Shares of Paras Defence & Space Technologies experienced a dramatic turnaround on Wednesday, soaring 11% to ₹1,230.50 after trading lower in previous sessions. According to latest market data, the stock touched an intraday high of ₹1,244.00 and low of ₹1,205.90, marking a significant recovery from recent declines. The stock has delivered a 78% return over the past year from the beginning of 2026, demonstrating strong long-term investor confidence. As per NSE data, the company maintains a total market capitalisation of ₹9,831.65 crore as of July 22, 2026. The market reaction reflects renewed investor confidence following the company's strategic partnership announcements and recent financial performance improvements.
The company announced plans to invest around ₹6,200 crore ($643.79 million) in a greenfield semiconductor packaging facility in Madhya Pradesh. As reported by Business Standard, Paras Semiconductors Pvt Ltd, the company's subsidiary, has signed a memorandum of understanding (MoU) with the Department of Science and Technology, acting on behalf of the Madhya Pradesh State Electronics Development Corporation (MPSeDC). The facility will focus on advanced IC packaging operations in the Indore-Ujjain region, working on cutting-edge technology including 3D chip integration, hybrid bonding, and chiplet assembly. The project is expected to generate over 2,500 direct employment opportunities and represents a massive strategic shift from the company's traditional defense electronics focus. Under the agreement, the Madhya Pradesh government has allotted 50 acres of land on the Ujjain-Indore Corridor for the proposed facility. The facility will leverage advanced semiconductor manufacturing and packaging technologies to produce semiconductor devices for sensor technologies, optical and optronic systems, and other strategic applications, with potential to expand into AI chips and other advanced semiconductor technologies.
The proposed facility will undertake advanced semiconductor packaging operations including 3D heterogeneous integration, 2.5D/3D advanced packaging, hybrid bonding, ultra-high-density fan-out packaging, chiplet integration, wafer bumping, flip-chip assembly, testing and reliability. As per the company's exchange filing reported by CNBC TV18, the project will be developed through collaboration between Paras Defence and MPSeDC by leveraging expertise and resources of both entities. The MoU establishes a framework for integrating their respective expertise and resources to collaboratively facilitate the establishment of the unit. The facility will execute advanced processes including hybrid bonding, wafer bumping, flip-chip assembly, and 3D heterogeneous integration, positioning the company to move beyond generic assembly to high-margin segments.
The investment is expected to support India's efforts to build domestic semiconductor packaging and testing capabilities under the India Semiconductor Mission. As reported by CNBC TV18, the announcement comes days after the Union Cabinet approved the ₹1.27 lakh crore India Semiconductor Mission (ISM 2.0), a six-year programme aimed at deepening the country's semiconductor ecosystem. The revamped scheme focuses on supporting the broader chip supply chain while offering capital incentives of up to 40% for semiconductor fabrication plants and 35% for advanced packaging facilities. The move aligns with India's broader semiconductor ambitions, with local entities partnering with state agencies to establish OSAT and packaging hubs, allowing companies to cater to defense, aerospace, and advanced computing fields directly within domestic boundaries. The initiative builds on Paras Defence's expertise in optics and optronics and marks the group's strategic expansion into critical semiconductor technologies in line with India's semiconductor manufacturing ambitions.
According to latest financial data, Paras Defence reported net profit of ₹34 crore for Q4 FY26, representing a skyrocketing 89% year-on-year growth from ₹18 crore in the previous year. Revenue from operations jumped approximately 58% YoY to ₹171 crore compared to ₹108 crore in the corresponding quarter last year. On May 13, 2026, the company also secured a contract from Bharat Electronics Limited (BEL) for electro-optics systems valued at approximately ₹52.82 crore, to be completed by September 2027. The company declared a dividend of ₹1 per share for Q4 FY26, demonstrating strong profitability metrics. The company's net income increased 61% to ₹180 crore in the reporting quarter from ₹112 crore YoY, while operating profit (EBITDA) surged 52% to ₹42 crore as against ₹28 crore in the corresponding period last year. However, the EBITDA margin contracted marginally to 24.56% in contrast to 25.65% in the year-ago period. The stock maintains a price-to-earnings (PE) ratio of 118.52 and price-to-book (PB) ratio of 84.60 as of July 22, 2026, with shares trading at ₹1,230.50. In the latest trading session, the stock rose 0.70% to ₹1,224.05 on the BSE, reflecting continued investor interest in the semiconductor expansion plans.
