Hyderabad, June 23, 2025– In a major push toward strengthening India’s indigenous defence manufacturing capabilities, Zen Technologies Limited, a Hyderabad-based defence technology firm, has acquired a controlling 54.7% stake in TISA Aerospace Pvt Ltd, a drone and loitering munitions company. The deal, valued at approximately ₹6.6 crore, signals Zen’s strategic move into offensive drone systems and unmanned aerial warfare.
Deal Breakdown and Strategic Intent
The acquisition includes the purchase of 206,518 equity shares and approximately 400,000 compulsory convertible debentures (CCDs), providing Zen a majority holding and future expansion leverage within TISA Aerospace. The transaction gives Zen access to a ready-made product line in loitering munitions—autonomous drones that can hover before striking designated targets.
Zen Technologies, which already has a stronghold in anti-drone systems and defence simulations, sees the TISA deal as a vertical integration play. It allows the company to offer both offensive and defensive drone warfare solutions, thereby deepening its portfolio and improving its strategic relevance to India’s armed forces.
Market Reaction and Industry Context
Following the announcement, Zen Technologies’ stock surged 5%, hitting the upper circuit at ₹1,995.30. The market clearly responded positively to the acquisition, viewing it as a growth enabler at a time when India is placing renewed emphasis on domestic defence manufacturing and drone technology under the “Atmanirbhar Bharat” initiative.
Chairman and Managing Director of Zen Technologies, Ashok Atluri, commented on the acquisition, stating, “TISA’s expertise in loitering munitions and their successful collaboration with IIT Madras and DRDO perfectly complements our defence technology ecosystem. This is a leap forward in building an integrated drone capability, from surveillance to strike.”
TISA Aerospace: Small Firm, Big Aspirations
TISA Aerospace, founded in December 2020 by entrepreneurs Vamsi Vikas Ganesula and Kiran Kumar Vagga, has already made a name for itself by developing UAVs and loitering munitions aligned with the Indian defence sector’s specifications. Backed by R&D from DRDO and academic collaboration with IIT Madras, the startup has developed prototypes that meet tactical strike requirements.
Though still a relatively young player, TISA’s capabilities in precision-guided drone technology made it an attractive acquisition target. Its technology stack, combined with Zen’s experience in defence-grade systems and institutional relationships, offers a powerful combination for the future.
Synergies and Forward Strategy
Zen Technologies plans to integrate TISA’s R&D and production with its own infrastructure to fast-track development and reduce go-to-market timelines. The collaboration will also focus on exports, offering loitering munitions and tactical UAVs to global markets, especially in regions with rising defence budgets and conflict risks.
“This partnership allows us to expand our offerings beyond training and anti-drone systems. We are now in a position to provide a full spectrum of UAV-based defence technologies,” Atluri added.
Sectoral Landscape: The Drone Frontier
Globally, loitering munitions and UAVs are playing an increasingly vital role in modern warfare. Conflicts in Ukraine and the Middle East have demonstrated the strategic importance of drones that can surveil and strike with precision. As militaries worldwide invest heavily in these technologies, Indian firms are racing to develop homegrown alternatives to foreign systems.
India, too, is pivoting quickly. The government’s focus on defence indigenisation, increased FDI in defence manufacturing, and support for startups through DRDO’s Technology Development Fund are laying the foundation for a robust ecosystem. Zen-TISA’s partnership is likely to be seen as a model for public-private-academic collaboration in the sector.
Risks and Future Outlook
While the acquisition holds promise, there are challenges ahead:
- Regulatory Compliance: Navigating export controls and licensing for dual-use or offensive technologies.
- Rapid Technological Evolution: Staying ahead of global players will require constant R&D investment.
- Procurement Delays: The Indian defence acquisition process is often lengthy and complex.
However, Zen Technologies’ existing government relationships, proven track record, and now-enhanced capabilities could mitigate these risks and place the company at the forefront of India’s drone revolution.
Conclusion
With this acquisition, Zen Technologies has taken a decisive step toward becoming a full-spectrum player in the defence drone space. By bringing TISA Aerospace into its fold, Zen can now offer integrated surveillance, strike, and counter-drone solutions—a capability that few Indian firms currently possess.
As the global defence landscape pivots toward unmanned and precision systems, Zen’s bet on loitering munitions through TISA could pay rich dividends—not just for the company but also for India’s ambitions of becoming a global hub for drone innovation.
