Order Book Or Contract Wins
Expected: Q4 FY26HIGH confidence
What: Order Book Value: ₹900 - ₹950 crore
Impact: Targeting ₹1,100-1,200 Cr by year-end
Paras Defence and Space Technologies Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +36.1%Weak4w Streak
In , Paras Defence and Space Technologies Ltd (Aerospace & Defence - Equipments) is outperforming Nifty 500 with +36.1% relative strength. Fundamentals: Weak. On a 4-week streak.
Paras Defence and Space Technologies Ltd Key Facts
- PE Ratio
- 95.1x
- Market Cap
- ₹6,984 Cr
- PAT Growth YoY
- +21%
- Revenue Growth YoY
- +23%
- OPM
- 25.0%
- RS vs Nifty 500
- +36.1%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
📊Debt increased 133% YoY — leverage rising
👔Promoter stake down 5.7% this quarter
🌐FII stake increased 2.2% this quarter
💰Trading 56% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Q4 FY26HIGH
2. Value Added Product Mix Shift
Q3 FY26MEDIUM
Key Risks
1. Rising input costs led to a 343 bps QoQ contraction in operating margins
MEDIUM2. One-time gratuity impact of ₹1
LOWSector-Specific Signals
Order Book₹950 croreNot Given
Optics & Optronics Revenue₹58.4 croreNot Given
Employee Benefit Expenses₹13.40 croreNot Given
Key Numbers
PAT Growth YoY
+21%
Stable
Revenue YoY
+23%
Stable
Operating Margin
25.0%
-100 bps YoY
PE Ratio
95.1
Current Price
₹867
Dividend Yield
0.03%
Fundamental Score
24/100
Weak
3Y PAT CAGR
+31%
Market Cap
7.0K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Paras Defence and Space Technologies Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Value Added Product Mix Shift
Expected: Q3 FY26MEDIUM confidence
What: Segment Revenue: ₹58.4 crore
Impact: 52% QoQ growth in Optics
What Are the Key Risks for Paras Defence and Space Technologies Ltd?
Earnings deceleration risks from management commentary
Rising input costs led to a 343 bps QoQ contraction in operating margins
MEDIUMTrigger: Rising input costs led to a 343 bps QoQ contraction in operating margins.
Impact: PAT impact: 11.8% QoQ decline
Management view: Expecting margin improvement in Q4 through high-value order execution.
Monitor: commodity
One-time gratuity impact of ₹1
LOWTrigger: One-time gratuity impact of ₹1.68 crore due to new Labour Code transition.
Impact: PAT impact: ₹1.68 crore
Management view: One-time provision already accounted for in Q3 results.
Monitor: labor
What Did Paras Defence and Space Technologies Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹106.35 crore
YoY +24%QoQ +0.6%
Revenue growth was driven by the Optics and Optronics segment, which saw a 52% sequential increase.
EBITDA
₹26.22 crore
YoY +19%Margin 24.65%
Margins were pressured by higher input costs and one-time employee-related charges including ESOP and gratuity.
PAT
₹18.21 crore
YoY +21.08%QoQ -11.77%
PAT grew year-on-year but declined sequentially due to margin compression and increased operating expenses.
Other Highlights
• Optics/Optronics revenue reached ₹58.4 crore, up 52% QoQ.
• One-time gratuity impact of ₹1.68 crore included in employee expenses.
• Board approved formation of new subsidiary 'Paras Avionics Private Limited'.
What Sector Metrics Matter for Paras Defence and Space Technologies Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
₹950 crore
YoY Not GivenQoQ Flat
Why: Retained order book levels despite revenue execution in Q3.
Optics & Optronics Revenue
₹58.4 crore
YoY Not GivenQoQ 52%
Why: Strong execution in the optics segment during the quarter.
Employee Benefit Expenses
₹13.40 crore
YoY Not GivenQoQ 21%
Why: Impacted by ESOP costs and one-time gratuity charges of ₹1.68 crore.
What Is Paras Defence and Space Technologies Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
30%
OPM Guidance
28.5%
Revenue Outlook
₹450 crore to ₹500 crore
Margin Outlook
Targeting EBITDA margins between 27% and 30%.
Management Tone: CAUTIOUS
Guidance Changes
LOWERED
Order Book Target: ₹1,500 crore → ₹1,100 - ₹1,200 crore
Spillover of certain orders to next year
How Fast Is Paras Defence and Space Technologies Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +23% | +26% | Stable |
| PAT (Net Profit) | +21% | +31% | Stable |
| OPM | 25.0% | -100 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Paras Defence and Space Technologies Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Paras Defence and Space Technologies Ltd's latest quarterly results?
Paras Defence and Space Technologies Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +21.4% (stable)
- Revenue Growth YoY: +23.3%
- Operating Margin: 25.0% (volatile)
Is Paras Defence and Space Technologies Ltd's profit growing or declining?
Paras Defence and Space Technologies Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +21.4% (latest quarter)
- PAT Growth QoQ: -10.5% (sequential)
- 3-Year PAT CAGR: +31.2%
- Trend: Stable — consistent growth pattern
What is Paras Defence and Space Technologies Ltd's revenue growth trend?
Paras Defence and Space Technologies Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +23.3%
- Revenue Growth QoQ: 0.0% (sequential)
- 3-Year Revenue CAGR: +25.9%
How is Paras Defence and Space Technologies Ltd's operating margin trending?
Paras Defence and Space Technologies Ltd's operating margin is volatile.
- Current OPM: 25.0%
- OPM Change YoY: -1.0% basis points
- OPM Change QoQ: -3.0% basis points
What is Paras Defence and Space Technologies Ltd's 3-year profit and revenue CAGR?
