Paras Defence and Space Technologies Limited (NSE:PARAS) disclosed the outcome of its board meeting held on 7 August 2026, approving unaudited standalone and consolidated financial results for Q1 FY27 (quarter ended 30 June 2026), fixing a dividend record date, and approving the divestment of its entire 47.50% stake in associate company Krasny Paras Defence Technologies Private Limited.
Key Highlights
- Standalone revenue from operations for Q1 FY27 stood at Rs 11,808 lakhs, up from Rs 8,741 lakhs in Q1 FY26, with standalone profit for the period at Rs 2,141 lakhs versus Rs 1,543 lakhs a year earlier.
- The board fixed Friday, 28 August 2026 as the record date for a proposed final dividend of Rs 1 per equity share of face value Rs 5 each (20%), subject to shareholder approval at the 17th AGM on 11 September 2026.
- The board approved the divestment of the company's entire 47.50% equity stake in Krasny Paras Defence Technologies Private Limited, comprising 5,22,500 equity shares of face value Rs 10 each, after which Krasny Paras will cease to be an associate.
- Two new subsidiaries, Paras Semiconductors Private Limited and Paras Avionics Private Limited, were incorporated during Q1 FY27, and the company granted 3,13,300 ESOP options across three tranches as of 30 June 2026.
About the Company
Paras Defence and Space Technologies Limited (NSE:PARAS), headquartered in Navi Mumbai, Maharashtra, operates in the Indian defence and space sector. The company designs and manufactures defence optics, heavy engineering components, and space-grade equipment, with facilities in Nerul (Navi Mumbai), Ambernath (Thane), and an R&D centre in Bengaluru.
Announcement in Detail
On a standalone basis, Paras Defence (NSE:PARAS) reported revenue from operations of Rs 11,808 lakhs for the quarter ended 30 June 2026, compared with Rs 8,741 lakhs in the corresponding quarter of the previous year. Profit before tax stood at Rs 2,851 lakhs versus Rs 2,061 lakhs in Q1 FY26. Profit for the period was Rs 2,141 lakhs against Rs 1,543 lakhs a year earlier. Basic and diluted earnings per share (not annualised) were Rs 2.66 for the quarter. The statutory auditor, Chaturvedi and Shah LLP, issued a limited review report with an unmodified opinion.
On corporate actions, the board fixed 28 August 2026 as the record date for the proposed final dividend of Rs 1 per share for FY26, with payment due within 30 days of AGM approval on 11 September 2026. The board also approved material related party transactions with associate Controp-Paras Technologies Private Limited and subsidiary Paras Anti-Drone Technologies Private Limited, and approved re-appointment of Mrs. Shilpa Amit Mahajan (DIN: 01087912) as director, who retires by rotation.
Impact on Investors
Investors will note that the proposed final dividend of Rs 1 per share is subject to shareholder approval at the 17th AGM on 11 September 2026; eligibility is determined by the record date of 28 August 2026. The filing shows standalone profit for Q1 FY27 increased by approximately 38.8% year-on-year on a like-for-like basis, which shareholders will observe reflects both higher revenue and an improved cost structure.
The disclosed divestment of the entire 47.50% stake in Krasny Paras Defence Technologies Private Limited will result in that entity ceasing to be an associate. Investors will note that the consideration amount for this stake sale has not been disclosed in the filing, and the transaction remains at board-approval stage pending any further regulatory or shareholder steps that may apply. The incorporation of two new subsidiaries, Paras Semiconductors and Paras Avionics, changes the group's subsidiary structure, which shareholders will observe may affect future consolidated financials.
Sector / Market Context
India's defence procurement budget has grown steadily, with the Ministry of Defence allocating over Rs 6.21 lakh crore in the Union Budget for FY26, of which a significant portion is directed toward domestic procurement under the Atmanirbhar Bharat initiative. Listed defence manufacturers on Indian exchanges have seen increased order visibility as the government prioritises indigenisation under the Defence Acquisition Procedure framework.