Good morning everyone. I just want to do a recap on the current products that we have and talk about the future products that we are going to launch.

The main point here is that there is a North Tech event happening in Prayagraj as we speak, and our products are being introduced there, and I'm very excited about what's happened in the product space. The results, I'll leave it to Hari to make the presentation and field the questions with respect to that.

I'll just start the share here, and do you see that?

Really very broadly, that what has happened in the past, few months is that the two areas that we were focused on, which is anti-drone systems and the simulators, both have gained so much of prominence in the in the war, recent wars that have happened. The first thing is anti-drone system, without, without much, argument, in that sense, the Iran Israel-Iran war that was fought was completely drone-based or missile-based, and whoever could, for every rupee, get the maximum mileage won the war actually.

We can see that while they were launching $30,000 Shahed drones, they were being countered by $3 million, interceptor missiles. Complete missile math was completely mixed up.

One take away from that was, that anti-drone systems are playing a big role. In addition to just pure software jamming, hard kill options has have to be there.

In hard kill, the ideal situation is for every $30,000 attack that happens, can you stop it with a lesser amount, maybe $20,000 or even one-third of the price at $10,000? Can you really neutralize the Shahed drones?

That was what the thing was. Coming back to what Zen has been doing, we have been doing anti-drone systems.

We have introduced hard kill options, and we have, and we see that currently, post the Israel, the the focus has almost 2x, minimum 2x from what were we were originally projecting. What is the impact it will have on our turnover and all that is not yet known, but we see that two to three years from now, the mainstay is going to be the anti-drone systems.

Second, what has happened is that again, because of the wars, the sudden nonexistence of wars prior to 220 2020 to now Armenia-Azerbaijan, Ukraine-Russia, Israel-Iran, all these wars have really changed the dynamics very, very well. What has happened in essence is that the companies are now scrambling for preparing for war.

They're They It's not a question of if you will be attacked. If you are perceived weak, you will be attacked, is the general theory.

How do you make yourself really unbeatable is by, making yourself trained properly trained, and then, buying the right kind of equipment. What are the So, and in this direction, we have been started doing lot of efforts.

One of the biggest change that has happened in terms of our development efforts in the last few years versus last few months is that the AI has taken a major role into our development cycle. AI takes two places.

One is at the level of the, process-based. Where are the process?

Are you using software developing software using AI? Second is at the embedded level.

Are your products, are the simulators, are your anti-drone systems themselves AI-native or not? These are the two areas that we have been focusing on.

One thing that happened was that, because of this extraordinary productivity increase, we have suddenly, released a lot of bandwidth in our companies. One of the company that did extremely well is, I both ARI and NAV under Commodore Ahluwalia, and they have started developing really interesting products.

With the bandwidth, we are now able to take more products and holistically address the market that has come. One of the product that they have developed is a cybersecurity suite.

This is a actually a physical suite that is integrated with which can be integrated at control and command center, it can be integrated into ships, it can be integrated into even into aeroplanes, where they, if the attack happens through hacking, this can prevent. There are typically there are six layers, six layers: one is awareness and training layer, monitoring and intelligence, protection and prevention, encryption and data sovereignty, threat perception, investigation and response, and finally the quantum post-quantum readiness, which is required because of the encryption that is required.

This is in all the cases there are zero foreign dependence, this and, it is a proper example of a Aatmanirbhar Bharat. This is something that is happening.

The other thing is that, this with the the second thing that that we have started doing is of course the anti-drone simulator. We have been actually supply supplying the anti-drone system for a long time.

Now, anti-drone simulator has also been developed by ARI, and this is a very advanced training platform because we really cannot block the real actual anti-drone system for training. These actual anti-drone systems do have built-in training methodology, but we have a request by the customer that this is a separate activity, and so we have created a anti-drone simulator.

Again, we think this is a major product, it will teach people to detect, track, and neutralize aerial threats, very realistic virtual environment. It could be a single drone threat or a swarm attack drone, right?

Also, can you have a mission-based tactical exercise? This does enable that.

Of course, scenarios can be configured with adjustable threat levels. This is actually before the war happened, the war can be simulated, and drones can be activated and stopped from attacking the thing.

Again, the current even the anti-drone system that has that is there is complete heavily AI-powered, again, a lot of AI in that. Especially when we compare, our thing is 15+ kilometers detection range.

Of course, if you network, it goes indefinitely. It can be 4,000 or even 40,000 kilometers.

We are talking about each individual system, and frequency dominance is one of the biggest challenges that we have. We are seeing worldwide is that a catch-up game that the other vendors are playing with Zen.

Initially now, recently we have been supplying for, 400 MHz to 6 GHz, but that's outdated. Now, we know that, the bad actors are actually making drones at 100 MHz, they are making at 10 MHz, 10 GHz, they're making at 12 GHz.

The so what we have done is we have pre-emptively made the product with wider frequency dominance, which is 70 MHz to 12 GHz. Again, our neutralization capabilities are extraordinary, RF jamming, GNSS jamming, RCWS guns that we have already included, air defense guns integration has already been done, both L70 and Zu-23.

