Small-cap defence stock: Paras Defence share price surged nearly 1% to ₹717.50 in Wednesday's trading session after the company announced that it has signed an agreement with DRDO.
The small-cap defence stock has been under pressure lately as it has remained flat in last one month and has descended 11.59% in six months. However, the defence stock delivered nearly 39% returns in last one year and 191% since its listing.
Paras Defence agreement with DRDO
In an exchange filing on November 26, Paras Defence said that it has signed a technology transfer agreement with DRDO for the Driver Night Sight (DNS) system used in T-90 tanks.
This deal allows the company to manufacture and work with the night-vision technology within India. The company further informed that the agreement has been finalised with DRDO, which operates under the Ministry of Defence.
The DNS system improves visibility for tank drivers in low-light and night conditions, making it an essential technology for armoured vehicle movement and operational readiness.
On Monday, the company announced that it had signed an MoU with Inter- University Accelerator Centre (IUAC). Inter- University Accelerator Centre is an autonomous Institute under the University Grants Commission (UGC), Ministry of Education (MoE), Government of India (GOI), and carries out particle accelerator based basic research and development.
According to the exchange filing, both the companies will combine their respective capabilities in order to develop commercial- grade MRI magnet system for indigenous manufacturing in the country to make India a Self-Reliant in superconducting MRI Magnet technology, thus nurturing Aatma Nirbhar Bharat.
Paras Defence Q2 results 2025
Paras Defence delivered a strong performance in the September quarter, posting a 50% year-on-year jump in net profit to ₹21 crore, up from ₹14 crore.
Revenue rose 21.8% YoY to ₹106 crore, driven by solid execution across its optics, defence electronics, and space engineering segments.
EBITDA increased 32% YoY to ₹30 crore from ₹22.7 crore, indicating improved operational efficiency and tighter cost management.
The EBITDA margin also strengthened, rising to 28.3% from 26.1% a year earlier, highlighting enhanced profitability.
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