Paras Defence & Space Technologies has officially launched its semiconductor subsidiary, marking a strategic entry into the semiconductor segment with advanced packaging technologies for defence and strategic electronics. The company announced the establishment of "Paras Semiconductors Private Limited" following board approval, with plans to set up an advanced heterogeneous and 3D packaging OSAT facility.

Subsidiary Structure and Investment

The semiconductor subsidiary has been incorporated with a focused capital structure targeting advanced packaging operations. The facility will cater to semiconductor devices for optical and optronic systems used in defence and security applications.

Technology Focus and Applications

The subsidiary will concentrate on state-of-the-art advanced heterogeneous packaging and 3D packaging OSAT (Outsourced Semiconductor Assembly and Testing) operations. The facility targets high-growth technology segments including defence electronics, artificial intelligence, and high-performance computing applications.

Strategic Vision and Management Commentary

Munjal Sharad Shah, Managing Director of Paras Defence and Space Technologies, emphasized the strategic importance of the semiconductor sector for defence and national security. "Advanced packaging plays a critical role in performance, reliability and supply chain control for sensitive applications," Shah stated.

The initiative enables participation in India's evolving semiconductor applications within the defence ecosystem, with emphasis on chiplet integration and advanced system-in-package (SiP) technologies. The company aims to build capability that complements its existing strength in defence electronics and aligns with India's push for a self-reliant semiconductor ecosystem.

Recent Financial Performance

Paras Defence reported strong financial results with net profit rising 50.00% year-on-year to ₹21.00 crore from ₹14.00 crore. Revenue grew 21.80% to ₹106.00 crore, supported by healthy execution across optics, defence electronics, and space engineering divisions.

Shares of Paras Defence and Space Technologies were trading at ₹656.35, down ₹5.90 or 0.89% during market hours.

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.