Paras Defence Q2 results: Profit rises 47% YoY to ₹30 crore; optics system revenue gains 94% despite cost pressures

Paras Defence and Space Technologies announced its July to September quarter results for the financial year 2026-27, in which the company recorded strong 47% growth in consolidated net profits, with key support from the company's increase in revenues in the optics and optronic systems segment.

NSE filings showed that Paras Defence’s consolidated net profit (attributable to owners) surged around 47% to ₹30.30 crore in the second quarter of FY27, in comparison to ₹20.64 crore in the corresponding quarter of the previous financial year.

The company’s overall revenue from core operations advanced around 43% year-on-year (YoY) to ₹151 crore in the September quarter, compared with ₹106 crore in the same quarter of the previous year.

Paras Defence’s significant improvement in the optics and optronic systems business segment largely contributed to the Q2 earnings revenue outperformance.

The data showed that the revenues generated from the specific business vertical surged more than 94% YoY to ₹74.65 crore in the September quarter, from earlier ₹38.44 crore levels.

Apart from the optics business, the company’s defence engineering business revenues also gained 13.6% YoY to ₹76.47 crore, in comparison to ₹67.28 crore in the same period a year earlier.

NSE data showed that Paras Defence shares rallied 3.6% to touch an intraday high of ₹1,349.90 apiece on Thursday’s market after the company’s Q2 earnings disclosure, in comparison to ₹1,302.60 apiece at the previous equity market close.

As of the afternoon market hours of 2:46 pm (IST), the company’s stock was trading 3% higher at around ₹1,342 apiece on October 29.

Margin growth in focus

Alongside the revenue gains, the company’s operating profit and margins also improved year-on-year (YoY) despite the nearly 94% rally in the cost of raw materials in the period, resulting from the impact of the supply chain crisis and elevated prices in the market.

With the cost of raw materials like energy and metals trading higher in the global market, these companies spend a fortune on additional raw material costs, which in turn pressures the overall margins in the period.

However, Paras Defence was able to post healthy growth in net profits despite the additional pressure from the raw material costs in the period.

Data showed that the company’s operating profit or earnings before interest, tax, depreciation, and amortisation (EBITDA), advanced nearly 50% YoY to ₹45 crore in Q2 FY27, from ₹30 crore in Q2 FY26,

The company’s EBITDA margins expanded by 138 basis points to 29.46% in the September quarter, from 28.08% in the same period a year earlier, as per the exchange filings.

Stock rises 96% YTD

NSE data showed that Paras Defence shares have delivered more than 189% returns on their investment in the last five years, and over 290% returns to investors in the last three-month period.

On a YTD basis, the stock has risen 96% in 2026 and has gained 1.2% in the last one-month period. The exchange data also showed that the company's shares have risen 11.3% in the last five market sessions.

The company’s market capitalisation (m-cap) was at ₹10,718 crore as of the session on Thursday, October 29.