Paras Defence Stock Split Goes Live, Multibagger Stock Sees Sharp Drop Of 8 Percent Despite Strong Q4 Results (Pic: Paras Website)
Ever wished your shares could multiply overnight? Well, Paras Defence just granted that wish—sort of. On Friday, July 4, the multibagger defence stock officially began trading ex-split, following its much-anticipated 1:2 stock split. Translation? Each Rs 10 share has now turned into two Rs 5 shares, fully paid up and ready for action.
Before you break out the calculator: no, your investment didn’t shrink. You just got double the shares at half the price—like slicing a pizza into more pieces, but still having the same pizza. This move increases liquidity, invites more retail investors, and makes the stock look extra affordable on paper.
So, if you logged into your trading app and wondered why the price looked like it dropped—no panic! That’s just Paras Defence flexing its split game. The market’s watching. Are you?
Despite a strong financial quarter and the stock split announcement, shares of Paras Defence fell over 8% on the day of the ex-split. This drop caught many investors by surprise. The decline may reflect profit booking or short-term volatility due to the adjusted price post-split. However, long-term investors continue to track the stock’s strong fundamentals and government support for domestic defence manufacturing. The dip opens a discussion around market reactions post-split and what it signals about investor sentiment in high-growth sectors.
Paras Defence has turned into a top-performing stock in 2025. Year-to-date, it has delivered a return of 68%, comfortably outperforming the Nifty 50 index, which gained just 7% during the same period. Over the past year, the stock rose by 18%, again outpacing the Nifty’s 5.5% rise. The stock’s five-year performance shows a remarkable 243% return, cementing its status as a multibagger in the Indian defence sector. Its strategic presence in defence electronics, space optics, and heavy engineering continues to attract investors and analysts alike.
Paras Defence secured shareholder approval for the stock split on June 7, 2025. The company officially informed the stock exchanges about this development on June 10. The stock split aims to improve liquidity and make the shares more accessible to a broader base of investors. The move comes amid strong investor interest, especially in defence and space sector plays. With Paras Defence being the only Indian firm producing infrared optics at scale, this split reflects the company’s intent to broaden its retail investor base and support future expansion plans.
In the March quarter (Q4FY25), Paras Defence reported a sharp 97.8% year-on-year rise in consolidated net profit to Rs 20 crore, compared to Rs 10 crore in the same quarter last year. Total revenue for the quarter touched Rs 112 crore, growing 31.8% year-on-year. EBITDA for the quarter surged to Rs 28.3 crore, up from Rs 3.4 crore a year ago. The company also saw a major jump in EBITDA margins from 15.6% to 26.2%. This strong financial performance underlines the firm’s growing operational efficiency and rising defence contracts.
| Event | Details |
|---|---|
| Stock Split Ratio | 1:2 (Rs 10 split into Rs 5 each) |
| Ex-Split Date | July 4, 2025 |
| YTD Return (2025) | +68% |
| 1-Year Return | +18% |
| 5-Year Return | +243% |
| Q4FY25 Net Profit | Rs 20 crore (↑ 97.8% YoY) |
| Q4FY25 Revenue | Rs 112 crore (↑ 31.8% YoY) |
| Q4FY25 EBITDA | Rs 28.3 crore (↑ from Rs 3.4 crore) |
| Q4FY25 EBITDA Margin | 26.2% (↑ from 15.6%) |
| Stock Price Movement (July 4) | Fell over 8% |
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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