Paras Defence Q4 Results: Stock gives up gains, ends lower after FY26 guidance miss

Paras Defence and Space Technologies Ltd saw its stock give up gains and end with losses of 1% on Wednesday, May 13, after its financial year 2026 numbers were below what the management had projected for.

Paras Defence In FY26

Paras Defence saw revenue growth of 30% for the financial year 2026, lower than the 40% to 50% growth projected earlier by the management.

The company's EBITDA margins were down 127 basis points from financial year 2025 to 25%.

Material costs went up to 50% as a percentage of topline, compared to 47% earlier which turned out to be a drag on the company's profitability. The impact of higher material costs were partially offset by stable employee expenses and lower other expenses.

Paras Defence In Q4

Paras Defence reported a 73% year-on-year jump in adjusted net profit for the March quarter to ₹36 crore, while reported net profit jumped 87% to ₹39 crore, aided by an exceptional gain of ₹3 crore related to the divestment of subsidiary Ayatti Innovative Pvt. Ltd.

Revenue from operations increased 58% year-on-year to ₹171 crore from ₹108 crore a year ago. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 51% to ₹43 crore from ₹28 crore in the year-ago quarter.

EBITDA margin, however, contracted 127 basis points year-on-year to 24.9% from 26.1%. Material costs as a percentage of sales rose to 53% from 46% a year ago.

On a sequential basis, revenue rose 61%, while adjusted net profit increased 113%.

Also read: Kirloskar Brothers shares fall 4% after Q4 margin declines despite 11% revenue growth

How Did Paras Defence's Business Segments Fare

Among segments, the company's Defence Engineering business reported strong growth, with revenue rising 48% to ₹277 crore. EBIT margin for the segment expanded to 20% from 10.7% a year ago.

The Optics and Optronics Systems segment reported revenue growth of 12% to ₹199 crore, while EBIT margin for the business declined to 44% from 54% last year.

The company had earlier said it expects its order book to cross a ₹1,000 crore soon and subsequently reach the ₹1,000 crore - 1,500 crore range.

The board also recommended a final dividend of ₹1 per equity share of face value ₹5 each for FY26.

Shares of Paras Defence ended 0.96% lower at ₹793 following the earnings result announcement. The stock has gained over 12% in the last month.