Shares of defence engineering firm Paras Defence and Space Technologies have been in focus, decreasing marginally by 0.14% to ₹1,373.50 on May 6, 2025, on the BSE. The company's market capitalisation stood at ₹5,543.20 crore. This recent market activity follows significant corporate developments, including a new international collaboration and the announcement of robust fourth-quarter financial results.
A primary catalyst for the increased attention on Paras Defence shares is the signing of a Memorandum of Understanding (MoU) with Israel's HevenDrones Ltd. This agreement aims to explore potential opportunities within both the defence and civil drone markets. As per regulatory filing, the intent is to create new business opportunities and expand the presence of both parties in the Indian and global defence sectors.
A key aspect of this collaboration is the plan to establish a Joint Venture (JV) in India. This JV will focus on the development and manufacturing of logistics and cargo drones. The initiative is explicitly stated to support the Government of India’s Make in India campaign and is designed to cater to both local and international markets. This partnership marks Paras Defence’s second recent tie-up with an Israeli firm; the company earlier signed an MoU with MicroCon Vision to bolster India's defence and drone ecosystem.
Paras Defence also received a licence to manufacture light machine guns earlier this year. The company's performance for the fourth quarter of the fiscal year was impressive, with a remarkable 97% increase in net profit, reaching ₹19.7 crore compared to ₹10 crore during the same period last year. Revenue also demonstrated healthy growth, rising by 35.8% year-on-year to ₹108.2 crore, up from ₹79.7 crore in the previous year's quarter.
Operational performance metrics also showed significant improvement. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) soared to ₹28.3 crore from ₹3.4 crore last year. Consequently, margins expanded nearly 10 percentage points, reaching 26.2% from 15.6% a year ago.
The company's board has also approved a stock split, converting one equity share with a face value of ₹10 into two shares of ₹5 each. The record date for this corporate action is yet to be announced.
Paras Defence specialises in designing, developing, manufacturing, and testing a wide array of defence and space engineering products and solutions. Overall, the combination of a new strategic partnership, strong financial results, and planned corporate actions appears to be driving the recent investor interest in Paras Defence shares.
In a related development, shares of Paras Defence and Space Technologies Ltd gained up to 4% after the company announced a Strategic Joint Venture with HevenDrones. On May 6, 2025, the shares were trading at ₹1,366.95 per share, decreasing around 0.64% compared to the previous closing price of ₹1,375.70 apiece, with a market capitalisation of ₹5,507.74 crore.
The Paras Defence–HevenDrones JV is set to establish a new entity in India to design, manufacture, and supply next-generation drone systems tailored for India’s defence and homeland security landscape, with long-term plans to address global markets. Furthermore, this partnership brings hydrogen-powered drone technology to India, combining Paras’s manufacturing strength with HevenDrones’ platforms.
As a pioneer in this space, the JV will offer ready-to-fly drones with long endurance and modular payloads, targeting logistics, surveillance, defence supply chains, and high-altitude operations from Indian soil. “India is a priority market for drone deployment at scale, and HevenDrones’ combat-tested portfolio provides a strategic edge,” said Munjal Sharad Shah, Managing Director of Paras Defence and Space Technologies Ltd. “This JV enables us to deliver world-class Made in India drone systems for local and global markets.”
Paras Defence, a top Indian private firm, nearly doubled its FY25 net profit on 35.8% revenue growth and 26.2% EBITDA margins. Strong performance is backed by a ₹9 billion order book, stock split, and dividend declaration. Revenue magnified by 35% from ₹80 crore in Q4FY24 to ₹108 crore in Q4FY25. During the same time frame, net profit jumped by 110% from ₹10 crore to ₹21 crore.
Recently, the board also approved the subdivision/split of the existing 1 equity share of face value of ₹10 each, fully paid-up, into 2 equity shares of face value of ₹5 each, fully paid-up, subject to shareholders’ approval. Paras Defence serves a wide range of prestigious Indian government clients, including DRDO, ISRO, HAL, Bharat Electronics, BrahMos, and the Department of Atomic Energy. Its customer base spans key sectors like defence, space, shipbuilding, electronics, and research, reflecting strong credibility and strategic integration with India’s critical technology and defence ecosystem.
Paras Defence and Space Technologies Limited is engaged in designing, developing, manufacturing, testing, and commissioning of products, systems, and solutions for defence and space applications. The Company operates through two segments: Optics and Optronic Systems, and Defence Engineering.
Overall, Paras Defence and Space Technologies appears to be positioning itself strongly within the defence sector, leveraging strategic partnerships, solid financial performance, and a commitment to innovation and local manufacturing to enhance its market presence.