This product is way ahead of, the what are the available in the market worldwide. Again, completely radar itself is also indigenized, and with the range of 20 kilometers, and detects smaller drones much, much earlier than what competition would do.

The latest launch, this is again being launched today at Prayagraj, and we are very happy with what is being done. This is actually future-proof at this point in time, and we we think that this will have a lot of market in in the not only in India, but worldwide.

Another product that's being launched today is Vrishabh. Now, Vrishabh is a is a unmanned ground vehicle, UGV, that is capable of both capable of combat, logistics, and casualty evacuation.

It has a payload of 150 kilos, it goes at a speed of 50 km/h, the range is up to 100 kilometers. We have already integrated various weapon systems, MMG, LMG, direct fire, AGS, indirect fire, all of them, and tried on this, and they they are they function very, very well.

The recoil is absorbed very well. Your operating mode is, you can, you can you can manually operate it, or you can just on autonomous, give a task give a give a task: go there, do this, and come, kind of situation can be done.

All the autonomy is there. Of course, it has Ackermann steering for better control and reliability.

Indigenous content is more than 85%, and commercially we are planning to launch in this financial year, FY 2027. Of course, these are the other things.

It can be used as combat, logistics, or casualty evacuation. This is a command and control center there that you see, a very, very interactive and state-of-the-art.

Another product that has been launched in collaboration with AI Turing is our associate company is that, this is a this is a unique 30mm ammunition. This is a We have ammunition license.

In addition to the recently granted weapon license, we also ammunition license. We are building this ammunition, which is, RF-based programming, it has pre-fragmentation and tungsten ball as a core, and we have seen that we have actually tried it out and it it destroys everything within the in a 10x10 meter area, and this can also be used as a anti-drone firing thing with on our 30mm cannon.

This is this is And again, when you use this this ammunition, you don't have to modify the actual weapon. You can use the regular weapon system and put this ammunition into that.

Again, and finally, and one more thing that is happening is the CIWS. This is a gun-missile system, again by AI developed in collaboration with AI Systems.

They are they are this can be used by naval forces. In addition to the weapon system, it also has the shorter missile range and a built-in radar.

Some of the smaller targets where, people don't want to spend the RF detection and the jamming, but want to just to have a hard kill option, this built-in radar is a is a it's a self-contained solution which will actually at if at a much lower price point, can be pushed to the armed forces. Again, I as I was saying, one of the biggest thing that I'm really excited about is, it can be actually make a drone anti- interceptor drone that is, costing much cheaper than the $30,000, the Shahed drone that costs, and can it effectively The biggest challenge is, these drones come at 180 kilometer.

This Shahed drone does 180, and now the recent ones we hear are doing 300, and the next ones probably would be crossing even that. Given these speeds of, that it is very, very difficult to actually realize a drone that can fly at speed of 300 kilometers.

How do you exactly address this challenge of, stopping a $30,000 drone with much, much cheaper attack Shahed drone with much, much cheaper solution? I'm very, very happy and very, very proud to announce that we have just come up with with a solution that is actually much, much cheaper than Shahed drone.

We think at $10,000 is a very, very good entry point for this, and we are launching Hyperstrike, which is having a speed of 400 km/h. It's a 5-minute loiter and strike thing, so it has it can go easily 20 kilometers plus and hit the target.

Even if it misses, it can be maneuvered physically. One thing is, it has the AI built-in, but at the same time, a manual override is there which it can which can be chased and it can hit the target.

It again, the proximity variant payload is about 200 grams, AI-enabled tracking and guidance, and 4 kg airframe, and mass production after it. Very, very So, so, we think that we should be doing about, the the production will start in this financial year of this, and we expect that, even the capacity is about 5,000 per shift per month, but we think we can easily increase to 15,000 and, we can scale it up if the demand goes up.

This is a very, very excitement thing, and there's a small video that a teaser video that I'll just share with you. This was the last slide, and with this, of course, as usual, again, the key contribution for this, the high-speed propulsion system has been supplied by Vector Technics, an extremely competent team again.

We actually from the focus on Zen creating great products, which continues to happen, now we are almost in a position of facilitator, having great set of companies working together, and facilitating them to, unleash their creativity to serve the needs of, our clients, the Indian armed forces and allied Indian allies. That is what we have been able to do very and very, very excited for the next three to four years.

We think the government is moving very positively. The new DAP that is the draft DAP that we saw was very gratifying.

The whole focus in the DAP has been IDDM. They have been saying indigenously designed, developed, and manufactured.

There was some attempt to say that, if even foreign tech, if it is bought, should be used on par with Indian IP developed. The wiser voices prevailed, and I hope that will not be allowed, because when you develop a product after four or five years of hard work, that's a capability development.

It is not a product. If you just get somebody after, from as a ToT you say, and you try to equate it with IDDM, that is dangerous, because, what will happen is simply if a company is actually developed a capability and is on verge of commercialization, a foreign counterpart can what he'll say, "Listen, I want to kill this technology.

Take this technology from me, and kill that Indian capability, so that, next version onwards, Indian armed forces will be forced to come to us." We have to distinguish between foreign designed, developed, and Indian assembled or Indian manufactured, even if the IP the company is, has given the IP, so-called IP transfer has happened, versus indigenously designed, indigenously developed, and indigenously manufactured.

