Paras Defence and Space Technologies Limited reported robust financial growth for the fiscal year ended March 31, 2026 (FY26), with consolidated revenue rising 31% to ₹476.57 crore from ₹364.66 crore in FY25. Consolidated EBITDA increased to ₹120.46 crore, while Profit After Tax (PAT) surged 45% to ₹89.46 crore, up from ₹61.49 crore in the prior year. The company closed FY26 with an order book of ₹986 crore, providing visibility for future execution.

The Board of Directors has recommended a final dividend of ₹1 per equity share of face value ₹5 each. The dividend is payable to shareholders on record as of August 28, 2026, subject to approval at the 17th Annual General Meeting (AGM) scheduled for September 11, 2026.

Related Party Transaction Approvals

The company is seeking shareholder approval for material related-party transactions (RPTs) under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The aggregate value of these proposed transactions stands at ₹600 crore, split between its associate company and subsidiary.

Transactions with Controp-Paras Technologies Private Limited

Paras Defence proposes an omnibus approval limit of ₹450 crore for transactions with Controp-Paras Technologies Private Limited, an associate company in which Paras Defence holds a 30% stake. This limit covers the period from the current AGM until the next AGM. The primary driver is an order received by Controp-Paras from Larsen & Toubro Limited (L&T) for Electro-Optics Systems for their CIWS Program, with Paras Defence executing the Indian Content portion valued at approximately ₹293 crore.

The proposed limit includes:

• Supply of goods, services, materials, and technologies: ₹293 crore
• Additional sale and purchase transactions: ₹110 crore
• Other related-party transactions (loans, guarantees, investments): ₹47 crore

Transactions with Paras Anti-Drone Technologies Private Limited

The company also seeks approval for an omnibus limit of ₹150 crore for transactions with its subsidiary, Paras Anti-Drone Technologies Private Limited (55% stake). These transactions support operational continuity and working capital requirements for defense and drone project execution.

Key components include:

• Loans/Inter-Corporate Deposits (ICDs): ₹47.04 crore
• Corporate Guarantees: ₹35.35 crore
• Purchase of Goods/Services: ₹26.50 crore
• Sale of Goods/Services: ₹16.67 crore
• Financial Guarantees: ₹15.00 crore

Both sets of transactions have been reviewed and approved by the Audit Committee, comprising a majority of Independent Directors. The Board asserts that these transactions are conducted at arm’s length and in the ordinary course of business.

What the Numbers Show

The scale of the proposed related-party transactions is substantial relative to the company’s size. The ₹450 crore limit for Controp-Paras represents approximately 94% of Paras Defence’s annual consolidated turnover of ₹476.57 crore in FY26. This high concentration indicates that the company’s near-term revenue visibility and operational execution are heavily dependent on the successful delivery of the L&T CIWS program through its associate. Similarly, the ₹150 crore limit for the subsidiary accounts for roughly 31.47% of the listed entity’s turnover, reflecting significant intra-group financial support and trade flows aimed at consolidating growth within the defense technology vertical.

AGM Details

The 17th AGM will be held via Video Conferencing or Other Audio-Visual Means (VC/OAVM). Members holding shares as of September 4, 2026, are eligible to vote. Remote e-voting will be available from September 8, 2026, to September 10, 2026. The meeting agenda also includes the re-appointment of Mrs. Shilpa Amit Mahajan as a Whole-Time Director and the ratification of remuneration for cost auditors M/s. Dinesh Jain & Company.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE045601023/fd4a61b9-1bdf-442f-be5f-079f25f0e9d1.pdf

Paras Defence and Space Technologies Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026 (FY26) to the Bombay Stock Exchange and the National Stock Exchange of India Limited on August 18, 2026. The filing, signed by Company Secretary Minal Bhate, covers standalone operations and outlines the company’s adherence to the National Guidelines on Responsible Business Conduct (NGRBC).

Operational and Financial Context

The report provides key financial figures relevant to Corporate Social Responsibility (CSR) compliance under Section 135 of the Companies Act, 2013. Paras Defence reported a turnover of ₹4,165.4 crore and a net worth of ₹6,877.6 crore for the period. The company operates two plants and five offices across India, serving customers in 18 states and union territories. Exports contributed 15.30% of the total turnover.

The primary business activities account for 90% of turnover, split between Defence Engineering (52%) and Optics and Optronics Systems (48%). Key clients include government entities such as the Defence Research and Development Organization (DRDO), Indian Space Research Organization (ISRO), and Defence Public Sector Undertakings (DPSUs), alongside private firms like L&T, BEL, and HAL.

Workforce and Safety Metrics

As of the end of FY26, the company employed 358 permanent employees and engaged 259 permanent workers. Women constituted 25.41% of the employee base and 9.65% of the worker base. The board of directors includes two women, representing 33.33% of total directors.

Safety performance remained strong with zero recordable incidents. The Lost Time Injury Frequency Rate (LTIFR) was 0 for both employees and workers in FY26, consistent with FY25. All manufacturing plants hold ISO 45001:2018 certification for occupational health and safety management.

Sustainability and Governance

Paras Defence identified climate change as a material risk, citing potential impacts on supply chain continuity and operational efficiency. Conversely, the company views corporate governance and the ‘Make in India’ initiative as opportunities, leveraging domestic design and assembly capabilities.

The company disclosed that 0.5% of R&D investments were directed toward technologies improving environmental and social impacts, while 99.5% of capital expenditure (capex) served this purpose. Over 60% of inputs were sourced sustainably, supported by a Supplier Code of Conduct. The firm does not practice Extended Producer Responsibility (EPR) as its defence products are not reclaimed from customers.

Governance structures include a Board-approved Code of Conduct, Anti-Bribery Policy, and Whistle Blower Policy. The CSR Committee oversees sustainability matters, meeting at least twice annually. No fines, penalties, or regulatory actions were reported during the year.