Paras Defence and Space Technologies has reported a remarkable financial performance for the fourth quarter of fiscal year 2025, with significant growth in both revenue and profitability. The company has also announced a stock split, signaling confidence in its future prospects.

Q4 FY25 Financial Highlights

Paras Defence showcased impressive growth in its Q4 FY25 results:

The company's net profit nearly doubled to ₹19.70 crore in Q4 FY25, compared to ₹10.00 crore in the same quarter of the previous year, marking a substantial 97% year-on-year increase. Revenue also saw significant growth, rising by 36% to ₹108.20 crore from ₹79.70 crore in Q4 FY24.

Improved Operational Efficiency

Paras Defence demonstrated enhanced operational efficiency, with its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surging to ₹28.30 crore, a 96.5% increase from ₹14.40 crore in the corresponding quarter of the previous year. The EBITDA margin expanded significantly to 26.20%, up from 18.10% in Q4 FY24, indicating improved profitability and operational performance.

Stock Split Announcement

In a move that could potentially enhance stock liquidity and make shares more accessible to a broader range of investors, the board of Paras Defence has approved a 1:2 stock split. This means that each existing share will be divided into two shares, effectively doubling the number of outstanding shares while halving the price per share.

Strategic Partnership for Drone Technology

Paras Defence has recently signed a Memorandum of Understanding (MoU) with Israel's MicroCon Vision, focusing on drone camera systems. This strategic partnership aligns with the company's efforts to enhance its technological capabilities in the defense and aerospace sectors.

Financial Performance Analysis

The company's financial data reveals consistent growth over the past few years:

• Revenue Growth: Annual revenue increased from ₹222.40 crore in FY23 to ₹253.50 crore in FY24, representing a 13.98% year-on-year growth.
• Profitability: Despite the strong Q4 performance, the full-year net profit for FY24 stood at ₹30.00 crore, showing a slight decrease from ₹35.90 crore in FY23. However, this still represents significant growth compared to ₹19.70 crore in FY20.
• Operational Efficiency: The company maintained a healthy operating profit margin of 20.14% in FY24, although this was lower than the 25.51% recorded in FY23.

Paras Defence and Space Technologies' strong Q4 performance, coupled with its strategic initiatives like the MoU with MicroCon Vision and the stock split announcement, positions the company for potential future growth in the defense and aerospace sectors. Investors and market watchers will likely keep a close eye on how these developments translate into long-term value creation for the company.

Paras Defence and Space Technologies Limited , a key player in India's defence and space sector, has reported impressive financial results for the fourth quarter of fiscal year 2025, along with several significant corporate announcements.

Strong Financial Performance

Q4 Highlights

• Consolidated net profit increased by 117% year-over-year, reaching ₹20.80 crore
• Revenue rose 36% to ₹108.20 crore, up from ₹79.70 crore in the same quarter last year
• EBITDA margin expanded significantly to 25.80% from 15.40% in the previous year

Full Fiscal Year 2025

• Consolidated revenue from operations: ₹3,646.60 crore (up from ₹2,535.00 crore in FY2024)
• Profit before tax: ₹836.10 crore (more than doubled from ₹404.70 crore in FY2024)

Corporate Actions

Stock Split and Dividend

• Board approved a 1:2 stock split
  • Each existing share (face value ₹10) to be divided into two shares (face value ₹5)
  • Record date to be announced after shareholder approval via postal ballot
• Recommended final dividend of ₹0.50 per equity share (post-split) for FY2025, subject to shareholder approval

Strategic Divestments

1. Divested wholly-owned subsidiary, Paras Green UAV Private Limited (sale agreement executed on March 27, 2025)
2. Entered proposed sale agreement for 58.02% stake in Ayatti Innovative Private Limited

Qualified Institutional Placement (QIP)

• Successfully raised funds through QIP
• Allotted 12,93,604 equity shares at a premium of ₹1,035 per share
• Total funds raised: ₹1,351.80 crore
• Funds earmarked for QIP-related expenses, working capital requirements, and general corporate purposes

Segment Performance (FY2025)

Outlook

With a robust order book, strategic initiatives, and strong financial performance, Paras Defence and Space Technologies Limited appears well-positioned for continued growth in the defence and space sectors. The stock split and dividend announcement may also generate increased interest from retail investors.

Note: Investors are advised to conduct their own research and consult financial advisors before making investment decisions.