Paras Defence wins ₹80.28-crore DRDO optics order

Order details: air-defence optical system

Paras Defence and Space Technologies Ltd said it has received an order worth about ₹80.28 crore from the Defence Research and Development Organisation (DRDO), Ministry of Defence. The contract is for the development of a high-precision optical system meant for air-defence applications. In its regulatory filing, the company said the contract has been awarded by DRDO under the Ministry of Defence. The project is scheduled to be executed within 18 months. The company also disclosed that its promoter or promoter group has no interest in the awarding entity. It added that the order does not fall under related-party transactions. The update places focus on Paras Defence’s optics and optronics capabilities, a core vertical in its defence portfolio.

Compliance disclosures and governance points

Along with the order value and scope, Paras Defence’s filing highlighted standard governance checks that investors typically track for defence contracts. The company stated that the promoter or promoter group has no interest in DRDO, the awarding entity. It also clarified that the transaction is not a related-party transaction. Such disclosures matter because defence procurement often involves government bodies where related-party considerations are scrutinised. The company’s statement keeps the update narrowly tied to contract execution and compliance. Paras Defence did not provide a unit-level breakup of the optical system, but described it as a high-precision system for air-defence applications. The only execution guidance provided is the 18-month timeline.

Where this fits in Paras Defence’s business mix

Paras Defence is a Mumbai-based company founded in 1979 as a small engineering set-up. It is listed on BSE and NSE and describes itself as an indigenously focused defence and space manufacturer. The company operates through two core verticals: optics and optronic systems, and defence engineering. Its defence engineering activities include defence electronics, electromagnetic pulse (EMP) protection solutions, and heavy engineering. The optics-led DRDO order aligns with the company’s emphasis on design-to-delivery capabilities for optical systems. Paras Defence positions itself as an Indigenous Design, Development and Manufacturing (IDDM) partner, with an R&D-led approach. It also supplies to multiple government organisations and public sector undertakings, including DRDO and ISRO.

Recent order pipeline: MoD counter-drone contracts

Separate from the ₹80.28-crore DRDO optical systems order, the company has also been associated with multiple counter-drone orders from the Ministry of Defence. Paras Defence has reported two MoD contracts worth a total of ₹35.68 crore for Portable Counter-Drone Systems designed to detect, identify, and neutralise hostile UAVs. These two contracts are scheduled for completion by May 2026. In addition, Paras Defence’s subsidiary, Paras Anti-Drone Technologies Pvt. Ltd., received a separate MoD order worth ₹3.95 crore for supply of radio frequency (RF) jammers for drone detection and disruption, also scheduled to be executed by May 2026. Earlier updates also referenced a ₹46.19-crore MoD order for Advanced Anti-Drone Systems, including drone jammers and detection units, with execution expected by March 2026. Together, these orders show activity across both optics-led and electronics-led defence segments.

DRDO work beyond air defence: submarine optronic periscopes

Paras Defence has also reported a DRDO order worth about ₹72 crore for the supply of two optronic periscopes for submarine applications. The company stated it is currently the only Indian company developing and manufacturing optronic periscopes in the Asia-Pacific region for submarine applications. It also said it delivers one periscope every three months and is aiming for higher output. Optronic periscopes are described as critical components in modern submarines for enhanced surveillance and targeting capabilities. This periscope contract and the new ₹80.28-crore air-defence optics development order together reinforce the company’s positioning in high-end optical systems across platforms.

Manufacturing footprint, workforce, and certifications

Paras Defence said it has AS9100D-certified processes across two locations in Navi Mumbai and Ambernath, Thane. It reported a workforce of over 600. The company stated its facilities are built to support turnkey solutions from design to commissioning for small and large systems. It also listed manufacturing capabilities such as a nano-machining set-up, CNC machining, optical coatings, and certified electronic assembly. It added that its facilities are equipped for design, testing, and MIL-STD qualification of advanced sub-systems and assemblies. In the context of defence programmes, these capabilities are relevant because many projects are design and development projects that require qualification and integration readiness.

Partnerships and joint ventures supporting scale-up

Paras Defence has described multiple collaborations tied to electro-optics, drones, and space structures. It has formed a joint venture with Controp Precision Technologies, Israel, to manufacture EO/IR systems in India for various platforms including drones under the government’s ‘Make in India’ initiative. It also collaborated with MicroCon Vision Ltd, Israel, part of Controp and the Rafael Group, under which MicroCon will serve as Paras Defence’s exclusive supplier for drone cameras including ISR payloads and EO/IR seekers, while Paras becomes MicroCon’s exclusive partner for ISR operations in India. The company also announced a strategic joint venture with HevenDrones Israel, an independent subsidiary of US-based Heven, to establish a new entity in India for next-generation drone systems for defence and homeland security, with plans to address global markets over the long term. Separately, Paras Defence signed a teaming agreement with Germany-based High Performance Space Structure Systems GmbH to co-develop and supply unfurlable and deployable antenna reflector subsystems for space applications in the Indian region.

Key facts table: reported orders and timelines

Market impact: what changes for investors and the sector

The immediate market relevance of the ₹80.28-crore DRDO order is its reinforcement of Paras Defence’s optics and optronics pipeline, which the company identifies as a core vertical. The 18-month execution schedule provides a clear delivery window, though no revenue recognition pattern was disclosed. The company’s additional reported MoD orders in counter-drone systems add visibility to its defence electronics and anti-drone portfolio, including portable systems and RF jammers. The mix of development work (air-defence optics) and supply contracts (counter-drone systems and periscopes) indicates participation across different stages of the defence value chain. The company also emphasised that the new DRDO order is not a related-party transaction and that promoters have no interest in the awarding entity, which is a governance datapoint investors track in contract-driven businesses.

Why this order matters: optics-led defence programmes and indigenisation

Paras Defence positions itself as a domestic designer and manufacturer of high-end optical systems, including large-format space optics and hyperspectral imaging systems for space applications. It has also stated it is the only private Indian company to offer turnkey EMP protection solutions and the only private Indian company to develop and manufacture hyperspectral cameras for defence and space applications, which it said are scheduled to be jointly launched by DRDO and ISRO in the current fiscal year. In that context, an air-defence optical system development contract from DRDO supports the company’s stated direction to contribute to air-defence technologies. The company has linked its approach to government initiatives such as ‘Make in India’ and Atmanirbhar Bharat, while also building partnerships with overseas firms for platforms and components. The new order adds another DRDO-linked programme to its disclosed list, alongside submarine periscopes and space-related imaging work.

Conclusion

Paras Defence’s ₹80.28-crore DRDO order for a high-precision air-defence optical system adds a new 18-month execution project to its disclosed defence pipeline. Alongside other reported MoD counter-drone contracts and a DRDO periscope supply order, the update keeps attention on the company’s optics and defence engineering capabilities. The next concrete milestones, based on disclosed timelines, include execution targets by March 2026 for the advanced anti-drone systems order and by May 2026 for the portable counter-drone systems and RF jammer contracts.