Paras Defence's stock jumped about 4% on Friday, reaching ₹698.20 per share, after the company announced it will sell its majority stake in subsidiary Ayatti Innovative.
Divestment Details
Paras Defence plans to divest its 58.02% equity stake in Ayatti Innovative Private Limited, which amounts to 1,520,000 shares with a face value of ₹10 each. The company expects the sale to be completed by December 31, 2025, pending the completion of due‑diligence by prospective buyers. Once the transaction closes, Ayatti Innovative will no longer be a Paras Defence subsidiary.
Q2 2025 Financial Highlights
- Net profit: Up 50% year‑on‑year to ₹21 crore (from ₹14 crore).
- Revenue: Rose 21.8% YoY to ₹106 crore, driven by optics, defence electronics and space engineering.
- EBITDA: Increased 32% YoY to ₹30 crore, reflecting better operational efficiency and cost control.
Share Price Movement
The stock opened at ₹674 on Friday, up from the previous close of ₹670.90. Over the past five trading sessions, Paras Defence has risen roughly 11.3%. However, it remains volatile in the short term, having fallen 13.6% over the last six months while climbing 41% in the past year. Over the last five years, the stock has delivered a remarkable 184% total return. Its 52‑week high is ₹971.80 (May 19) and the low is ₹401 (April 4).
What It Means for Investors
- Expect short‑term price swings as the divestment process unfolds.
- The strong Q2 earnings suggest solid underlying business performance.
- Long‑term investors may view the sale as a move to streamline the company’s focus.
Remember, this is perspective, not a prediction. Do your own research and consider consulting a financial advisor before making any investment decisions.