is the product that we need to have even to handle the actual threat. That way, anti-drone systems are also working very, very in the right direction.

Again, the EU FTA was a very big deal, and I think we should be getting a lot of benefit out of it. I'm very excited, and I'm going to Europe, and I think in the next earnings call, there will be something interesting about EU.

One thing I want to also refer is that the simulators that Zen has actually saves thousands of crores of rupees, and it is very environmentally friendly, in the sense that you don't have to fire actual ammunition, you don't have to take the tanks for the actual exercise, but you get more feedback, more competent skill building happening when you use the simulators. Because of this, we also got a very interesting thing for the investors would be, we got a ESG score of 67.

Last year, I think we were 41, we have suddenly gone to 67. This is a Dow Jones Sustainability Index score.

I think this is a big plus for us, and that will get some investors in the sustainability sector into Zen. Again, this is just the beginning.

The company secretary Saurav had done this job single-handedly. We expect to really, really aim at a very, very high score in this so that people who are into sustainability can actually see a rare intersection between defense companies doing sustainability work.

ESG is one thing that we are very excited about. Again, very briefly, I want to touch upon the budget.

The budget was 7.85 lakh crores, and I think it was a huge budget. The commitment to spend 75% of it on domestic procurement was very good.

Again, our always thing is, will it be a Indian-labeled foreign goods, or will be actually designed, developed, and made-in-India stuff? This is where government can actually play by setting an example that pretenders and fakers will not get the orders, the actual IP developers will get the orders.

That could be one very big thing if it happens. Otherwise, it is strategic dependence with the Indian label will continue, and we'll never get strategic autonomy.

That is one thing that will be missing. Our hope is that money actually flows back to company that design rather than just get somebody else's technology and assemble it in India.

These were the main points that I had in mind. One final thing was that there is a Research, Development and Innovation Fund that the Government of India has floated for 1 lakh crores.

Out of that, they want to spend 20,000 crores every year onto deep tech, and defense is one of the areas that the RDIF fund will be using. This is something some area where companies like Zen will be taking help from the Government of India to actually do long-term.

The fund the government is talking about is actually a 50-year fund, but they will be giving to the Indian companies maybe 10 to 12 years kind of thing. This actually companies that actually do R&D have a long-term scope and are willing to put in their money.

The government is willing to put in 50%, we put in 50%, or we raise it from somewhere and put in 50%. We can really go for very, very important technologies for a 5-year, 7-year, even 10-year development.

Again, how should we approach this is very simple. What are the technologies 5 or 7 years from now we think will be very important in war, and then trying to identify the Pareto within them, and then double down on the Pareto.

That's the approach that Zen will be doing. Very frankly, again, every time I come, I say one thing: I have never been more excited.

I want to repeat that, I have never been more excited. I think India version 2 is going to happen in a rapid way in the coming couple of years.

Thank you so much for your time.