Paras Defence shares rally 10% on inking pact with Northstar to supply air-to-air refueling systems

The defence stock zoomed as it inked a pact with Bandak Aviation Inc. DBA Northstar, USA (Northstar) for supplying air-to-air refueling systems and accessories to the Indian Armed Forces.

At around 2:25 PM, the stock was trading 6.91% higher at ₹754.70 per equity share.

The scrip has advanced more than 13% in the past week and 18% over the month. On a year-to-date basis, it has gained 11%.

While the stock hit a 52-week high of ₹972.50 on May 19, 2025, it touched a year’s low of ₹491 apiece on April 15, 2025.

Agreement with Northstar

In a regulatory filing dated April 15, the firm said that it signed an agreement with Northstar “to supply and support Northstar products such as air-to-air refueling systems & accessories along with associated services for the Indian Armed Forces.”

Under the terms of the decade-long agreement, both companies will collaborate exclusively with each other to develop facilities and depot-level capability to sell and support Northstar products and services to the Indian Armed Forces.

Paras Defence also clarified that it doesn’t have any shareholding in Northstar or its group companies.

As per the filing, Northstar is a leading company with extensive capabilities and relationships related to designing, developing, manufacturing, enhancing, and provisioning its aerial (air-to-air) refueling product line for various airborne platforms.

Recent developments

In a separate filing dated March 9, the defence equipment maker stated that it secured a nearly ₹80.28 crore order from the Defence Research & Development Organisation (DRDO) to develop high-precision air defence optical systems.

As part of the deal, Paras Defence will develop and supply high-precision optical systems for air defence applications to the Ministry of Defence’s DRDO. The filing also showed that the order update is expected to be executed within 18 months from the date of the supply order.

On March 2, the firm informed the exchanges about the incorporation of its new subsidiary named Paras Semiconductors Pvt Ltd.

“In continuation to our intimation dated January 19, 2026 and pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), we are pleased to inform that a subsidiary company of Paras Defence and Space Technologies Limited (PARAS) in the name of “Paras Semiconductors Private Limited” (Subsidiary) has been incorporated on February 27, 2026,” it said.

The subsidiary was incorporated in India to set up state-of-the-art, advanced heterogeneous packaging and 3D packaging OSAT (Outsourced Semiconductor Assembly and Testing). Furthermore, it will focus on artificial intelligence (AI), high-performance computing (HPC), networking, and data center applications, the defence company noted.

Paras Defence and Space Technologies has a total market capitalisation of ₹6,098.85 crore as of April 15, 2026, according to data on the NSE.