Paras Defence Targets Twofold Export Growth as Global Military Demand Rises

Indian defence manufacturer Paras Defence and Space Technologies expects its export revenue to at least double in FY 2026-27 as geopolitical tensions and rising military expenditure generate stronger international demand for Indian defence equipment.

The Mumbai-based company expects exports to reach around ₹120–130 crore in FY27, compared with approximately ₹50–60 crore in FY26, Technical and R&D Director Amit Mahajan told Reuters. Exports accounted for roughly 10% of Paras Defence’s revenue during the previous financial year.

The company is also projecting overall revenue of approximately ₹600–650 crore in FY27, up from ₹476.6 crore in the previous year. Paras Defence’s FY26 annual report confirms consolidated revenue of ₹476.57 crore and an order book of about ₹986 crore at the end of the financial year.

Orders Rise From Israel, UAE and Europe

International demand is emerging as an increasingly important growth driver.

According to Mahajan, orders from Israel and the United Arab Emirates have increased during the current financial year. Demand from France and Germany has also strengthened as European governments raise defence expenditure and look to diversify military supply chains.

The trend provides Indian defence companies with an opportunity to move beyond their traditional domestic customer base and establish themselves as specialised suppliers within global defence manufacturing networks.

Paras Defence has not indicated that it is concentrating exclusively on specific countries. Instead, the company is pursuing opportunities across markets where its specialised technologies can compete.

Optics and Optronics at the Centre of Export Push

Paras Defence operates primarily across Optics & Optronic Systems and Defence Engineering, supplying technologically specialised equipment for defence and space applications.

Its products include infrared optics, electro-optical systems, anti-drone technologies, border-surveillance equipment, defence electronics and electromagnetic protection systems.

The company’s own disclosures describe Paras as an Indian manufacturer of indigenously designed and developed defence technologies covering naval systems, armoured platforms, electronic warfare, surveillance and space applications. It also develops optronic periscopes for submarine applications.

Major domestic customers include organisations such as Hindustan Aeronautics Limited and the Defence Research and Development Organisation, while the growing export business gives the company another avenue for expansion.

India’s Defence Export Surge Creates a Bigger Opportunity

Paras Defence’s expansion comes as India’s wider defence export industry is recording rapid growth.

India exported a record ₹38,424 crore worth of defence equipment in FY 2025-26, an increase of 62.66% from ₹23,622 crore in the previous financial year, according to the Ministry of Defence.

Private-sector companies accounted for ₹17,353 crore of those exports, while Defence Public Sector Undertakings contributed ₹21,071 crore.

Domestic defence production also reached a record ₹1.78 lakh crore in FY26, with private companies accounting for approximately ₹42,000 crore.

The figures point to a broader transition in India’s defence industry. Indian companies are increasingly moving from supplying primarily domestic military programmes towards becoming exporters of components, subsystems and complete defence products.

Moving Up the Defence Technology Value Chain

Paras Defence’s export ambitions are particularly significant because much of its portfolio sits in specialised areas such as precision optics, electro-optics and defence electronics.

These technologies form critical elements of surveillance systems, weapon sights, unmanned platforms, missile seekers, night-vision systems and counter-drone equipment. Successful exports in these areas allow Indian companies to participate in higher-value sections of the global defence supply chain rather than competing mainly in conventional manufacturing.

Paras Defence’s expected jump from around ₹50–60 crore in exports to ₹120–130 crore within a year remains modest compared with India’s overall defence exports. However, the pace of growth illustrates how private Indian defence companies are beginning to benefit from the combination of expanding indigenous capabilities and a global search for additional military suppliers.

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