Synopsis: From ISRO to DRDO, this defence stock came into focus after reporting strong Q2FY26 results with net profit up 52.7 percent and solid performance across the Defence Engineering segment, supported by a diversified Government, private, and international client base.
A defence stock came into focus during Thursday’s session after posting a robust Q2FY26 performance, with net profit up over 50 percent year-on-year. Investor confidence was supported by sequential growth across key metrics and a strong client base.
Paras Defence and Space Technologies Ltd, with a market capitalization of Rs. 5,795.84 crore, opened at Rs. 704.20 on the BSE and hit an intraday high of Rs. 731.95 against a previous close of Rs. 703.80, marking an intraday gain of 3.95 percent.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Total revenue rose from Rs. 95.6 crore in Q1FY26 to Rs. 108 crore in Q2FY26, up 12.87 percent. Operating profit increased from Rs. 22 crore to Rs. 29.7 crore, a rise of 35 percent, with operating margin expanding from 23.55 percent to 28.08 percent.
Profit before tax grew from Rs. 19.5 crore to Rs. 26.6 crore, up 36.41 percent, while net profit increased from Rs. 14.2 crore to Rs. 19.4 crore, a jump of 36.6 percent. EPS rose from Rs. 1.9 to Rs. 2.6.
Year-on-Year (YoY): Compared to Q2FY25, total revenue increased from Rs. 88.8 crore to Rs. 108 crore, up 21.62 percent. Operating profit rose from Rs. 22.8 crore to Rs. 29.7 crore, a growth of 30.26 percent, with operating margin improving from 26.12 percent to 28.08 percent.
Profit before tax increased from Rs. 18.2 crore to Rs. 26.6 crore, up 46.15 percent, while net profit surged from Rs. 12.7 crore to Rs. 19.4 crore, a rise of 52.7 percent. EPS increased from Rs. 1.7 to Rs. 2.6.
Revenue Segmentation
Paras Defence recorded mixed trends across its business segments in Q2FY26. The Optics and Optronics Systems segment saw revenue decline to Rs. 38 crore, down from Rs. 42.5 crore in Q1FY26 and Rs. 39 crore in Q2FY25. The Defence Engineering segment showed strong growth, rising to Rs. 67 crore from Rs. 51 crore in Q1FY26 and Rs. 48 crore in Q2FY25.
Client Profile
The company serves a diversified set of customers across domestic, private, and international defence sectors. Domestic government clients include ISRO (Indian Space Research Organisation), Bharat Dynamics, Hindustan Aeronautics, DRDO (Defence Research and Development Organisation), and Bharat Electronics. Private domestic clients include Godrej, Tata, L&T, Kirloskar, Solar Industries, Premier Explosives, and Astra Rafael. International customers include Rafael, Elbit Systems, and other global defence players.
About the Company
Paras Anti-Drone Technologies Pvt. Ltd., a subsidiary of Paras Defence and Space Technologies Ltd., develops advanced Anti-Drone Systems and RF/Microwave products. Its flagship offerings include Wide-Band Drone Detection and Jamming Systems, Drone Jammer Guns, Agile and Portable Counter-Drone Systems, and Digital Mobile Radios.
The company operates across two core verticals: Optics & Optronic Systems and Defence Engineering, which includes Defence Electronics, Electromagnetic Pulse (EMP) Protection Solutions, and Heavy Engineering. Paras is the only Indian company developing and manufacturing Optronic Periscopes in the Asia-Pacific region for submarine applications.
-Manan Gangwar
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