Zen Technologies' drone arm eyes ₹400 crore revenue as production ramps up | Latest News Updates

Vector Technics, a subsidiary of Zen Technologies and India’s largest fully integrated drone propulsion manufacturer, expects its expanded manufacturing capacity to generate revenue of up to ₹400 crore as demand for drone propulsion systems rises, according to Co-founder and CEO Prudhvi Raj Pakalapati. The company has increased its annual production capacity to three lakh drone propulsion units and plans to cater to growing domestic demand while expanding its presence in export markets.

Pakalapati said the company is equipped to scale production further if demand continues to rise. He expects domestic orders to remain the primary growth driver, while exports could contribute around ₹100 crore in revenue over time.

Pakalapati said the company’s focus over the past six months has been on automating its manufacturing operations after earlier capacity constraints prevented it from meeting customer demand.

He added that Zen Technologies‘ investment has enabled Vector Technics to expand capacity, automate production and strengthen its engineering team.

Vector Technics now has the capacity to manufacture three lakh propulsion units annually, with further expansion under consideration.

According to Pakalapati, the factory has been designed to support significantly higher production as the domestic drone ecosystem expands.

The company reported revenue of around ₹10 crore in FY26, compared with negligible commercial revenue before Zen Technologies acquired a 51% stake.

Pakalapati said monthly revenue has now reached ₹3-5 crore, translating into an annualised run rate of about ₹50 crore.

He also disclosed that the company currently has an order book of ₹40 crore for the current financial year, which it expects to execute through supplies to drone manufacturers.

Rather than bidding directly for government tenders, Vector Technics supplies propulsion systems to drone manufacturers that participate in defence and government contracts.

Its customers include companies such as Tata and ideaForge, with propulsion systems accounting for 30-40% of a drone’s bill of materials, according to Pakalapati.

While the company remains focused on the domestic market, it has begun pursuing export opportunities over the past six months.

Pakalapati said domestic demand alone represents around ₹300 crore in potential revenue, while exports could contribute another ₹100 crore.

He also highlighted the company’s integrated manufacturing model.

The company designs, develops and manufactures motors, propellers, electronics and power distribution systems as an integrated package for drone manufacturers.

Pakalapati added that the business currently generates gross margins of 60-70%, reflecting the value of its integrated product offering.

For the full interview, watch the accompanying video