Indian manufactured. I think that we were smart enough to see the folly in that distinction, and we I think government will be doing.

I think after 2026, the roost will be ruled by companies that have designed and developed products, and I think they may be giving preference We are hoping that for indigenous private companies, there are companies that have developed the product along with DRDO. What is the difference is DRDO actually finances the development.

Now, compare that with a company that is actually self-funding the innovation and R&D. We are saying that privately self-funded, independent R&D companies, innovation and R&D companies should be actually be treated much, much better than people who are just taking codeveloping with DRDO and that we call it.

If that happened, that should happen, and but anyway, we can distinctly see companies that are putting in their money that is ultimate skin in the game, and they are saying that, "Listen, we want to develop this product. We don't want any funding, but if we click, you buy."

The only thing for those companies is quicker orders. If that is cracked by the Indian government, which we think is the main point in 2026, that they are going to, really push the IDDM agenda.

I think that will change. 2026 will be a hallmark year not for the actual innovators in defense industry, but also for the Indian armed forces, which will unleash the power of Indian armed forces Indian industry not only into India, but all worldwide.

With that, I thank you so much, and I would hand it over to Mr. Hariharan for the presentation on the financial results.

Thank you, sir. Good morning and warm welcome to all.

Thank you for joining us on our Q4 FY 2026 earnings call. Following Mr.

Ashok's remarks on the business and the way forward, I will take you through our financial performance for the quarter and for the year ended 31st March 2026. Let me begin with the consolidated performance for the quarter.

Consolidated revenues for Q4 FY 2026 stood at ₹178.1 crore, broadly in line with the ₹177.8 crore reported in Q3 FY 2026 and lower by 45.2% year-on-year compared to the ₹325 crore in Q4 FY 2025. As we have indicated through the year, the revenue trajectory in FY 2026 has been impacted by the timing of order inflows with the bulk of the orders received over the past several months scheduled for execution from FY 2027 onwards.

Operational EBITDA for the quarter stood at ₹51 crore, which translates to an operational EBITDA margin of 28.6%, lower by approximately 900 basis points sequentially and 1,390 basis points year-on-year. Profit after tax for the quarter stood at ₹47.2 crore.

PAT as a percentage of revenues stood at 26.5%. I would like to spend a moment on the five specific factors that have weighed on the margins profile for this quarter since the quarter-on-quarter and year-on-year movements are wider than the underlying business run rate would suggest.

First, our Q4 revenue base is lower against the prior-year comparable with Q4 FY 2025 having strong execution resulting in a higher base. Since a significant portion of our cost base, both at the standalone level and across the group, is fixed in nature, this lower revenue base translates into margin compression, particularly on the year-on-year comparison.

Second, we recognized year-end performance incentives for certain employees during the quarter. This has resulted in an incremental employee cost of approximately ₹5 crore sequentially.

Third, we have updated our warranty provisioning percentages, particularly for anti-drone system products supplied in FY 2025, based on the actual expense data. With more actual data now available on warranty utilization for these products, we have revised the provisioning estimates upward, resulting in an approximately ₹3.1 crore of incremental warranty expense in the quarter.

Fourth, we incurred approximately ₹2.7 crore of post-supply expenses during the quarter pertaining to an export order delivered in FY 2026. These costs included on-ground installation, support, logistics, and engagement of external consultants in the customer's geography.

Fifth, R&D expenses for the quarter were higher by approximately ₹3.3 crore sequentially. These reflect investments into our future product portfolio, and as we have indicated in earlier interactions, we expect to make higher investments in R&D going forward, which will be reflected in an elevated cost base.

Unlike the other four factors mentioned earlier, which are largely one-time or period-specific in nature, this is a structural commitment that we will continue. While these factors have weighed in on the quarterly margins, our long-term guidance of 35% operational EBITDA and 25% PAT margins remain intact.

Now, coming to the consolidated performance for the full year. Consolidated revenues for FY 2026 stood at ₹687.7 crore, lower by 29.4% as against ₹973.6 crore in FY 2025.

Operational EBITDA for the year stood at ₹247.2 crore at a margin of 35.95%, lower by approximately 240 basis points year-on-year. Profit after tax for the year stood at ₹217.9 crore.

PAT as a percentage of revenues stood at 31.7%. Now, coming to the order book.

The consolidated order book stood at ₹1,336 crore as on 31st March 2026. The standalone order book as at 31st March 2026 stood at ₹1,222.6 crore.

Majority of this order book is scheduled for execution from FY 2027 onwards and provides clear revenue visibility for the next financial year. Working capital days as at 31st March 2026 is 196 days compared to 194 days as at end of Q3 FY 2026.

I would like to draw your attention to a notable improvement in our DSO position. Our days sales outstanding at the end of FY 2026 stood at approximately 119 days compared to 161 days at 31st December 2025, an improvement of 42 days.

The increase in working capital days is primarily due to higher inventory days and advances to suppliers, which is required for the projects which are currently being executed for deliveries in FY 2027. The liquidity position of the group continues to remain strong.

