According to a report by Reuters, India’s Paras Defence has projected a sharp rise in its export revenues for fiscal 2027, with expectations of at least doubling compared to the previous year.

The company’s Technical and R&D Director Amit Mahajan explained that escalating geopolitical tensions, particularly the ongoing Middle East conflict, have fuelled demand for its defence engineering products.

Governments across regions are increasing defence budgets, creating a surge in orders for military equipment and specialised components.

Paras Defence, headquartered in Mumbai, anticipates exports to reach between ₹1.2 billion and ₹1.3 billion this fiscal year, compared to ₹500 million to ₹600 million in fiscal 2026.

This marks a significant leap in its international business footprint. Exports accounted for about 10% of the company’s revenue last year, but the firm expects this share to grow substantially as demand intensifies.

Overall revenue is also forecast to rise to between ₹6 billion and ₹6.5 billion in fiscal 2027, up from ₹4.77 billion in the previous year. Orders from Israel and the United Arab Emirates have already increased, while demand from France and Germany has also strengthened.

European countries are accelerating military spending and diversifying supply chains amid concerns about overdependence on U.S. suppliers. Mahajan noted that while regional demand has grown, the company is not targeting specific geographies, preferring to remain flexible in its export approach.

Paras Defence specialises in optical and electro-optics systems for defence and space applications. Its portfolio includes infrared lenses, anti-drone equipment, and border-surveillance systems.

The company’s primary customers are state-run and private Indian defence firms such as Hindustan Aeronautics Limited and the Defence Research and Development Organisation (DRDO). This domestic base provides a strong foundation for its expanding export operations.

India’s defence exports as a whole grew by 62% to $4.1 billion in fiscal 2026, with explosives forming the bulk of shipments. Within the niche of optics and electro-optics, Paras Defence faces limited competition, with state-owned Bharat Electronics being the only major rival. Industry analysts have highlighted Paras’s unique positioning in this specialised segment.

Investor interest in the defence sector has surged in 2026. The Nifty India Defence index, which includes Paras Defence, has gained 27% this year, contrasting sharply with a 7% decline in the benchmark Nifty 50.

Since the outbreak of the Iran war in late February, the defence index has risen nearly 21%, reflecting strong investor confidence in the sector’s growth prospects.

Paras Defence’s expansion underscores the broader transformation of India’s defence industry, which is increasingly recognised as a global supplier of advanced military technologies. With rising demand from both traditional and new markets, the company is poised to play a larger role in India’s export growth story.

Agencies