The key reasons why Indian defence companies are in focus:
a. Record defence exports
In FY2024, India exported ₹21,083 crore worth of defence equipment which was 32.5% higher than FY2023. The demand now increases for drones, radar systems, and electronic equipment due to which estimating the export target of $5 billion by 2025.
b. Make-in-India push:
Through Atmanirbhar Bharat and Defence Acquisition Procedure (DAP) 2020 schemes the government of India has promoted indigenous production aggressively. This revolutionary step played as an opportunity for domestic defence players such as BEL, GRSE, Paras Defence etc.
c. Geopolitical tensions
Due to ongoing Geopolitical tensions and border concerns, Indian Government focus on self-reliance in critical defence technologies.
This defence stock surged ~10% today because it has received a remarkable export order from France and its split news. Both the positive news made the stock bullish in such a way that the stock hit upper circuit.
The Price Surge: Reasons
Paras defence & Space Technologies Ltd showed a sharp intraday hike of ~10% with a today’s high is ₹ 933.60 and 933.50 in both NSE and BSE respectively. This sudden surge was driven by two key developments:
a. A massive ₹142.31 crore order from DRDO’s CHESS lab/Key Catalysts Behind the Move
As India is now trying to develop indigenously equipment’s to became self-reliant in defence sector. This makes a key breakthrough for all defence sector company. Paras Defence acquired a contract to develop a Laser Source Module and integrate it with a integrate it with a Beam Control System (BCS) on a mobile platform. This Beam Control System (BCS) is a part of high-power laser which is furnished toward anti-drone and anti-missile defence.
b. ₹22.21 crore anti‑drone systems order from France
Paras Anti-Drone Technologies, a Paras defence’s subsidiary secured a Letter of Intent from France CERBAIR. Paras Anti‑Drone Technologies has to supply 30 units of its advanced CHIMERA200 counter-UAV system. The total estimation of this total contract is approximately ₹22.21 crore (€2.2 million). The Indian made counter-UAV system has done first major defence export deals which built confidence in world on Indian made defence equipment.
The CHIMERA 200 is a jamming system used for identifying and neutralizing drone and swarm threats. It covers wideband area such as 400 MHz to 6 GHz. This portable RF-based detector acts in both omnidirectional and directional.
Imminent 1-for-2 stock split
Paras Defence & Space Technologies recently announced a stock split in a 1:2 ratio. The record date is today that is 4th July 2025.This 1:2 ratio defines each existing equity share with a face value of ₹10 will be split into two shares of ₹5 each and then the stock is now trading at the adjusted face value with ~10% upper circuit.
Paras defence System Ltd and FIIs holdings
The company specializes like anti-drone systems, space optics, and radar subsystems due to which the company has benefited from government and export orders. Global funds are adding Paras Defence to their small-cap portfolios. Hence, FIIs holding is constantly increasing in last three years. Accordingly, in last twelve months the stock price has changed to more than double.