Paras Defence bags Defence Ministry order for optronic periscopes; stock dips

Paras Defence and Space Technologies Ltd on Monday received an order from the Ministry of Defence to supply two optronic periscopes for submarine applications, valued at around Rs 71.68 crore, including GST. The contract is slated for execution between August and September 2026. Despite the order win, the stock slipped 1.55 per cent to hit a day low of Rs 754.

In terms of earnings, the private defence and space engineering firm posted a 50 per cent year-on-year (YoY) rise in net profit at Rs 21 crore, compared with Rs 14 crore in the corresponding quarter of the previous fiscal. Revenue for the quarter came in at Rs 106 crore, marking a 21.8 per cent YoY increase, driven by steady execution across its optics, defence electronics and space engineering segments.

Operational performance also strengthened during the quarter. EBITDA rose 32 per cent YoY to Rs 30 crore, against Rs 22.7 crore a year earlier, signalling improved operating leverage and efficient cost management. The EBITDA margin expanded to 28.3 per cent from 26.1 per cent in the same period last year, highlighting better profitability across divisions.

On the technical front, the stock traded above its 5-, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) stood at 64.39. A level below 30 is defined as oversold while a value above 70 is considered overbought.

According to BSE data, Paras Defence commanded a standalone/consolidated P/E ratio of 85.38/68.13, with a P/B value of 12.73. Its EPS stood at 8.85/11.07, while the company reported a return on equity (RoE) of 14.92 per cent. Trendlyne data showed a one-year beta of 1.2, indicating higher volatility.

Paras Defence operates in five key verticals: defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies. The company designs, manufactures and tests a range of mission-critical products for defence and space applications.

As of September 2025, promoter shareholding stood at 53.20 per cent, marking a 0.54 per cent decline from the previous quarter.