Cash and bank balances aggregated to ₹1,308 crore as at 31st March 2026. The group remains debt-free.

This is the brief on our financial performance for the quarter and the year. We can now take questions.

Thank you.

Hello sir. Thank you so much for the opportunity, and elaborate walkthrough of the products.

My first question is how much of the ₹1,336 crore order book which we have will convert into FY 2027 revenue, and by when will it happen in FY 2027?

Thank you for your question, Mr. Mehul.

Most of the order book that we have of ₹1,336, out of that the product which will be dispatched in FY 2027 is around ₹1,000 crore. The balance ₹326 crore is basically AMC revenue, and AMC revenue gets spread over a period of the AMC contract.

Out of the total order book, ₹1,000 crore is expected to be executed, and most of the execution is going to happen in Q2 and Q3 of FY 2027.

Okay. Most likely we'll recognize the entire order book into revenue.

Yes.

Okay. My second question, sir, is what is the sustainability of new orders in FY 2027 across the new and legacy product portfolio?

I think the orders will be accelerated now. We expect both the segment, the simulation segment and the anti-drone segment to really increase in the size of the orders.

As I said that the demand which we were expecting has far exceeded the estimate. The reality is much, much, much larger than what we are expecting.

The sustainability of the order is not only, not only sustainable, there's going to be a significant increase in the orders that will be received during this year, financial year 2027.

Sir, can you give some kind of a ballpark how much increase will be compared to FY 2026?

We stick to that prediction of, our projection of ₹4,000 crore turnover in FY 2027 and 2028 put together. We are very comfortable with those figures now.

Sir. Okay.

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

Thank you, Mehul.

Good morning, sir. Thank you so much for taking my question, sir.

Sir, just with in regards to the previous participant question only, we are sticking to the ₹4,000 crore revenue guidance. By mathematically, that means in FY 2028, we'll be roughly doing around ₹3,000 crore, and for that, we would need at least ₹3,000 crore, say ₹4,000 crore maybe order book by this year.

Is that fair to So, that's what we are targeting this year? Because very honestly, sir, we've been trying to, I think in previous call also you guided that maybe we'll do ₹1,500-₹2,000 crore orders in hand.

We are near by that, but it's still to reach ₹3,000 crore is still a quite far number. How confident are we that we'll get ₹3,000 crore order in this year?

What we are saying is, cumulatively we will be doing ₹4,000 crore, for to if you are right in the sense, will we be by the year-end will we be having a ₹3,000 crore order book to achieve it to even if we were to do ₹2,500 in FY 2028? I think that should be the case if our, based on what we have been talking to you.

Again, what I would like you say is in terms of execution, we should be able to execute ₹4,000 crore cumulative over the both the years. Will the order book stand at ₹3,000 crore at any point in time?

I think it is reasonable to expect that yes, it should the order book should touch ₹3,000 crore at some point in time. Oh,

okay. Fair enough, sir.

Sir, just wanted to know, I think we are also going to We got recently I missed the start of the call, I joined in a bit late. We got, I think, a new segment in ammunition and everything.

Are these are the guidance they are including these, or that's a complete new segment where, revenues can touch even higher, sir?

Part of the sales might include part of the sales of the, arms licenses that we are expecting. It will not be very significant to, really contribute meaningfully to these figures still the in the first two years.

I think third year onwards, they'll start contributing very significantly. Oh,

okay. Fair enough.

Sir, just last question from my end. Right now, because a lot of geopolitical anti-drone systems are required in a lot of forefront.

Is how is our technology catching up with people? If I would compare ourselves to all over the world, how would you rate us?

Maybe top 10, top 15? Because why I'm asking that, because the technology is advancing so much.

What are the possibilities of export orders? Because domestic, as we know, government is not in our hands, right?

It's going to take some time, there is going to be multiple rounds, maybe it gets delayed even further. Exports is something we could, you know Because there is a lot of requirement due to the multiple wars.

How are our products placed, and what can we expect out of exports in the coming years?

I think we have figure, factored exports also in this, and we personally think that the simulator market is showing a lot of hope, especially with related to drone-related anti-drone-related simulation. Of course, the naval simulation is big thanks to Hormuz Strait.

Everybody wants to know how to navigate difficult places, how to handle mines, all these things. You really can't practice unless you are on a simulator: how do you handle mines, how do you clean mines, clear mines, etc.

The simulator market is really becoming, and as I said, everyone If you are perceived as weak, you are the next target. How do you look strong is by having a very, very well-trained force.

The simulator is big, yeah. This is what we're getting based on the inquiries, incoming inquiries also.

Of course, in anti-drone system, I really don't want to tell much about it because this was a system that was used effectively in Operation Sindoor, and we think that it's a proven product. What we have today is much, much more advanced than what we gave to the armed forces then.

It's a highly evolved system, and I think it's definitely in the top three in the world if not, the absolute top. When we go to the exhibitions and we consult other vendors and we talk to the customers, they're actually quite surprised that, India actually has the ability to, detect and jam from 70 MHz all the way up to 12 GHz.

That's a huge range for any product. Yes, I think export market is going to play a major role, and we are expecting a lot of export orders, yeah.

