Paras Defence & Space Technologies has provided an update on the proposed divestment of its majority stake in subsidiary Ayatti Innovative Private Limited. The company filed an intimation under Regulation 30 of SEBI regulations on December 26, 2025, extending the expected completion timeline for the transaction.

Updated Transaction Timeline

The aerospace and defence manufacturer has revised its completion timeline for the sale of 58.02% equity stake in Ayatti Innovative Private Limited. The company now expects the transaction to be completed by March 31, 2026, representing an extension from the previously indicated December 31, 2025 deadline.

Due Diligence Process Continues

The company disclosed that the due diligence exercise by prospective buyers is currently underway and is expected to take additional time. This comprehensive evaluation process is being conducted by potential purchasers to assess the subsidiary's financial, legal, and operational aspects before finalizing the transaction.

Financial Impact and Subsidiary Status

Ayatti Innovative Private Limited contributed nil turnover to the consolidated revenue of Paras Defence in the financial year 2023-24. The subsidiary reported a negative net worth of ₹2.55 crores as of March 31, 2024. Upon completion of the proposed transaction, Ayatti will cease to be a subsidiary of the parent company.

Transaction Structure

The company confirmed that the prospective buyers do not belong to the promoter, promoter group, or group companies. The transaction does not fall within the ambit of related party transactions. The final consideration amount has not been finalized as it remains dependent on the completion of the due diligence process.

Paras Defence will provide further intimation to stock exchanges upon execution of the final agreement and receipt of consideration from the buyers.

Paras Defence & Space Technologies , a key player in the defence and space technology sector, has reported strong financial performance and completed a significant corporate governance milestone with overwhelming shareholder support.

Financial Performance Highlights

The company's consolidated financial results for Q2 showcase robust growth across key metrics:

Shareholder Approval for Director Reappointment

The company has successfully concluded its postal ballot process for the reappointment of Mr. Suresh Katyal as Non-Executive Independent Director. The voting results demonstrate strong shareholder confidence:

The postal ballot process was conducted through remote e-voting from November 20 to December 19, 2025, with Mr. Dinesh Kumar Deora serving as the scrutinizer.

Corporate Governance Enhancement

Mr. Suresh Katyal's reappointment as Non-Executive Independent Director for a second five-year term, effective January 5, 2026, reinforces the company's commitment to strong corporate governance. The overwhelming shareholder support reflects confidence in the leadership team's strategic direction.

Business Operations

Paras Defence continues to demonstrate strong operational performance across its key business segments:

• Optics and Optronic Systems
• Defence Engineering

The company's ability to achieve 38% revenue growth and 31% increase in net profit underscores its robust market position in the evolving defence and space technology landscape.