Paras Defence Q1FY26 Profit Rises to ₹15.43 Cr; Approves ₹0.50 Final Dividend

Mumbai, July 25, 2025 –  Paras Defence and Space Technologies Ltd (NSE: PARAS | BSE: 543367) announced its unaudited financial results for the quarter ended June 30, 2025 (Q1FY26), reporting a steady net profit of ₹15.43 crore. The company also declared a final dividend of ₹0.50 per share for FY25, reaffirming shareholder value. The performance reflects stable execution across its – defence optics, electronics, and heavy engineering segments. Despite macroeconomic headwinds and a competitive environment; Paras Defence maintained healthy margins, supported by a strong order book and ongoing defence modernization initiatives by the government.

Financial Highlights (Standalone)

Paras Defence and Space Technologies Ltd reported its Q1FY26 financial results with revenue from operations reaching ₹87.41 crore, reflecting a 12.6% increase year-on-year compared to ₹77.60 crore in Q1FY25. However, this also marked a sequential decline of 3.1% from ₹90.16 crore in the previous quarter. The company’s total income rose to ₹90.13 crore, up 13.9% YoY from ₹79.08 crore, but down 5.4% quarter-on-quarter from ₹95.32 crore.

Profit before tax stood at ₹20.61 crore, slipping 3% YoY and 8.9% QoQ. Net profit for the quarter came in at ₹15.43 crore, marginally lower than ₹15.87 crore in Q1FY25 and ₹17.02 crore in Q4FY25, translating to a 2.8% YoY and 9.3% QoQ decline. The company’s basic earnings per share (EPS) stood at ₹3.83, compared to ₹4.07 a year ago and ₹4.22 in the preceding quarter.

The auditors issued an unmodified review opinion on both standalone and consolidated results.

Segment Performance

In Q1FY26, Paras Defence and Space Technologies Ltd’s segment-wise performance highlighted strong contributions from its Optics & Optronic Systems division, which generated ₹55.08 crore in revenue and ₹22.12 crore in profit. This segment remained the dominant revenue and profit driver, benefiting from continued execution of defence optics contracts and electro-optical system deliveries. The Defence Engineering segment brought in ₹35.08 crore in revenue and ₹5.62 crore in profit during the quarter.

Consolidated Results (Q1FY26)

On a consolidated basis, which includes results from subsidiaries and associates (with minor losses from joint ventures), the company reported a total income of ₹95.57 crore in Q1FY26, up from ₹83.15 crore in Q1FY25. Consolidated net profit stood at ₹14.21 crore, slightly lower than ₹14.91 crore in the year-ago period. The basic earnings per share (EPS) declined to ₹3.69 from ₹4.28 YoY.

Stock Performance

As of 2:44 PM IST on July 25, shares of Paras Defence and Space Technologies Ltd were trading at ₹778.70, down 3.82% or ₹30.90, after opening at ₹811.00 and hitting an intraday high of ₹811.80 and a low of ₹775.00.

Dividend Declaration

The company confirmed the final dividend of ₹0.50 per equity share of ₹5 each (10%) for FY25. The record date has been set as Friday, August 8, 2025, and the dividend will be paid within 30 days of the AGM approval.

Corporate Developments

• The 16th Annual General Meeting (AGM) will be held on August 21, 2025, via video conferencing.
• Mr. Sharad Virji Shah will be reappointed as Director, retiring by rotation.
• Approval has been granted for Material Related Party Transactions with Controp-Paras Technologies Pvt Ltd.
• Closure of share transfer books is scheduled from August 15 to August 21, 2025.

Management Commentary

Shilpa Mahajan, Whole-Time Director, stated, “We continue to invest in our high-tech defence manufacturing capabilities and innovation-led engineering platforms. The steady performance this quarter reflects healthy order execution across verticals.”

Strategic Outlook

Paras Defence continues to benefit from India’s growing defence indigenisation efforts. Recent traction in precision optics and electronic systems supports a robust pipeline for H1FY26. The company is also expanding its EMP protection and anti-drone offerings through subsidiaries.

About the Company

Paras Defence and Space Technologies Ltd is a listed company engaged in designing, developing, manufacturing, and testing defence and space engineering products, including optics, electronics, EMP protection, and turnkey solutions. It is listed on both NSE and BSE.

REF:https://nsearchives.nseindia.com/corporate/PARAS_25072025140402_BMOutcome.pdf

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