Where

by when will we get some order? Our execution is mostly going to be in Q3, Q4.

Can we have order flows before that, or do we expect orders to also be back-ended, sir?

No, I think we Yeah.

What's the pipeline looking like, sir? Yeah.

The pipeline would be very large, but I don't want to touch that. I think as I we had told last year also that, we are expecting some orders in the first quarter, though our orders are very near.

I think when they come, our your confidence, and our confidence will go up about the targets that we have been talking about. Yes, the pipeline for both the simulators and the anti-drone system is very, very large.

It's running into few thousands of crores.

Oh, okay. Fair, fair.

That's it from my side. I'll join back in the queue.

Thank you so much.

Thanks, Darshil.

Hi. Good morning, everyone, and thanks for the opportunity, sir.

Congratulations for a good order inflow and pipeline that we have. A couple of questions, sir, one from a more conceptual perspective.

Now, while we all talk about IDDM and the focus of government on indigenization, but if you look at the current AoNs, they have been at a record level this year, but the foreign component foreign procurement component, and I'm not counting Rafale here, Rafale is a different thing altogether, has gone up quite high, and it seems the view among armed forces, at least as per our channel checks, is that they would like to go for instant patch-up rather than waiting for indigenized kind of systems that might take their time. In that context, order inflow or orders in the near term, there is just a risk that they might be more, towards for the foreign guys.

What is your thought on that?

Where I don't know if you have seen Godfather. In The Godfather, Don Vito Corleone tells Michael Corleone that whoever comes with this Barzini proposal is the traitor.

Whoever comes with the Barzini proposal, and he says whoever brings that proposal, you have to will know that he's the traitor. Similarly, I think in Indian armed forces, whenever anybody is actually pitching a solution that's especially available in India and likely to be available in India, they're actually traitors.

We need to be very, very careful, and we are the and by the way, the whole political system, the whole bureaucratic system, and the majority of the political, majority of the bureaucratic, majority of the armed forces are completely aligned with getting indigenous. One of the questions they say the pitch they make is, "Listen, you we have to have the best equipment in the world to win a war."

Remember, this is the exact situation that we this is the Today, 20 years back, we were in that exact situation that we would always say that we will buy it from outside, we'll not develop it in-house, and we were completely unprepared for wars. Now, the situation is and the country that said, "Listen, I'm not going to buy anything from foreign countries, even if a product is 60% of the world's best product, I will go with the my country's product."

Which was that country? That was Israel.

They have all been on record. Where is Israel compared to India today, which have been following the policy of only indigenous equipment?

That I think that sense is there within the government that we need to buy as much Indian as possible. Again, we don't have a Rafale, we don't have, Predator, which I even though I have my own reservations whether they are the right kind of expenditure at this point in time, but we don't have them.

Going for them with the foreign vendors is all right. There are a lot of things.

Again, to your question about the allocation of funds, because the very large ticket items those have happened, but in the ground, I can actually see they are actually saying that we have to buy Indian IDDM, and they are willing to take risks where they say, "Okay, if the Let us give orders to If there are 10 vendors, then say, 'Okay, three vendors, take these orders.'" So, they're actually I think there will be a consolidation phase happening in the next three to five years, where some companies will really be emerge as winners, the Googles or the Amazons of the defense world that will benefit from focus on indigenous R&D, yeah.

I don't know whether I answered your question, Amit, but if I haven't, please highlight it.

No, sir, absolutely. Thanks for invoking Godfather.

I remember after quite some time, yeah. The second question is essentially on the products that you showed in the beginning of the presentation.

Drone quite, I would say, impressive. Given the use case is very, very huge in the Indian market, and the specifications that you highlighted, I think they are ahead of your peers, at least what I have studied.

What kind of I'm not talking about one year, two year, I'm talking about the use case in particular, that let us say five years, what kind of opportunity do we see in India? Part B of the question is on naval simulation that you highlighted in the presentation.

What kind of solutions we are developing over there? These are This is A and B, you can handle this.

Very frankly, if that with the thing that we are doing, the point here is that, while we are developing, there's somebody who's developing a better, Shahed or something like that. We have a version that will address the future things also as we in the works, in addition to this 400-kilometer interceptor drone that we have created.

Now, this interceptor drone has AI vision compute power on the drone. It can go autonomously, go after It is, Shahed drones most of Shahed drones are 180 kilometers.

This could, even if it misses, go back, tap, blast it out of existence, the interceptor drone. We think that, if things look as they are, the world is a very, very dynamic place, Amit, but if the things look as this may be the largest product in our portfolio two years from now, the biggest product in our portfolio, the interceptor drone, okay?

As we are evolving future versions of that, this could not only with the Indian armed forces, but worldwide, this may be the most sought-after product. Again, the kind of research that is going on is on the absolute edge of physics and reality.

If we are able to crack it, this will be absolute there will nobody in the world who will be able to achieve what we have achieved. I think it's a very, very big.

Good you caught it on to it, but the interceptor drone with 400 km speed with AI compute edge, and a complete autonomous is going to be very big thing for us. Yeah.

