Paras Defence & Space Technologies , a key player in India's defence and space sector, has announced a significant partnership with High Performance Space Structure Systems GmbH (HPS), a German company specializing in space technology. This collaboration marks a strategic move to enhance India's capabilities in advanced space antenna systems.

Partnership Details

The two companies have entered into a teaming agreement focused on the development of Unfurlable/Deployable Antenna Reflector Subsystems for space applications. This cutting-edge technology includes:

• Reflector and arm assembly
• Hold Down and Release Mechanism (HDRM)
• Thermal hardware
• Deployment electronics

HPS brings to the table its extensive expertise in design, manufacturing, integration, and testing of antenna reflector subsystems for space applications. Their experience also extends to solid reflector antennas, lightweight structures, thermal hardware, and nanosatellite equipment.

Exclusive Collaboration

According to the LODR filing, the agreement stipulates that Paras Defence and HPS will collaborate exclusively with each other for the identified products within the Indian region. This exclusivity underscores the strategic importance of the partnership for both companies.

Agreement Terms

Key points of the agreement include:

• Duration: The initial term is set for two years, with the possibility of extension based on mutual consent.
• Scope: The collaboration is specifically for the Indian market, focusing on defence and space projects.
• Exclusivity: Both companies have agreed to work exclusively with each other for the identified products in India.

Corporate Governance Aspects

Paras Defence has clarified several important points regarding the agreement:

• Shareholding: Paras Defence does not hold any shares in HPS or its group companies.
• Related Party Transaction: The agreement does not fall under related party transactions.
• Board Representation: There are no provisions for nominee directors on Paras Defence's board as part of this agreement.

Market Implications

This partnership is poised to strengthen India's position in the global space technology market. By combining Paras Defence's local expertise with HPS's advanced technological capabilities, the collaboration aims to deliver state-of-the-art antenna systems for space applications.

The agreement aligns with India's growing focus on self-reliance in defence and space technologies, potentially opening up new opportunities for domestic production of high-tech space components.

As the space industry continues to evolve rapidly, partnerships like this one between Paras Defence and HPS are likely to play a crucial role in shaping the future of space technology in India and beyond.

Paras Defence & Space Technologies , a key player in defence and space applications, saw its shares plummet 13% in two sessions following the release of its latest quarterly results. The stock closed at Rs 704.70 on Monday, marking a 10% drop in a single day.

Financial Performance

The company reported a significant decline in its financial performance for the quarter:

The consolidated net profit for the quarter dropped 25% to Rs 14.30 crore from Rs 20 crore in the same period last year. Revenue from operations decreased by 14% to Rs 93 crore compared to Rs 108 crore in the corresponding quarter of the previous financial year.

Operational Highlights

• Operating Profit: The company's operating profit declined by 9.13% year-over-year to Rs 21.90 crore.
• Operating Profit Margin: The OPM stood at 23.48%, down from 28.84% in the same quarter last year.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) remained relatively stable at Rs 24.30 crore, compared to Rs 24.70 crore in Q1 FY2025.

Market Performance

Despite the recent decline, Paras Defence shares have shown resilience in the broader market:

• Year-to-date returns: +40%
• 1-year returns: +6%

Company Overview

Paras Defence & Space Technologies operates through two main verticals:

1. Optics & Optronic Systems
2. Defence Engineering

These segments cater to various defence and space applications, positioning the company as a significant player in the sector.

Upcoming Event

The company has scheduled its 16th Annual General Meeting for August 21, 2025, where shareholders will have the opportunity to discuss the company's performance and future strategies.

As Paras Defence & Space Technologies navigates through challenging market conditions, investors will be closely watching how the company adapts its strategies to improve its financial performance in the coming quarters.