Paras Defence Targets 30-40% FY26 Revenue Growth on Strong Q4 Execution
Paras Defence and Space Technologies expects to achieve 30-40% revenue growth for FY26, projecting revenues in the ₹450-500 crore range with strong Q4 execution. The company reported Q3FY26 revenue of ₹106 crore and net profit of ₹17 crore with 24.65% margins. Management anticipates the order book to grow from current ₹900-950 crore to ₹1,100-1,200 crore by year-end, driven by demand for optics, laser systems, ground-to-space telescopes and defence electronics. Margins are expected to improve to 27-30% at EBITDA level and 18-20% at PAT level.
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Paras Defence & Space Technologies is positioning itself for a stronger finish to FY26, with management expressing confidence in achieving 30-40% revenue growth for the full year. The company expects the March quarter to contribute the highest share of revenues, following a pattern common across defence manufacturers where Q4 typically delivers peak execution.
Financial Performance and Projections
For the October-December quarter (Q3FY26), the company reported solid performance metrics:
| Metric: | Q3FY26 Performance |
|---|---|
| Revenue: | ₹106 crore |
| Net Profit: | ₹17 crore |
| Margins: | 24.65% |
Despite achieving 19% revenue growth in the first nine months, Amit Mahajan, Director at Paras Defence and Space Technologies, remains confident about meeting the full-year guidance. The company projects FY26 revenues to close in the ₹450-500 crore range, representing the targeted 30-40% growth.
Order Book Outlook
The company currently maintains an order book of ₹900-950 crore and expects significant order inflows over the next three to four months. Management projects the order book to reach ₹1,100-1,200 crore by the end of FY26, providing a strong foundation for future growth.
| Parameter: | Current Status | Year-end Projection |
|---|---|---|
| Current Order Book: | ₹900-950 crore | ₹1,100-1,200 crore |
| Revenue Guidance: | ₹450-500 crore | 30-40% growth |
| Expected Margins (EBITDA): | 24.65% (Q3) | 27-30% |
| Expected Margins (PAT): | - | 18-20% |
Growth Drivers and Market Demand
The company anticipates strong order inflows across multiple segments in the coming months:
- Optics and optical systems - Major contributor to expected order book growth
- Laser-based solutions - High-value execution opportunities
- Ground-to-space telescopes - Specialized defence and space applications
- Defence electronics - Strong inflow expected on this segment
- Optical components - Supporting the broader optics portfolio
Margin Expansion Strategy
Management expects margins to improve from current levels, targeting 27-30% at EBITDA level and 18-20% at PAT level for the full year. The anticipated margin expansion is supported by high-value order execution and improved operational efficiency in defence and space technology segments.
Strategic Positioning
With order inflows expected to accelerate into FY27 and margins set to improve through high-value execution, Paras Defence remains optimistic about sustaining growth while expanding profitability. The company's focus on specialized defence and space technologies positions it well to capitalize on rising demand across its core product segments, particularly in optics, laser systems, and defence electronics.
Historical Stock Returns for Paras Defence Space Tech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.63% | -2.52% | -4.61% | -19.08% | +19.65% | +162.17% |
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