Your question was second, naval simulation how, So, naval simulation is really big for us, and, we are thinking that the government is, the Indian government is really, really focused on, now a lot of people just focus on the two borders, the Chinese border and the Pakistani border. When you just reverse, just have a map in front of you and move it around, just about As you move it upside down, you will see the sea is such a huge part of India, and where we have built everything.

This is where the actual threats are now being built. What are we going to do about it?

I think the training for that is going to be very, very major, and thanks to the, the choke points that we are seeing, India will have a larger role to play as we go ahead. We see in the naval simulation also we have started putting in effort and started offering complete full-fledged combat naval combat training centers, and there is a lot of positive response in this regard not only in India, but, ARI, our sub 100% subsidiary, has a lot of connections in South America and, Europe.

We are trying to push those solutions through them. I think and, I think this is going to be quite a large contributor of revenues as we go ahead.

No, sir, thanks indeed. I think I will connect with you one-on-one, because this is outside the domain of this call, but in the interest of time.

I will connect with you one-on-one on these exciting products. Thank you, and all the best.

Sure, Amit. Thank you so much.

Just for the knowledge of everyone, these products are being demonstrated at Prayagraj, they are on display, you can have go and have a look there, yeah. Yes.

Hi, sir. Good morning, and thank you for this opportunity.

Sir, my first question is regarding your arms license that you have received. Can you tell us the scope for Zen Technologies in this arms manufacturing as to whether we are getting into the ammunition production or whether it is more about the product that you recently just on display right now, as to what kind of new products we are expecting from this arms and basically from this arms manufacturing license?

Yeah. The thing is that, again, we have been focused on the anti-drone segment by itself.

What is happening is we built the remote controlled weapon station as an expansion of our hard kill option offering to the customers. What we saw was that the product by themselves are having a lot of market.

The remote control weapon station, they say, "We don't want your anti-drone full unit system, we want this thing, maybe integrated with a radar kind of thing." Those are the kind of solutions that some of the, especially the vendors with limited budgets are asking for.

An interesting thing was that, the when we saw in the which we anticipated much earlier was that the these the 12.7, 20mm, 30mm especially, these will be the weapon system that will be used to bring down the drones. We had applied two years back the licenses, which fortunately came in now, and in the meantime, we have been developing doing some hard work some hardware work also on creating this weapon systems.

Yes, the weapon systems will be launched during the, one, something will be launched during this year, next year I think the majority of them will be launched. These are very big market.

Again, you as you have probably guessed it, the bigger market in this is the actual ammunition. We the ammunition that we have developed for 30mm, that is the most preferred caliber weapon for to bring down the drones, the 30mm is actually a smart, ammunition with airburst capability.

When it detects something some drones decided, it does the blast in 10 a 10x10 meters worth of, if drones anywhere in that radius will be completely destroyed. I think yes, ammunition is also a very big market, but we are going after smart ammunition, not the dumb ammunition where, they where they're again, we are addicted to margins, we have to have reasonable margins to do this kind of thing.

Yes, I think both arms and the ammunition will be a big market for us, and we look forward to making a dent in that market.

Got it, sir. Thank you so much for that clarification.

Sir, second question is on the line of the order inflow, the kind of order inflow. Basically you told us about that ₹4,000 crore of turnover cumulative in FY 2027-2028.

One thing I want to understand is that what is your conversion rate in terms of from order win to execution, because if it is something like one year, then potentially all this ₹3,000 crore of order wins has to be won in FY 2027. That is one thing that I want to understand, and also what was the bottleneck which led to the delay in the terms of ordering, because, as you mentioned rightly, ADS and simulation are right now something which are widely required, and the requirement is only increasing going ahead.

Any indication as to what led to the bottleneck into slow ordering activity from the government side as well?

You asked two questions. One is, when are we going to get the orders?

Will it be during the year so that we get a comfort that, there'll be some significant part of the ₹4,000 crore executed during the current year? I think yes, that is the answer is a short answer is we expect the orders to come in, we, in fact, this first quarter should be a good quarter, but not later than second quarter.

I think for we you should hear some good news in the first quarter, which will give you comfort about the current year. Then yes, as we go towards the end of the year, you will get the visibility for the second year also.

Again, I I'm I'm a big-picture person and I try to look at the very large, especially for long-term. You we these these are we keep they are keep we are keep we are keep adding the the arms, the ammunition, the interceptor drones, the cyber cybersecurity Suraksha that we are calling.

All these things are coming in. I think they're going to be big.

To to your question what was the bottleneck that caused the orders not to come in at this point? Again, we I have touched upon this earlier, which is the the simulator orders that were supposed to come, they got delayed because because of the the operation, that has happened, the Operation Sindoor, government went slow on the regular procurement and really accelerated and did emergency procurement of the anti-drone systems and all that, placed order.

Those orders did come to us, that kind of helped us build up our order book position, but the things that we were prepared for, the actual simulators and all that, they got a little bumped, little delayed because of that. We again, we're those are the orders we think that we should be getting very soon.

Got, sir. Got it.

Thank you so much for answering my questions, and all the

Thank you, Dipen.

Thanks.

