Paras Defence expects exports to double as Middle East conflict boosts demand

Paras Defence and Space Technologies expects its export revenue to at least double this fiscal year as the Middle East conflict and rising geopolitical tensions drive demand for defence equipment, a senior executive told Reuters.

The Mumbai-based company expects exports to rise to Rs 120-130 crore in fiscal 2027, from Rs 50-60 crore last year, Technical and R&D Director Amit Mahajan said. Exports accounted for about 10% of revenue in fiscal 2026.

Paras Defence also expects revenue to rise to Rs 600-650 crore this fiscal year, from Rs 477 crore a year earlier.


Orders from Israel and the UAE have increased so far this fiscal year, while demand from France and Germany has also risen as European countries boost defence spending and diversify supply chains, Mahajan said.

Paras Defence makes optical and electro-optical systems for the defence and space sectors, including infrared lenses, anti-drone equipment and border-surveillance systems.

Its customers include Hindustan Aeronautics and the Defence Research and Development Organisation (DRDO).

India’s defence exports rose 62% to $4.1 billion in fiscal 2026, with explosives accounting for most exports.

Paras is among the few Indian exporters of optics and electro-optics equipment, with state-owned Bharat Electronics its main domestic rival, according to an industry analyst.

Investor interest in India’s defence sector has surged this year. The Nifty India Defence index has gained 27%, while the benchmark Nifty 50 has fallen 7%.

The defence index is up nearly 21% since the Iran war began in late February, as expectations of higher global military spending boost the sector.

(With inputs from Reuters)