Synopsis:
Paras Defence signed a 2-year exclusive agreement with Germany’s HPS to jointly develop antenna reflector subsystems for defence and space applications in India.
This small-cap defence stock, engaged in designing and manufacturing defence electronics, space optics, EMP protection, and engineering solutions for military and space use, jumped 2 percent after signing a teaming agreement with a German firm for deployable antenna subsystems in India.
With a market capitalization of Rs. 5,197.88 crores, the share of Paras Defence and Space Technologies Limited has reached an intraday high of Rs. 657.90 per equity share, rising nearly 2.20 percent from its previous day’s close price of Rs. 643.75. Since then, the stock has retreated and is currently trading at Rs. 645 per equity share.
What is the news?
On August 6, 2025, Paras Defence and Space Technologies Limited (PARAS) announced the signing of a Teaming Agreement with High Performance Space Structure Systems GmBH (HPS), Germany.
The agreement aims to facilitate exclusive collaboration between the two companies in India for the design, manufacturing, integration, and testing of Unfurlable/Deployable Antenna Reflector Subsystems, including reflector and arm assemblies, HDRMs, thermal hardware, and deployment electronics.
This strategic partnership leverages HPS’s expertise in high-performance space structures and PARAS’s strong presence in the Indian defence and space sector. The agreement is valid for two years, with provisions for extension upon mutual consent.
Order Book
As of March 2025, Paras Defence and Space Technologies Limited reported a strong consolidated order book of Rs. 928 crore, showing consistent growth over the years, from Rs. 215.1 crore in March 2021 to Rs. 576 crore in March 2024. This reflects the company’s increasing project wins and a robust demand pipeline in the defence sector.
The order book is split into two main segments, which include 60 percent from Optics and Optronic Systems and 40 percent from Defence Engineering. This highlights the company’s core strength in high-tech optics and electro-optics systems used in surveillance and space applications, while also maintaining a significant presence in defence manufacturing and engineering.
Financial Highlights
Paras Defence and Space Technologies Limited’s revenue has increased from Rs. 84 crore in Q1 FY25 to Rs. 93 crore in Q1 FY26, which has grown by 10.71 percent. The net profit remained at Rs. 14 crore from Q1 FY25 to Q1 FY26.
Paras Defence and Space Technologies Limited’s revenue and net profit have grown at a CAGR of 25.88 percent and 31.22 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 15.6 percent and 11.2 percent, respectively. Paras Defence and Space Technologies Limited has an earnings per share (EPS) of Rs. 7.93, and its debt-to-equity ratio is 0.04x.
Company Overview
Paras Defence and Space Technologies Limited is a leading Indian defence engineering company with over 40 years of experience. It specializes in designing, developing, manufacturing, and testing products for the defence and space sectors.
The company operates in four key areas, which include Defence and Space Optics, Defence Electronics, Heavy Engineering, and EMP Protection. Its offerings include surveillance optics, missile components, electronic warfare systems, and EMP shielding solutions.
Paras Defence has also formed a joint venture with Israel-based HevenDrones to introduce hydrogen-powered drones in India. The JV focuses on mission-specific drones for defence and homeland security, with plans for global expansion.
Paras Defence serves a wide client base, including Indian Ordnance Factories, DRDO, ISRO, and private giants like Godrej, Tata, and L&T, while also maintaining strong international partnerships with global defence leaders Rafael, IAI, and Elbit Systems.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