Thank you for the opportunity. Sir, just wanted to understand as we are translating into form a software-only to now mix of a hardware as well, where usually the margin profile has slightly lower.

How should we look at our FY 2027-2028 margins going forward as more and more hardware-related product which gets added on?

Vikas, we are primarily, there is on in all our products, in all our simulators, hardware is a major part of it. Only thing is that we used to outsource our hardware.

We used to design, develop, and prototype it, and then for the actual manufacturing, for the noncritical items, we have always outsourced it. We have never developed it, because, we would finally assemble it at our location, quality tested, and dispatched to the customer.

Hardware has been essential part of the all our products. Simulator, for example, a tank simulator, the whole of the tank has to be replicated up to millimeter accuracy.

There

is a lot of hardware work. We continue to have hardware, we have hardware, and software is also there.

Of course, now developing the software has become much easier. I think the margins will continue as long as we are actually providing a lot of value to the customer.

In the sense when I say value, they definitely want to be the they want need for number one, they need the product, and number one, they want to be the cheapest in the world. Typically for our product, we are mostly competition from foreign companies.

We ensure that, we are the best priced value for money deal for them. If that at this point in time, I don't see any threat to our margin prediction of 25% PAT and 35% EBITDA margins.

I think we are very comfortable with the 35% target, and I think for this next couple of years, that margin profile should continue.

Noted, sir. Sir, also give us some for, insight into a working capital.

Since now you are going into an ammunition department as well, where we see that the, working capital runs into over a year or so, how should we look at our capital requirement and the fundings?

The ammunition and the arms, they're a little away for us. I think the next year will be the earliest year where we'll have to start worrying the working capital on that.

Overall working capital, I'll let Hari answer that question on, how are we managing the working capital, and if there is future increased needs for working capital, how do we plan to address it? Hari will address that, yeah.

Yeah. Currently our working capital days are 196 days.

Even with the manufacturing license, Ashok sir had mentioned, the plan is that we will stick to our existing manufacturing model wherein we outsource most of the production and then be an assembler. Only the critical components that we need for these arms will be manufactured in-house.

In the long term, we still expect our working capital cycle to be around what we've guided of 140 to 150 days. If there are major orders to be executed it is the case right now where we are seeing inventory buildup for the executions which happen in the next 12 months, the working capital days will slightly increase it is the case right now, but otherwise, it should be comfortably around 140 to 150 days.

Noted, sir. That's all from my side, and all the very best for the future.

Hi. Thanks for the opportunity.

Sir, if you can just talk about performance at subsidiaries level, and also the guidance?

Subsidiaries currently, as you see, the overall consolidated revenue is ₹688 crore, the standalone is ₹423. The subsidiaries have contributed ₹260 crore in the current year.

Majority of that revenue is coming from two of our subsidiaries, which is UTS and ARI. ARI, as you would be aware, we acquired in FY end of FY 2025.

The full-year consolidation happened in this year. ARI has contributed around ₹131 crore to the top line, and the net PAT margin of ARI is around 30.3%.

UTS has contributed the remaining, and other subsidiaries have contributed around ₹10 crore. UTS margins are PAT margins are around 26.5% for the full year.

From a guidance point of view, we think in FY 2027, UTS and ARI together, they would be doing around ₹365 crore of revenue.

Sir, on margin front?

Margins will remain the same region, Mohit, the current margins which I've mentioned, ARI and UTS. UTS will be at around 26 27% to 30%, and UTS will be similarly close to 30, 31%.

Oh,

sure, sir. Thank you.

That's it from my side.

Hi, yes. Thank you for the opportunity.

My first question is regarding the order book of subsidiaries. Can you please tell us what was the opening and closing order book of both ARI and UTS for FY 2026?

As at 31st March 2026, ARI had around ₹70 crore in order book, and UTS had around ₹50 crore in ₹35 crore in order book. That's the closing order book for the year.

What was the opening order book for the same?

Opening order book for both UTS and ARI together, UTS was ₹110, and ARI was around ₹90 crore.

Got it. What kind of order inflow visibility do we have for these two entities for let's say next two years?

Prerit, like I mentioned in the earlier conversation, we expect both of them together to do around ₹365 crore of revenue in next 12 months. That's the that's the target.

Beyond that, I think we've we've guided that ARI would in FY 2028, we're expecting ARI to do around ₹300 crore, and UTS would be anywhere between ₹150 to ₹200 crore.

Okay. Got it.

That's all from my side. Thank you.

Thank you.

Hi. Good morning, and thanks for the opportunity, and good order inflows in Q4.

I just wanted to check with you, sir. Where are we in terms of stage for the hard kill anti-drone system clearance?

Has the user trials been done, and are we expecting orders for the hard kill as well? Secondary, there was the post Operation Sindoor, we were expecting the additional orders to come for our anti-drone system.

Have we got it in FY 2026, or are we expecting things to come in FY 2027? Yeah.

To your

Hi, Harshit. The hard kill orders we already received, we have started receiving them.

We have got about ₹40 crore worth. Earlier also we have supplied with the hard kill of Zu, the L70 we have supplied, and now recently also two more orders have been received.