Paras Defence and Space Technologies Ltd's long-term compounding rates
- 3-Year Profit CAGR: +31.2%
- 3-Year Revenue CAGR: +25.9%
Is Paras Defence and Space Technologies Ltd's growth accelerating or decelerating?
Paras Defence and Space Technologies Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: -24.8% bps
- Sequential Acceleration: -46.2% bps
What is Paras Defence and Space Technologies Ltd's trailing twelve month (TTM) performance?
Paras Defence and Space Technologies Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹71 Cr
- TTM PAT Growth: +39.2% YoY
- TTM Revenue: ₹413 Cr
- TTM Revenue Growth: +22.6% YoY
- TTM Operating Margin: 25.6%
Is Paras Defence and Space Technologies Ltd overvalued or undervalued?
Paras Defence and Space Technologies Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 95.1x
- Price-to-Book: 10.4x
What is Paras Defence and Space Technologies Ltd's current PE ratio?
Paras Defence and Space Technologies Ltd's current PE ratio is 95.1x.
- Current PE: 95.1x
- Market Cap: 7.0K Cr
- Dividend Yield: 0.03%
How does Paras Defence and Space Technologies Ltd's valuation compare to its history?
Paras Defence and Space Technologies Ltd's current PE is 95.1x.
- Current PE: 95.1x
- Valuation Assessment: Significantly Overvalued
What is Paras Defence and Space Technologies Ltd's price-to-book ratio?
Paras Defence and Space Technologies Ltd's price-to-book ratio is 10.4x.
- Price-to-Book (P/B): 10.4x
- Book Value per Share: ₹83
- Current Price: ₹867
Is Paras Defence and Space Technologies Ltd a fundamentally strong company?
Paras Defence and Space Technologies Ltd is rated Weak with a fundamental score of 24.36/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +23.3% (10% weight)
- PAT Growth YoY: +21.4% (10% weight)
- PAT Growth QoQ: -10.5% (10% weight)
- Margins stable (10% weight)
Is Paras Defence and Space Technologies Ltd debt free?
Paras Defence and Space Technologies Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹56 Cr
What is Paras Defence and Space Technologies Ltd's return on equity (ROE) and ROCE?
Paras Defence and Space Technologies Ltd's return ratios over recent years
- FY2023: ROCE 13.0%
- FY2024: ROCE 10.0%
- FY2025: ROCE 16.0%
Is Paras Defence and Space Technologies Ltd's cash flow positive?
Paras Defence and Space Technologies Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹45 Cr
- Free Cash Flow (FCF): ₹-42 Cr
- CFO/PAT Ratio: 74% (adequate)
What is Paras Defence and Space Technologies Ltd's dividend yield?
Paras Defence and Space Technologies Ltd's current dividend yield is 0.03%.
- Dividend Yield: 0.03%
- Current Price: ₹867
Who holds Paras Defence and Space Technologies Ltd shares — promoters, FII, DII?
Paras Defence and Space Technologies Ltd's shareholding pattern (Mar 2026)
- Promoters: 53.2%
- FII (Foreign): 5.1%
- DII (Domestic): 1.2%
- Public: 40.5%
Is promoter holding increasing or decreasing in Paras Defence and Space Technologies Ltd?
Paras Defence and Space Technologies Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 53.2% (Mar 2026)
- Previous Quarter: 53.2% (Dec 2025)
- Change: 0.00% (stable)
How long has Paras Defence and Space Technologies Ltd been outperforming Nifty 500?
Paras Defence and Space Technologies Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Paras Defence and Space Technologies Ltd a new momentum entry or an established outperformer?
Paras Defence and Space Technologies Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Paras Defence and Space Technologies Ltd?
Paras Defence and Space Technologies Ltd has 2 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Provides revenue visibility for FY27.
- Value Added Product Mix Shift — Optics is a high-value niche with better long-term margin potential.
What are the key risks in Paras Defence and Space Technologies Ltd?
Paras Defence and Space Technologies Ltd has 2 key risks worth monitoring
- [MEDIUM] Rising input costs led to a 343 bps QoQ contraction in operating margins — Rising input costs led to a 343 bps QoQ contraction in operating margins.
- [LOW] One-time gratuity impact of ₹1 — One-time gratuity impact of ₹1.68 crore due to new Labour Code transition.
What is Paras Defence and Space Technologies Ltd's management guidance for growth?
Paras Defence and Space Technologies Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 30%
- OPM guidance: 28.5%
- Capex plan: Not Given for Not Given
- Management tone: cautious
- Milestone: [LOWERED] Order Book Target: ₹1,500 crore → ₹1,100 - ₹1,200 crore
What sector-specific metrics matter most for Paras Defence and Space Technologies Ltd?
Paras Defence and Space Technologies Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: ₹950 crore (YoY Not Given) (QoQ Flat) — Retained order book levels despite revenue execution in Q3.
- Optics & Optronics Revenue: ₹58.4 crore (YoY Not Given) (QoQ 52%) — Strong execution in the optics segment during the quarter.
- Employee Benefit Expenses: ₹13.40 crore (YoY Not Given) (QoQ 21%) — Impacted by ESOP costs and one-time gratuity charges of ₹1.68 crore.
Is Paras Defence and Space Technologies Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Paras Defence and Space Technologies Ltd may be worth studying
- Earnings growing at +21.4% YoY
- Cash flow is positive — CFO ₹45 Cr
What is the investment thesis for Paras Defence and Space Technologies Ltd?
Paras Defence and Space Technologies Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +23.3% YoY
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Rising input costs led to a 343 bps QoQ contraction in operating margins
What is the future outlook for Paras Defence and Space Technologies Ltd?
Paras Defence and Space Technologies Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Rising input costs led to a 343 bps QoQ contraction in operating margins
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.