Zen Technologies Ltd

DEAR SHAREHOLDERS,

FY25 has been a landmark year for Zen Technologies. We are not just riding the wave of India's defence indigenisation; we are leading its transformation. With record revenues, a growing portfolio of cutting edge defence technologies, and a deep commitment to innovation, Zen is building the muscle and mindset needed for the wars of tomorrow.

SKIN IN THE GAME

At Zen, our commitment to technology is not just to win tenders; it is to win wars. Years ago, we made a bold bet that very few recognized and even fewer dared to pursue: wideband anti drone systems capable of operating outside commercial frequencies. At that time, defence procurement was focused on drones using commercial spectrum. We knew from conversations inside our labs and study of modern battlefields that adversaries in real wars will not follow telecom regulations. We built for the future, not to check boxes in a tender, but to confront the reality of the battlefield.

That conviction was tested in Operation Sindoor, where our band independent anti drone platform succeeded in neutralizing threats that other systems could not even detect. This is what "skin in the game" means at Zen: investing ahead of demand, choosing difficult paths, and delivering when it matters most.

FY25 saw us cross Rs 93,066.72 Lakhs in revenue, backed by healthy profitability and strong cash reserves. Numbers, while important, only tell part of the story. This was the year we executed our largest ever export order in the counter drone segment and secured strategic domestic contracts like the Integrated Air Defence Combat Simulators (IADCS) for the L70 gun. These wins reflect growing trust in our ability to deliver high quality, mission critical systems with speed, precision and reliability.

Zen made three strategic acquisitions this year, not for scale, but for precision. ARIPL brought us world class capabilities in naval and marine simulation. Vector Technics added indigenous drone propulsion to our arsenal. Bhairav Robotics gave us access to next generation robotics and autonomous ground systems.

Each of these aligns with our core strategy of expanding Zen's footprint across simulation, counter drone, and autonomous systems.

Together, they enable us to offer vertically integrated, mission ready solutions that enhance preparedness, reduce foreign dependency, and ultimately save lives.

As Kautilya wrote in the Arthashastra: "One should march only when the cause is just and the preparation, complete."

Delays with no accountability can quietly kill innovation. While the government has made great strides with initiatives like Buy Indian (IDDM) and Make in India, there is still work to be done in tightening procurement and execution timelines.

We believe the way forward is to introduce performance linked metrics. Much time and cost is saved through timely action. Zen will continue to work constructively with all stakeholders to streamline this ecosystem, because fast decisions win wars.

The Ukraine conflict has made one truth clear: legacy hardware without continuous training is dangerously ineffective. At the same time, conflicts in Nagorno Karabakh, the Red Sea, and Eastern Europe have shown how drones and autonomous systems are rapidly becoming the first strike weapon in modern warfare.

Zen's strategy is tightly aligned with this shift. Our investments in simulation based training, wideband counter drone systems, autonomous surveillance, and tactical robotics are targeted bets on what will define outcomes in future conflicts. We are not trying to do everything. We are going deep into the Pareto technologies, which are vital and carry disproportionate battlefield impact. In modern combat, precision matters more than presence.

We remain financially strong, with R~1,00,000 Lakhs in liquidity, a R69,194.10 Lakhs order book, and no heavy asset drag. Our capital light,

IP heavy model lets us stay nimble

and resilient. We are doubling down on R&D, with plans to expand our Hyderabad centre with a R7,000 Lakhs investment. This will allow us to compress development cycles and respond faster to emerging threats.

We remain deeply conscious of our responsibility, not just to shareholders, but to soldiers. Simulation based training reduces accidents and emissions. Our technologies are built to keep soldiers out of harm's way, while making them more effective if called upon.

Looking ahead, we expect FY26 to be a more measured year in financial terms, driven largely by the timing of order inflows and execution cycles. This is a natural calibration phase in a larger growth trajectory. We are committed to the medium term outlook of achieving cumulative revenue of R~6,00,000 Lakhs across FY26, FY27, and FY28, reflecting our confidence in the strength of our technologies, the maturity of our pipeline, and the accelerating momentum in defence modernisation.

As demand for battlefield ready technologies grows globally, Zen is also scaling its presence across key strategic markets. We see exports becoming a meaningful share of our revenue in the years ahead.

FY25 was not just a milestone; it was proof that Zen is prepared to lead. The road ahead will demand even greater ambition, discipline, and courage. We will continue building India's defence edge, one product, one prototype, and one patent at a time.

To our shareholders, thank you for believing in us. With your support, Zen Technologies is not just part of India's defence ecosystem, we are helping define its future.

The best is yet to come.

Yours sincerely,

Chairman and Managing Director