Paras Defence Trades Ex-Split Today | Stock Split, Q4 Results, Market Sentiment & Investment Outlook Explained
Paras Defence and Space Technologies Ltd. is grabbing investor attention as it trades ex-split on July 4, 2025, following a 1:2 stock split approved by shareholders. The record date for the split was set as July 4, meaning investors who held shares by July 3 were eligible to receive two shares of ₹5 face value each for every one share held with a ₹10 face value.
This move follows an impressive Q4 FY25 performance by Paras Defence, where the company reported a remarkable 97% year-on-year rise in net profit, alongside a notable boost in EBITDA margins. The combination of robust earnings and the announcement of a stock split has drawn considerable attention from both retail and institutional investors, placing the defence stock firmly in the spotlight.
Let’s explore why this stock split matters, what the numbers reveal, what the management has said, and how the market is reacting.
What is a Stock Split and Why Has Paras Defence Done It?
A stock split is a corporate action that increases the number of outstanding shares by dividing each share, without altering the company’s overall market capitalisation. It makes shares more affordable for retail investors, thereby increasing liquidity and market participation.
Split Ratio for Paras Defence:
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1:2 Stock Split: Every 1 share of face value ₹10 is split into 2 shares of face value ₹5.
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Record Date: July 4, 2025
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Ex-Split Date: July 4, 2025 (T+1 applies; investors had to buy by July 3)
Objective of the Split:
In its filing, the company stated:
“The sub-division of 1 equity share of ₹10 into 2 shares of ₹5 is aimed at improving share affordability and enhancing liquidity in the market. This move is expected to encourage wider retail participation.”
Q4 FY25 Earnings Snapshot: Stellar Growth
Paras Defence also reported strong financial results for the fourth quarter of FY25, reinforcing its credentials as a high-growth defence technology company.
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Net Profit | ₹19.7 crore | ₹10 crore | ▲ 97% |
| Revenue | ₹108.2 crore | ₹79.6 crore | ▲ 35.8% |
| EBITDA | ₹28.3 crore | ₹3.4 crore | ▲ 732% |
| EBITDA Margin | 26.2% | 15.6% | ▲ 10.6% pts |
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Margins expanded impressively due to operational efficiencies and higher-margin contracts.
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Net profit almost doubled, indicating healthy order execution and control over costs.
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Revenue growth of nearly 36% underscores strong demand in the defence sector, especially as India ramps up indigenous military production.
Management Commentary
Though no new official commentary has been published post-split, earlier statements reflect a strategic vision from Paras Defence’s leadership.
Chairman and Managing Director Shri Anand Subramanian had remarked during FY25 investor interaction:
“Our core focus continues to be innovation in defence technologies, strengthening R&D, and executing high-value contracts. The stock split aims to bring more retail investors into our journey as we expand into international markets and new categories.”
The management is also bullish on:
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Electro-optics and drone technology
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AI-based military systems
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Export potential, especially with India’s growing global defence partnerships.
Sectoral Tailwind: India–US Defence Pact
The timing of the stock split couldn’t be better. On July 3, media reports confirmed that India and the US are set to sign a 10-year defence framework agreement, paving the way for:
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Increased tech transfer
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Joint manufacturing of key systems
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Boost to Indian defence stocks like HAL, BEML, and Paras Defence
This is expected to create a multi-year demand runway for companies like Paras, which have specialised manufacturing and R&D capabilities in electromagnetic pulse (EMP) protection, optics, and avionics.
Business Model Overview
Paras Defence operates in high-tech niche segments of defence, aerospace, and space systems. Its business divisions include:
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Defence & Space Optics
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Defence Electronics
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Electromagnetic Pulse (EMP) Protection
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Heavy Engineering
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R&D Services and Additive Manufacturing
The company’s unique positioning in customised, high-entry-barrier tech gives it an edge over competitors.
Fundamental Analysis (Post-Q4 FY25)
| Metric | Value |
|---|---|
| Market Cap (Post-Split) | ~₹6,800 crore |
| EPS (FY25) | ₹19.2 (post-adjusted) |
| P/E Ratio | ~35x (based on FY25 EPS) |
| Debt-to-Equity | 0.11 (very low) |
| ROE | ~14.5% |
| Book Value per Share | ₹88 |
| Promoter Holding | 58.9% |
| Institutional Holding | 13.4% |
| Retail Holding | 27.7% |
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Low debt, high institutional trust, strong promoter skin in the game.
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Diversified tech across India’s defence & space push.
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Upcoming capex in UAV and drone manufacturing.
Technical Analysis (As of July 5, 2025)
| Indicator | Observation |
|---|---|
| CMP (Post-Split) | ₹677 (adjusted from ₹1,354) |
| 50-Day SMA | ₹690 |
| 200-Day SMA | ₹620 |
| RSI | 58 (neutral to bullish) |
| MACD | Positive crossover (bullish) |
| Support Zone | ₹650 – ₹660 |
| Resistance Zone | ₹700 – ₹720 |
How the Market Reacted
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July 3 saw a 4% rally ahead of the record date as investors rushed to qualify for the split.
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Post-split, the stock may see volatility due to profit-booking, but any dips could be used to accumulate, especially by retail investors.
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Volumes have risen substantially, a sign of increased market participation post-split.
Should You Invest in Paras Defence Now?
Reasons to Stay Bullish:
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Consistent revenue and profit growth
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Attractive valuation post-split (~35x P/E)
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Huge opportunity in India’s defence indigenisation and export drive
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Low debt, improving margins, and strong institutional confidence
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Enhanced liquidity and affordability due to the stock split
Cautions:
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Defence sector stocks can be lumpy due to order timing
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High R&D means cash flow can fluctuate
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Any delays in Indo-US agreements or DRDO clearances may impact sentiment
Conclusion: Long-Term Outlook Remains Solid
The Paras Defence stock split is more than just a cosmetic change—it marks a strategic push to widen retail participation, improve liquidity, and prepare for next-stage growth. Coupled with outstanding Q4 numbers and macro-level defence sector tailwinds, the stock stands on strong fundamental and technical footing.
Investors should use any post-split volatility as a long-term buy-on-dips opportunity, especially with India’s defence exports and collaborations expected to rise sharply over the next few years.
Author’s Note:
Paras Defence is a shining example of a Make-in-India success story, rooted in innovation and global ambition. The stock split, alongside healthy earnings, positions it well to attract a new class of investors. While short-term volatility is possible, its long-term trajectory looks robust. As always, investors should match their risk appetite and consult certified advisors before investing.
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