Paras Defence and Space Technologies has secured a significant contract from the Defence Research and Development Organisation (DRDO), valued at approximately ₹80.28 crore inclusive of taxes. This order pertains to the development of a high-precision optical system tailored for air defence applications.
The announcement, made via an exchange filing on Monday, underscores the company’s growing role in India’s indigenous defence manufacturing ecosystem.
The contract, awarded by DRDO under the Ministry of Defence, involves specialised development work on the optical system. Such systems are critical for modern air defence networks, enabling precise detection, tracking, and engagement of aerial threats.
This aligns with India’s push towards self-reliance in defence technologies, particularly in optronics and electro-optical systems that enhance situational awareness on the battlefield.
Paras Defence clarified in its filing that neither the promoters nor the promoter group holds any interest in the awarding entity. The order does not qualify as a related party transaction, ensuring transparency and compliance with regulatory norms. The execution timeline is set at 18 months from the date of the supply order, reflecting a structured approach to project delivery.
Financially, Paras Defence demonstrated robust performance in the December quarter. Net profit surged 21.3% year-on-year to ₹18.2 crore, up from ₹15 crore in the prior year. Revenue expanded by 24% to ₹106.4 crore, compared to ₹85.8 crore previously, driven by strong contributions from core segments.
EBITDA rose 19% to ₹26.3 crore, though the margin contracted slightly to 24.7% from 25.8%. This moderation stemmed from elevated total expenses, including higher finance costs and employee benefits, which partially offset operational gains.
Segment-wise, the Optics and Optronics Systems business shone brightly, with revenue climbing to ₹58.4 crore from ₹44.4 crore a year earlier. This segment’s growth is particularly noteworthy, as it directly ties into the new DRDO order and positions Paras as a key player in high-precision defence optics.
The Defence Engineering segment also advanced, posting ₹47.95 crore in revenue against ₹41.33 crore in the corresponding quarter last year. These figures highlight Paras Defence’s diversified portfolio and its ability to capitalise on India’s defence indigenisation drive.
This DRDO contract arrives at a pivotal moment for Paras Defence, which has been scaling up its capabilities in aerospace and defence domains. The company, listed on the stock exchange, has increasingly partnered with public sector undertakings and DRDO labs, contributing to projects in missiles, UAVs, and surveillance systems.
High-precision optical systems like the one under development are vital for air defence platforms such as the Akash missile system or emerging integrated air defence networks. They incorporate advanced lenses, sensors, and stabilisers to function in harsh environments, providing real-time targeting data to command centres.
India’s defence sector has witnessed accelerated procurement and development under initiatives like Atmanirbhar Bharat. Paras Defence’s order exemplifies how private firms are filling critical gaps left by traditional public sector entities, fostering innovation and faster timelines.
The 18-month execution period allows Paras to leverage its Bengaluru-based facilities, known for optics manufacturing. This could enhance the company’s technical expertise and open doors to follow-on orders or exports, aligning with India’s strategic ambitions in the Indo-Pacific region.
Looking ahead, this order strengthens Paras Defence’s order book, potentially improving investor sentiment despite the day’s share price dip. With a track record of quarterly growth and a focus on high-margin defence segments, the firm appears well-positioned amid rising geopolitical tensions and defence budgets.
ET News
Source:
www.indiandefensenews.in