Paras Defence Posts Robust Annual Growth Despite Quarterly Slowdown
Paras Defence reported strong year-on-year growth in Q1 FY27, though revenue and profit declined sharply from the previous quarter.
Paras Defence's Q1 FY27 results show a 37% revenue and 45% profit surge compared to last year. However, a sequential decline from Q4 FY26 highlights the company's typical quarterly volatility.
Paras Defence and Space Technologies delivered a mixed set of numbers for the first quarter of FY27. While the company posted robust growth compared to the same period last year, it saw a significant sequential decline from a strong fourth quarter, a pattern common in its project-driven business.
The defence equipment maker's revenue for the quarter ended June 2026 stood at ₹127.91 crore, a healthy 37.3% increase year-on-year. Profit after tax grew even faster, rising 45.3% to ₹20.74 crore. This pushed the net profit margin up by 90 basis points to 16.2%, indicating improved profitability on an annual basis. However, compared to the preceding March 2026 quarter, both revenue and profit fell sharply by 25.3% and 46.7%, respectively, with the profit margin contracting from 22.7%.
A look at the last five quarters shows the inherent volatility in Paras Defence's performance, with Q4 typically being a strong quarter for execution and revenue recognition.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 127.91YoY +37% | 171.31 | 93.19 |
| Profit (₹ Cr) | 20.74YoY +45% | 38.88 | 14.27 |
| Net Profit Margin (%) | 16.2YoY +5.9% | 22.7 | 15.3 |
Key Points
- The trailing twelve-month (TTM) performance remains solid, with revenue at ₹511.29 crore, profit at ₹95.93 crore, and a net profit margin of 18.8%.
- The company maintains a strong balance sheet with minimal debt, reflected in a debt-to-equity ratio of just 0.04.
- The stock has delivered exceptional returns, nearly doubling over the past year, and now trades at a P/E of 30.4, which is at a significant discount to the industry average of 49.2.
The key question for investors is whether the company can sustain its annual growth trajectory and smooth out the pronounced quarterly swings in the coming fiscal year.
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· PARAS
(BSE)
ISIN: INE045601023
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