Paras Defence and Space Technologies Limited Earnings Summary — Q1 FY2027
Paras Defence Achieves 37% Revenue Growth Driven by Optics Expansion and New Subsidiaries
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 25.3% sequentially in Q1 FY2027.
- Revenue of ₹128 Cr is 37.3% higher year-on-year.
- Revenue has compounded at 23.4% annualised over the last 10 quarters.
- Net profit of ₹21 Cr is 42.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 39.9% annualised across the period.
- Operating margin stands at 24.9% in Q1 FY2027.
- Operating margin expanded by 147 bps year-on-year.
- Over the last two years operating margin has contracted by 389 bps.
- PBT margin is 21.9%.
- Expense growth of 34.6% remained below revenue growth of 37.3%.
- Operating profit of ₹32 Cr is 45.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 128 | 171 | 106 | 106 | 93 | 108 | 86 | 87 | 84 | 80 |
| Expenses | Improving | 96 | 129 | 80 | 76 | 71 | 80 | 64 | 64 | 59 | 67 |
| Operating Profit | Improving | 32 | 43 | 26 | 30 | 22 | 28 | 22 | 23 | 24 | 12 |
| Operating Margin | Improving | 24.9% | 24.9% | 24.6% | 28.1% | 23.5% | 26.1% | 25.7% | 26.1% | 28.8% | 15.4% |
| Other Income | Volatile | 2 | 12 | 2 | 2 | 2 | 4 | 2 | 2 | 1 | 6 |
| Interest | Volatile | 1 | 2 | 1 | 1 | 1 | 2 | 1 | 3 | 2 | 2 |
| Depreciation | Improving | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 |
| Profit Before Tax | Volatile | 28 | 48 | 23 | 27 | 19 | 27 | 19 | 18 | 20 | 12 |
| Tax | Improving | 7 | 10 | 6 | 7 | 5 | 6 | 5 | 5 | 5 | 3 |
| Net Profit | Improving | 21 | 34 | 18 | 21 | 15 | 20 | 15 | 14 | 15 | 10 |
| Net Margin | Improving | 16.6% | 20.1% | 17.1% | 19.5% | 16.0% | 18.2% | 17.5% | 15.9% | 17.8% | 12.5% |
Key Takeaways
- Revenue grew 37% year-on-year to ₹127.9 Crore, primarily led by the Optics and Optronic Systems segment which grew 62% YoY.
- Consolidated Net Profit rose 44% YoY to ₹21.2 Crore, though it saw a sequential decline from the elevated Q4 FY26 levels.
- The company successfully incubated two new subsidiaries during the quarter: Paras Semiconductors Private Limited and Paras Avionics Private Limited.
- The Board approved the total divestment of the 47.50% equity stake in Krasny Paras Defence Technologies Private Limited.
- The Optics and Optronic Systems segment contributed significantly to the bottom line with segment results increasing to ₹2,642 Lakhs from ₹2,212 Lakhs YoY.
- Employee benefit expenses increased 31% YoY to ₹15.1 Crore, partly due to the implementation of the Paras Defence ESOP 2024 plan.
Management Guidance
Management remains focused on scaling indigenous defense procurement and high-barrier segments like Space Optics and EMP protection. The strategic divestment of the Krasny Paras associate and the creation of dedicated semiconductor and avionics subsidiaries signal a shift toward specialized vertical integration.
Sentiment Shift
Improving
Strong year-on-year growth across key segments and aggressive expansion into new high-tech subsidiaries offset the typical sequential quarterly volatility inherent in defense contracting.
Outlook
The outlook remains robust due to the company's niche positioning in space optics and submarine periscopes. While working capital cycles remain a sector-wide challenge, the company's almost debt-free balance sheet and widening product portfolio in drones and semiconductors position it well for the government's indigenization push.
From the Annual Report (Key Quotes)
“Board of Directors... have inter alia considered and approved... divestment of Company’s entire equity stake/ investment of 47.50% held in its Associate Company, Krasny Paras Defence Technologies.”
“During the quarter ended June 30, 2026, the Company invested in newly incorporated 'Paras Semiconductors Private Limited' and 'Paras Avionics Private Limited'.”
“The Auditors have issued the said Report with unmodified opinion.”
Official Quarterly Documents
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This summary is AI-generated from Paras Defence and Space Technologies Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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