Synopsis: Paras Defence shares surged over 56% in a month, driven by strong momentum in India’s defence manufacturing sector, a order from BEL, robust Q4FY26 earnings growth, and increasing investor optimism around defence indigenisation and exports.
The shares of this company primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions are in the spotlight after it delivered robust returns of up to 56 per cent in the last month amidst volatility and chaos in the global markets.
With a market capitalisation of Rs. 10,732 cr, the shares of Paras Defence and Space Technologies Ltd were trading at Rs. 1332.55 per share, down from its previous close of Rs. 1,376.75 per share. The stock has delivered strong returns across timeframes, gaining 54% over the past year, 95% year-to-date, 97% in the last six months, and 56% over the past month.
Booming Domestic Defence Ecosystem
The primary catalyst behind this rally is the rapid growth of India’s indigenous defence production. The Ministry of Defence announced that domestic production climbed 15.6% to reach Rs. 1.78 lakh crore in FY26, up from Rs. 1.54 lakh crore in the previous fiscal year.
Over a longer horizon, India’s defence production has more than doubled from Rs. 84,643 crore in FY21. While public sector undertakings contribute the majority of this production (76%), the private sector’s share successfully scaled up to 24%, reaching Rs. 42,000 crore.
This localized production growth heavily supported India’s record-high defence exports, which touched Rs. 38,424 crore in FY 2025-26. Government initiatives focused on “Aatmanirbhar Bharat” (self-reliance) have significantly modernized the armed forces and improved overall preparedness across land, air, sea, cyber, and space domains, boosting investor confidence in the sector’s long-term sustainability.
Recent order
On June 2nd, Paras Defence and Space Technologies Ltd has received an order worth approximately Rs. 52.82 crore from Bharat Electronics Limited for the supply of electro-optics systems. The domestic order is scheduled to be executed on or before September 2027. The company stated that the contract is not a related-party transaction and that neither the promoter nor promoter group has any interest in the awarding entity.
Paras Defence and Space Technologies is one of the leading Indian defence engineering companies engaged in the design, development, manufacturing, and testing of defence and space-related products. The company operates across key segments such as defence electronics, optics and optronics, heavy engineering, electromagnetic pulse (EMP) protection solutions, and space technologies.
On the financial front, it reported strong growth in Q4FY26. Revenue surged 58% YoY to Rs. 171 crore from Rs. 108 crore in Q4FY25, while EBITDA increased 51% YoY to Rs. 42.6 crore from Rs. 28.3 crore. Net profit jumped 87% YoY to Rs. 38.9 crore compared to Rs. 20.8 crore in the year-ago period, with EPS rising 74% to Rs. 4.27 from Rs. 2.45.
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