Laser combat training: This defence stock surges 5% on patent approval

Shares of defence firm Zen Technologies gained nearly 5% on Monday after the company said it has received a patent for laser-based military training systems. Zen Technologies stock climbed 4.45% to Rs 2008.80 against the previous close of Rs 1923.15 on BSE. Market cap of the firm rose to Rs 17,873 crore. The multibagger stock has gained 374% in two years and risen 3859% in five years.

The stock fell to a 52 week low of Rs 946.65 on June 5, 2024 and touched a 52 week high of Rs 2627.95 on December 24, 2024. In terms of technicals, the relative strength index (RSI) of Zen Technologies stands at 51, signaling it's neither oversold nor overbought on charts. Zen Technologies stock has a one-year beta of 1.13, indicating high volatility during the period. Zen Technologies shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

In an exchange filing, the company said that it has been granted the 54th Indian patent, titled “Single ILU Long Pass Filter”, in the military training systems.

The Hyderabad-based defence firm said this patent was the company’s 82nd patent globally.

According to the company, the newly patented long-pass optical filter enables the integration of visible and infrared laser beams into a single, stable output. This innovation raises the accuracy, realism, and responsiveness of combat training simulators.

In another announcement, the company said that Ravi Kumar Midathala, Whole Time Director of the company, retired on June 28, 2025, upon completion of his tenure in the company.

Midathala ceased to be a Whole Time Director and Key Managerial Personnel of the Company w.e.f. June 29, 2025.

In Q4, Zen Technologies reported a 189% rise in consolidated net profit to Rs 101 crore from Rs 34.94 crore in the previous year. Revenue from operations rose 129.8% to Rs 324.97 crore compared to Rs 141.39 crore a year earlier.

Earnings before interest, tax, depreciation, and amortization (EBITDA) climbed to Rs 162.74 crore in Q4 against Rs 53.08 crore last year, leading to EBITDA margins of 50.08%, compared to 37.54% in the prior year.

The board of the firm also recommended a final dividend of 200% for the financial year ending March 31, 2025, translating to Rs 2 per equity share of Rs 1 each.

Zen Technologies Limited designs, develops, and manufactures defence training systems, based on sensors and simulators technology. The company’s category of products includes land-based military training simulators, driving simulators, live range equipment and anti-drone systems. The company also has a training platform in Hyderabad, with an integration of its complete product range. Its Anti-Drone System (ZADS) system works on drone detection, classification and tracking on passive surveillance, camera sensors and neutralization of threat by jamming drone communication.