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Paras Defence's Q1 profit flat, margins dip—reality check for investors

Business

Paras Defence saw its Q1 FY25 net profit hold steady at ₹15 crore, even as revenue jumped 11.5% to ₹93.2 crore.
But with rising costs, operating margins slipped from 28.8% to 23.6%, and EBITDA dropped by nearly 9%.

Investors not pleased with results

The flat profit and shrinking margins spooked investors—shares fell up to 5% after results, despite big gains earlier last year.
For a company supplying tech to Air Defence Systems, keeping profits healthy is key for future growth and investor trust.

Reality check for India's defense sector

Costs are eating into sales gains across Paras Defence's main business segments, hinting at some execution challenges beneath the surface.
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