Yes, hard kill orders we are started getting in. With respect to, after the Operation Sindoor, yeah, because of that, the orders were accelerated, because then we got some feedback that, these are the things that need to be improved, and based on the actual inputs that we got, and we got orders to both repeat orders as well as orders to, upgrade the existing systems.

These were the orders which were received very, very fast, and the work is being done as we speak on those orders that we have received, due to the lessons from Operation Sindoor.

Sir, at the start of the call, you mentioned that you have already bidded out for some few thousand crores of order inflow. Can you quantify a number here?

Is this all on nomination or all competitive? How much of is a win rate that we can expect if you can give some clarity in terms of the order pipeline, giving more confidence to investors on where are we in terms of, let's say a ₹3,000 crore, ₹4,000 crore is where we are in terms of bidding pipeline?

That would be of great help.

In terms of bidding, we are at I would say probably in the region of about ₹1,500 crore or so. The other, there may be, or single vendor tenders and all that, when we add that up, that could be another couple of thousand crores.

Yeah. All together, it's much, much larger where, there may be a regular tender may be floated, which may take a longer time, something like 18 months, but overall the pipeline is running into few thousands of crores.

How much of the split will be between counter-drone system and simulator within the pipeline, sir?

We think, when we look at the split at this point in time, it does look favorable to anti-drone systems. It is probably 55-45 kind of thing.

Okay.

Lastly, sir, on the ammunition part. Will you develop a product, it will go for testing, and then you will start supplying?

Is that how the process would be, and it will take how long according to you for this 30mm ammunition that you plan to do?

Next year we should have started manufacturing and supplying it.

Okay. It don't require a lot of certifications or those kind of approvals for this particular So,

we are, as we speak the certifi- the it has the testing is going on. The certifying agency is also pipe in the loop about it.

I think by next financial year, definitely we should be started manufacturing it, yeah. you are right, that nightma- somebody did say that, it is much more complex than you can imagine, but we think that two-year period should be sufficient for us to get everything in order.

Lastly, any acquisition that you plan to do on the simulator side maybe to complete their portfolio of simulator, is there an on thing on cards for this financial year?

Harshit, we have identified, just a background is that, we have been anti-diversification for almost 25 years of our life. We were doing nothing, but we're just doing army simulators.

Then we got into this field because there was a nobody everybody was talking about drones, but nobody sensed the danger that drones represent. We had a four to five-year lead over competing companies, and when we started doing R&D.

Yes, I think we have the thing. Somewhere in the last couple of years, we have started thinking that we should focus on Pareto technologies.

Technologies three or four years from now will become very important, and that will be and those will determine, Pareto is basically 20% of the technology that determines 80% of the war. For example, in the Israel-Iran war, we know that the Shahed was the winner, absolutely, that was And as you know that this is recursive, the Pareto is recursive.

The 20% of 20% of 20% is 0.8% can determine the result of, 80 of 80 of 80, which is a 51.2%. This actually happens.

We are trying to look at what are those key technologies which we can actually have a head start and try to get into. In addition to not only simulator, but we are looking at those companies.

Again, we can supply the capital, but we don't have the bandwidth or the technical intelligence to do the thing. One thing we do we because we are so familiar with the whole ecosystem, we can guide them in the right way by putting in the resources.

Typically what we have seen in the smaller companies is they are dispersed over too many opportunities, and their existing guys are killing them saying, "What is what's going to be the next quarter turnover?" Zen comes in there and he says, "Listen, let us stop all the, 15 projects you're doing.

The 16th one looks interesting. Let us put in all our resources and create a world-class technology there."

That is where we're trying to, we are looking at. To your question to a long question, short answer is that, yeah, we are looking at acquisitions, we are looking in both simulation, anti-drone systems, but some Pareto technologies for the future if we find is very important, we'll acquire be acquiring those companies too.

Sir. Wishing you all the best, sir.

Thank you.

Thank you, Harshit.

Thank you.

Thank you. Thank you, Swapnil.

Again, one of the favorite songs of yesteryears was "Aye Mere Watan Ke Logo, Tum Khoob Karo Qurbani" by Lata Mangeshkar. That's actually not my favorite song.

I don't like that song in a way. Why should my soldiers give qurbani?

Why should my soldiers die? Whenever even a single soldier dies, a part of us dies, part of me dies.

I think all of us feel that. Why should we let our soldiers die?

I don't like the song in the sense qurbani if somebody has to give, let the opposite sides give the qurbani. Why should we become the qurbani?

I don't like that, even once if our soldier dies. How do we enable a complete defense system where there is less of human life, how do we automate it, how do we create more robots, how do you automate the thing is what I'm saying.

Some if Shahed comes to our border, we our resp- responsibility and promise to Shahed is that we'll make it shaheed. I think that is with that is the kind of confidence, whether it's a soldier or a drone, which should not enter our system, and with minimum damage at our side.

With that objective in mind, with that target in mind, I would like to thank you so much for staying with Zen as investors. I think the long-term story is very, very strong and very, very intact.

I look forward to more interactions with you. Again, through the key investors, please come and see what is happening in Hyderabad, interact coordinate with our CFO Hari, and have a look at what's happening the cutting edge of reality.

Thank you so much.