Paras Defence Q3 Profit Falls To ₹195 Crore, Revenue Slips To ₹1,008 Crore; Still Up 23% YoY

Mumbai: Paras Defence’s Q3 FY26 standalone revenue stood at Rupees 1,008.3 crore, down from Rupees 1,027.2 crore in Q2, but significantly higher than Rupees 819.8 crore in Q3 FY25. Net profit came in at Rupees 195.3 crore versus Rupees 222.6 crore in Q2 and Rupees 165.7 crore a year ago. The YoY jump was driven by robust execution in the optics and optronics segment, although sequentially, rising input costs and elevated employee benefit expenses—impacted by ESOP costs and one-time gratuity charges—trimmed profitability.

Sequential growth moderates on higher costs

Total expenses rose 2.5 percent QoQ to Rupees 780.3 crore, primarily due to a sharp 65 percent increase in material consumption from Rupees 364.8 crore in Q2 to Rupees 603.1 crore in Q3. Employee expenses rose to Rupees 122.7 crore, reflecting Rupees 33 lakh in share-based payments and a one-time Rupees 168 lakh gratuity provision under the new Labour Code. Finance costs dropped to Rupees 2.8 crore from Rupees 6.4 crore in Q2, aiding margin support. However, the EBITDA margin compressed sequentially due to a shift in revenue mix and cost absorption dynamics.

Management insights and performance drivers

While no direct commentary from management was included, the results highlight strong contributions from the optics and optronic systems vertical, which generated Rupees 584 crore in segmental revenue in Q3, up 52 percent QoQ. EPS stood at Rupees 2.43 in Q3 compared to Rupees 2.76 in Q2 and Rupees 2.06 in Q3 FY25. The company also approved incorporation of a new subsidiary—Paras Avionics Pvt Ltd—to target avionic applications and aerospace platforms, aligning with its strategic expansion focus.

Nine-month performance and outlook

For the nine months ended December 2025, Paras Defence reported Rupees 2,909 crore in revenue and Rupees 572.2 crore in net profit, reflecting a YoY growth of 19.4 percent and 19.1 percent, respectively. The cumulative performance underscores the firm’s consistent demand across defence verticals. Segment-wise, optics and optronic systems remained the top contributor. With the order book robust and margin levers in place, the company remains positioned for stable performance in the defence technology domain.

Disclaimer: This report is based on publicly disclosed financial results by Paras Defence. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.   

Published on: Friday, January 23, 2026, 02:40 PM IST