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Paras Defence Declares Stock Split Amid Shareholding Shift

Paras Defence Declares Stock Split Amid Shareholding Shift

Institutional buying rises as promoters trim stake

Paras Defence and Space Technologies Ltd has revealed plans to split its equity shares in a *1:2 ratio*, reducing the face value of each share from ₹10 to ₹5. The company aims to enhance stock liquidity and increase retail investor accessibility through this move.

Recently, the company experienced notable changes in its shareholding structure. *Promoters offloaded a total of 13,34,208 shares, indicating a potential rebalancing of their holdings or profit realization. In contrast, **Foreign Institutional Investors (FIIs)* acquired *8,21,215 shares, while **Domestic Institutional Investors (DIIs)* picked up *2,50,252 shares* during the same period. This divergence highlights the growing confidence of institutional investors in the company’s growth outlook.

With expertise in defence optics, space systems, and high-end manufacturing, the company stands to gain from the Indian government’s push for indigenous development under the *Make in India for Defence* initiative.

The announced share split is expected to improve market participation, especially among retail investors, by making shares more affordable. Such corporate actions often lead to increased stock liquidity and improved investor sentiment. Moreover, the recent surge in institutional buying is seen as a positive indicator of long-term potential, especially given the critical nature of the defence and aerospace domains.

Experts believe the institutional interest amid promoter selling indicates sustained belief in the company’s business fundamentals. The firm continues to secure new projects across government and private clients, contributing to a growing order pipeline. As India emphasizes self-reliance in defence, companies like Paras Defence are expected to play a pivotal role.

The combination of a share split and robust institutional investment suggests a period of strategic repositioning, which may unlock further growth opportunities. Supported by increasing demand, favourable policies, and its technological edge, Paras Defence is well-positioned to strengthen its presence in the defence and space industry.

Summary

Paras Defence has announced a 1:2 stock split to improve share affordability. While promoters reduced their holdings by over 13 lakh shares, FIIs and DIIs collectively acquired over 10 lakh shares, underscoring growing institutional trust in the company’s future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The image added is for representation purposes only

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MTAR Technologies Q4 Profit Soars, Shares Gain Momentum

MTAR Technologies Q4 Profit Soars, Shares Gain Momentum

 

MTAR Technologies Ltd, a leading Indian precision engineering and defence equipment manufacturer, delivered a powerful performance in the fourth quarter of FY25, reporting a staggering 180% rise in net profit. Following this announcement, the company’s stock witnessed a sharp 5% uptick, reflecting increased investor confidence and market enthusiasm.

Strong Q4 Earnings Signal Growth Momentum

In Q4 FY25, MTAR Technologies recorded a net profit of ₹48 crore, marking a substantial increase from ₹17 crore in the corresponding quarter of the previous fiscal year. The company’s total revenue rose to ₹260 crore, up from ₹149 crore in Q4 FY24, indicating a 75% increase. This financial leap highlights MTAR’s efficiency in capitalizing on demand from key sectors, including defence, aerospace, and clean energy.
Operational profitability also improved, with EBITDA reaching ₹82 crore compared to ₹41 crore last year. The company’s improved EBITDA margin points toward its success in managing production costs, enhancing productivity, and leveraging economies of scale.

Market Response: Share Price Moves Up 5%

The stellar quarterly performance pushed MTAR’s stock price up by 5% on the trading day following the results. Investors were quick to acknowledge the significant jump in profitability and revenue, treating it as a sign of sustained growth in the defence and clean energy sectors.
With the Indian government placing a high emphasis on self-reliance in defence manufacturing, investors are viewing MTAR as a key beneficiary of policy reforms and long-term structural tailwinds.

Growth Drivers: Defence, Aerospace, and Energy

MTAR Technologies operates at the intersection of three critical and fast-evolving sectors—defence, aerospace, and sustainable energy. Each of these verticals contributed to the company’s Q4 growth trajectory.

Defence & Aerospace

MTAR has become a trusted supplier for India’s defence agencies, including the Defence Research and Development Organisation (DRDO) and other strategic defence establishments. It manufactures missile components, nuclear-grade assemblies, and key equipment for space missions.
Government-backed initiatives like “Make in India” and “Atmanirbhar Bharat” have fuelled demand for domestically produced defence systems. MTAR, with its history of high-precision manufacturing, is strategically positioned to meet these growing requirements.

Clean and Renewable Energy

MTAR’s clean energy segment is also gaining momentum. The company supplies components and assemblies to major global energy firms in the nuclear and hydrogen energy sectors. With the world accelerating toward green technologies, MTAR’s focus on building solutions for fuel cells, nuclear reactors, and electrolyzers puts it on a solid growth path.

Key Business Highlights and Orders

During the quarter, MTAR executed several major projects and also added new contracts worth ₹300 crore across its three verticals. These orders came from both Indian government bodies and international clean energy companies. The company continues to expand its manufacturing base in Hyderabad, enhancing both capacity and technical capabilities.
Additionally, MTAR has initiated digital and process automation upgrades across its facilities to further improve quality and reduce turnaround time for complex products.

Leadership Viewpoint

Speaking on the results, Mr. Parvat Srinivas Reddy, Managing Director of MTAR Technologies, said, “We’re pleased with the progress we’ve made in Q4. The surge in our net profit and order book validates our efforts in delivering high-value, mission-critical solutions. As global demand rises for clean energy and defence capabilities, we are aligning ourselves to scale effectively and innovate continuously.”
He emphasized that MTAR’s strong relationships with strategic clients and continuous investment in R&D are key pillars of future growth.

Road Ahead: Outlook for FY26

Looking forward, MTAR Technologies expects continued growth from all major verticals. The company is planning significant capital expenditure in the upcoming fiscal to expand production lines and enhance technical infrastructure.
With India’s defence budget seeing consistent annual increases and global interest in hydrogen and nuclear energy picking up, MTAR anticipates rising demand for its high-precision components.
The company is also exploring new export opportunities, especially in regions with growing investments in space and defence technologies. Collaborations and joint ventures are being considered to diversify revenue streams and enhance technological capabilities.

Conclusion

MTAR Technologies has delivered an exceptional Q4 performance, showcasing strong profitability and revenue growth, backed by demand in defence and energy sectors. With a 180% net profit rise and a 5% surge in its stock price, the company continues to attract attention from analysts and investors alike. As India pushes for defence self-reliance and global focus shifts to sustainable energy, MTAR is well-positioned to benefit from these structural trends.

 

 

 

 

 

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