Zen Technologies Subsidiary Vector Technics Targets ₹400 Crore Revenue After Capacity Expansion

Vector Technics, the drone propulsion subsidiary of Zen Technologies, is gearing up for its next phase of growth after significantly expanding its manufacturing capabilities. The company has increased its annual production capacity to three lakh drone propulsion units and believes the expansion could support revenue of up to ₹400 crore as demand for indigenous drone components accelerates in India and overseas.

The company is betting on rising adoption of drones across defence and commercial applications, with domestic demand expected to remain the primary growth engine while exports gradually gain momentum.

Capacity Expansion Positions Company for Higher Demand

According to Co-founder and CEO Prudhvi Raj Pakalapati, the company's recent investment has focused on automating manufacturing operations and removing production bottlenecks that had previously limited its ability to fulfil customer orders.

With the support of Zen Technologies, Vector Technics has strengthened its engineering capabilities while scaling its manufacturing infrastructure. The facility can now produce three lakh propulsion units annually, and management says additional expansion can be undertaken if market demand continues to increase.

Pakalapati estimates that the domestic market alone presents a revenue opportunity of nearly ₹300 crore, while exports could contribute another ₹100 crore over time.

Order Book and Customer Base Continue to Grow

The company has already built an order book of approximately ₹40 crore for the current financial year, which it plans to execute by supplying propulsion systems to drone manufacturers.

Instead of bidding directly for defence contracts, Vector Technics supplies mission-critical propulsion systems to drone companies participating in government and military programmes. Its customer base includes leading drone manufacturers such as Tata and ideaForge.

The company reported revenue of around ₹10 crore in FY26, while its current monthly revenue has increased to ₹3-5 crore, implying an annualised revenue run rate of nearly ₹50 crore.

Integrated Manufacturing Supports Strong Margins

Vector Technics differentiates itself through its integrated manufacturing model, designing and producing key drone components—including motors, propellers, electronic controllers, and power distribution systems—under one roof.

This approach enables the company to offer complete propulsion solutions rather than standalone products. According to management, the integrated business model delivers gross margins of 60-70%, reflecting the higher value addition and technological expertise involved in manufacturing critical drone systems.

Read more: Apollo Micro Systems Share Price Falls Over 5%; Board Approves ₹3,322.23 Crore Fundraise.

Conclusion

With expanded production capacity, a growing order pipeline, and increasing demand for locally manufactured drone components, Vector Technics is positioning itself as a key player in India's rapidly evolving drone ecosystem. Backed by Zen Technologies, the company aims to capitalise on opportunities in both domestic and international markets, with its integrated manufacturing capabilities expected to support long-term, high-margin growth.

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