This small-cap defence stock specializes in designing, manufacturing, and supplying advanced defence and space optics, optronic systems, and other essential technologies across multiple sectors, is in focus after the company reported a strong March quarterly results with a 117 percent QOQ increase in net profit and announced a 1:5 stock split and a final dividend of Rs. 0.5 per equity share.
Stock Price Movement
With a market capitalization of Rs. 5,501.09 crore, the shares of Paras Defence and Space Technologies Limited closed at Rs. 1,365.25 per equity share on Wednesday, rising nearly 2.11 percent from its previous day’s close price of Rs. 1,337.05.
Q4 FY25 Result Walkthrough
Coming into the quarterly results of Paras Defence and Space Technologies Limited, the company’s consolidated revenue from operations increased by 35.81 percent YOY, from Rs. 79.69 crore in Q4 FY24 to Rs. 108.23 crore in Q4 FY25, and grew by 26.19 percent QoQ from Rs. 85.77 crore in Q3 FY25. The company generated 50.89 percent of its revenue from optics and optronic systems sales and 49.11 percent from defence engineering sales in Q4 FY25.
In Q4 FY25, Paras Defence and Space Technologies Limited’s consolidated net profit increased by 116.98 percent YOY, reaching Rs. 20.83 crore compared to Rs. 9.60 crore during the same period last year. As compared to Q4 FY25, the net profit has increased by 50.40 percent, from Rs. 13.85 crore in Q3 FY25. The basic earnings per share increased by 91.01 percent and stood at Rs. 4.89 as against Rs. 2.56 recorded in the same quarter in the previous year 2024.
Also read: Multibagger defence stock with 50% CAGR growth guidance to add to your watchlist
Stock split
The company approved a stock split, dividing each existing 1 equity share of Rs. 10 face value into 2 equity shares of Rs. 5 each, fully paid-up, enhancing liquidity and shareholder accessibility.
Dividend
The company’s board of directors has recommended paying a final dividend at the rate of 10 percent on the face value of paid-up equity shares of Rs. 5 each for the financial year 2024-25, which is a dividend of Rs. 0.5 per equity share.
Financial Highlights (FY24-25)
Paras Defence and Space Technologies Limited’s revenue has increased from Rs. 253.50 crore in FY24 to Rs. 364.66 crore in FY25, which is a growth of 43.85 percent. The net profit has also grown by 104.77 percent, from Rs. 30.03 crore in FY24 to Rs. 61.49 crore in FY25.
Clientele
The company serves diverse clients, including Indian Ordnance Factories, DRDO, ISRO, and private leaders like Godrej, Tata, and L&T, while maintaining strong global ties with Rafael, IAI, and Elbit Systems.
Business operations
The company provides a diverse range of products and solutions in two main areas such as Defence & Space Optics and Optronic Systems. It operates two manufacturing facilities, one in Ambernath (Thane) and the other in Nerul (Navi Mumbai).
Written By – Nikhil Naik
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