Paras Defence and Space Technologies Limited Board of Directors approved the divestment of its entire 47.50% equity stake in associate Krasny Paras Defence Technologies Private Limited on August 07, 2026. The company intends to sell the 5,22,500 equity shares, each with a face value of ₹10, to Krasny Defence Technologies Limited. This strategic move aims to streamline operations as Krasny Paras contributed only ₹0.59 crore (0.12%) to the consolidated turnover in FY25-26. The transaction is expected to be completed by December 31, 2026, after which Krasny Paras will cease to be an associate.

The Board meeting also reviewed Q1FY26 results, showing a 39% year-on-year rise in consolidated net profit to ₹207.4 lakh, driven by a 37% revenue surge to ₹1,279.1 lakh. Shareholders will vote on the final dividend of ₹1 per equity share for FY26 at the Annual General Meeting scheduled for September 11, 2026. The record date for dividend payment is fixed as August 28, 2026. The results were audited by Chaturvedi & Shah LLP under SEBI Listing Regulations 30, 33, and 42.

Divestment Details

The buyer, Krasny Defence Technologies Limited, is not part of the promoter group or related parties. The consideration amount remains unfinalized pending due diligence. Paras Defence will issue further intimation upon signing the sale agreement and receipt of consideration. The net worth of Krasny Paras as of March 31, 2026, was ₹0.63 crore.

Financial Performance

Consolidated revenue from operations rose to ₹1,279.1 lakh in Q1FY26 from ₹931.9 lakh in Q1FY25. Profit before tax increased 44% to ₹280.2 lakh. Standalone revenue grew 35% to ₹1,180.8 lakh, with net profit rising 39% to ₹214.1 lakh. Earnings per share (basic) reached ₹2.63 on a consolidated basis and ₹2.66 standalone.

Strategic Outlook

The divestment reflects a focus on core high-margin segments. Optics and Optronic Systems generated ₹689.0 lakh in revenue with a segment result of ₹264.2 lakh, while Defence Engineering saw results improve to ₹122.0 lakh. The company also incorporated two new subsidiaries: Paras Semiconductors Private Limited and Paras Avionics Private Limited, signaling expansion into advanced technology verticals.

Paras Defence and Space Technologies delivered a notable year-on-year improvement in its latest quarterly financial performance, with growth recorded across revenue, profitability, and operating margins. The consolidated results highlight a consistent upward trajectory in the company's financial metrics compared to the corresponding period of the previous year.

Revenue and Profitability Performance

The company's consolidated revenue for Q1 stood at 1.3B rupees, up from 932M rupees in the same quarter last year, reflecting a significant year-on-year increase. Consolidated net profit rose to 212M rupees from 149M rupees recorded in the year-ago period, underscoring improved bottom-line performance. The following table summarises the key financial metrics:

Operating Margins Expand Year-on-Year

On the operating front, EBITDA for Q1 came in at 319M rupees, compared to 220M rupees in the year-ago quarter, indicating stronger operational efficiency. The EBITDA margin improved to 24.95% from 23.55% on a year-on-year basis, reflecting better cost management and operating leverage. The margin expansion alongside revenue growth suggests that the company has been able to scale its operations while maintaining profitability discipline.