India’s defence sector is set for a massive expansion by 2047, with the total defence budget expected to soar to Rs. 31.7 lakh crore. That’s nearly five times the current allocation of Rs. 6.8 lakh crore for 2024-25, according to a report by the Confederation of Indian Industry (CII) and global consultancy firm KPMG.
The report also highlights strong growth in defence manufacturing. India’s defence production is projected to rise significantly—from Rs. 1.6 lakh crore in 2024-25 to an estimated Rs. 8.8 lakh crore by 2047. India is also setting its sights on ramping up defence exports, which are expected to jump from around Rs. 30,000 crore today to Rs. 2.8 lakh crore by 2047.
Against this backdrop of rapid expansion, listed defence companies are vying for investor attention. Two such prominent players are Data Patterns (India) Limited and Paras Defence and Space Technologies Limited. This article takes a closer look at how these two defence stocks stack up against each other in terms of financial performance, order book strength, product portfolio, and more.
Company Info & Price Movement
With a market cap of Rs. 14,010 crores, shares of a strategic Defence and aerospace electronics systems provider surged nearly 1.3 percent on BSE to Rs. 2,591 on Tuesday. The stock has delivered negative returns of around 13 percent in one year, and fell by over 2 percent in one month.
Incorporated in 1998, Data Patterns (India) Limited’s principal line of business is the design and development of electronic hardware, software, firmware, mechanical, and product prototypes, besides its testing, validation and verification.
Its involvement has been across radars, electronic warfare suites, communications, avionics, small satellites, automated test equipment, cots and programmes catering to Tejas light combat aircraft, light utility helicopter, BrahMos and other communication & electronic intelligence systems.
Meanwhile, shares of Paras Defence slumped nearly 3.3 percent to Rs. 650 on BSE, with a market cap of Rs. 5,251 crores. The stock has delivered positive returns of around 3 percent in one year, but fell by over 7 percent in one month.
Incorporated in 2009, Paras Defence and Space Technologies Limited is involved in design, development, manufacturing, testing & commissioning of products, systems and solutions for defence and space applications.
The company’s expertise spans a wide range of areas, including rockets/missiles programs, electronic warfare and surveillance, battle tank & armoured vehicles, naval systems, electromagnetic shielding, space imaging systems, space research, drone technologies, avionics, and quantum technologies.
Order Book
Data Patterns reported an order book of Rs. 814 crores in Q1 FY26, compared to Rs. 1,017 crores in Q1 FY25. The current order book is diversified, with 41.3 percent in Radar, 28.1 percent in Avionics, and 22.7 percent in AMC, among other segments. The company has also indicated a strong pipeline, with potential order inflows estimated at Rs. 2,000-3,000 crore over the next 18-24 months.
In comparison, Paras Defence reported a closing order book of Rs. 928 crores as of March 2025, with the Optics & Optronic Systems vertical contributing 60 percent and the Defence Engineering segment accounting for 40 percent. Presently, the company holds an order book exceeding Rs. 1,000 crore and is aiming to scale it up to around Rs. 1,500 crore in the near term.
Financials and More
Data Patterns experienced a decline in its revenue from operations by around 5 percent YoY from Rs. 104 crores in Q1 FY25 to Rs. 99 crores in Q1 FY26, while the net profit fell by about 21 percent YoY from Rs. 33 crores to Rs. 26 crores.
In terms of key financial metrics, the company has a Return on Equity (RoE) of 15.2 percent and a return on capital employed (RoCE) of 21 percent, with a debt-free status. Between FY22 and FY25, Data Patterns revenue grew at a 3-year CAGR of over 31 percent, while net profit surged at a CAGR of around 33 percent.
Looking ahead, the company has guided for revenue growth of 20-25 percent over the next two to three years, supported by an 80 percent gross margin and strong EBITDA margins in the range of around 35-40 percent for FY26.
On the other hand, Paras Defence experienced a significant growth in its revenue from operations by around 11 percent YoY from Rs. 83.6 crores in Q1 FY25 to Rs. 93 crores in Q1 FY26, while the net profit jumped marginally by about 2 percent YoY from Rs. 14 crores to Rs. 14.3 crores.
In terms of key financial metrics, the company has a Return on Equity (RoE) of 11.5 percent and a return on capital employed (RoCE) of 15.6 percent, with a debt to equity ratio of 0.04.
The management has expressed confidence in maintaining the growth momentum through FY26. The company is supported by a strong pipeline of opportunities, fueled by India’s focus on self-reliance in defence manufacturing, with robust growth prospects backed by steady order inflows. Between FY22 and FY25, Paras Defence revenue grew at a 3-year CAGR of nearly 26 percent, while net profit surged at a CAGR of over 31 percent.
Written by Shivani Singh
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