Paras Defence lifts operating margin to 29.46% in Q2FY27
Revenue growth outpaced expense growth, while lower interest costs and a reduced tax rate helped net profit rise 47.35% sequentially.
Filed 29 Oct 2026, 13:15 IST · Paras Defence and Space Technologies Ltd (PARAS)
Key takeaways
- Consolidated revenue rose 18.15% QoQ while expenses grew 11.04%, lifting operating margin by 4.51 percentage points.
- Net profit increased 47.35% QoQ to Rs 30.56 cr, helped by a 35.82% fall in interest costs and a 0.85-percentage-point lower tax rate.
- The 29.46% operating margin was 17.38 percentage points above the Industrials median across 61 reported peers.
Price around the results
Revenue growth widened the operating spread
Paras Defence reported consolidated revenue of Rs 151.12 cr in Q2FY27, up 18.15% QoQ. Expenses grew 11.04%, so operating profit rose faster at 39.52% and operating margin expanded 4.51 percentage points to 29.46%. This produced a 47.35% sequential increase in net profit to Rs 30.56 cr.
Lower interest costs added to profit growth
Interest expense fell 35.82% QoQ, supporting the 45.68% increase in profit before tax. The tax rate also declined by 0.85 percentage points to 25.13%, giving net profit an additional lift. Other income contributed 5.44% of pre-tax profit, so the quarter's profit was driven mainly by operations rather than non-operating income.
Margin stayed well above the reported peer median
The 29.46% operating margin was 17.38 percentage points above the 12.08% median for 61 Industrials peers that had reported the same quarter. Sequentially, margin improved from 24.95% in Q1FY27, alongside revenue growth of 18.15% and slower expense growth of 11.04%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹151 cr | ₹128 cr | +18.15% |
| Other income | ₹2 cr | ₹2 cr | +14.43% |
| Expenses | ₹107 cr | ₹96 cr | +11.04% |
| Operating profit | ₹45 cr | ₹32 cr | +39.52% |
| Operating margin (%) | 29.46% | 24.95% | — |
| Interest | ₹1 cr | ₹1 cr | -35.82% |
| Depreciation | ₹5 cr | ₹4 cr | +12.69% |
| Profit before tax | ₹41 cr | ₹28 cr | +45.68% |
| Tax | ₹10 cr | ₹7 cr | +40.93% |
| Net profit | ₹31 cr | ₹21 cr | +47.35% |
| EPS (₹) | ₹3.76 | ₹2.63 | +42.97% |
Operating margin of 29.46% compares with a Industrials sector median of 12.08% across 61 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 29.46% after the 4.51-percentage-point sequential improvement.
- Whether expense growth remains below the 18.15% sequential revenue growth rate.
- Whether the tax rate stays near 25.13% and interest costs remain below Rs 0.86 cr.