PARAS Q2 FY27 Results Analysis: Revenue Surges 43%, EBITDA Margin Expands 138 bps

Cofacto Research Published October 29, 2026 2 min read

Positive

PARAS's Q2 FY27 numbers came in strong, with revenue of Rs. 151.12 Cr (+42.94% YoY) and PAT growth of +57.04% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 29, 2026
Quarter	Q2 FY 2026-2027
Revenue (Q2)	Rs. 151.12 Cr (+42.94% YoY)
PAT (Q2)	Rs. 30.56 Cr (+57.04% YoY)
EBITDA margin	29.46% (+138 bps YoY)
EPS (Q2)	Rs. 3.76 (+46.90% YoY)
Market cap	Rs. 10,718.99 Cr
CMP	Rs. 1,329.70

Quarter Snapshot

Q2 FY27 delivered 42.94% YoY revenue growth with EBITDA margin of 29.46% (+138 bps YoY), driven by Optics & Optronic Systems revenue nearly doubling with a 60.29% segment margin. Cash conversion turned around emphatically (H1 CFO Rs.86.44 Cr vs −Rs.14.09 Cr year-ago) with a net cash balance sheet of Rs.164.28 Cr and an ICRA upgrade to A. The key soft spot is Defence Engineering, where segment margin fell to 9.00% from 25.06% year-ago.

Key Investment Insights

Key Positives

Consolidated revenue grew 42.94% YoY to Rs.151.12 Cr and 18.15% QoQ, reversing Q1's −25.33% QoQ dip
EBITDA grew 49.95% YoY to Rs.44.52 Cr with margin of 29.46% (+138 bps YoY, +451 bps QoQ)
Optics & Optronic Systems revenue +94.20% YoY to Rs.74.65 Cr with 60.29% segment margin (vs 48.52% year-ago)
H1 CFO of Rs.86.44 Cr vs −Rs.14.09 Cr year-ago; CFO/PAT 1.68x; FCF Rs.73.13 Cr
Net cash of Rs.164.28 Cr with borrowings of only Rs.2.76 Cr; receivables +2.51% vs Mar-26 against 40% H1 revenue growth
H1 normalized PAT of ~Rs.55.2 Cr after stripping a Rs.5.24 Cr ECL reversal gain, up ~55-60% YoY
ICRA upgrade to A (Stable) on 30-Sep-2026; finance costs fell 28.33% YoY to Rs.0.86 Cr
NCI swung positive (+Rs.0.26 Cr vs −Rs.1.18 Cr year-ago) as subsidiaries turned profitable

Risk Factors

Defence Engineering segment margin collapsed to 9.00% from 25.06% year-ago (segment result −59.19% YoY)
Cost of materials consumed rose to 46.82% of revenue from 34.50% year-ago (+1,232 bps YoY)
Margin expansion was mix- and other-expense-driven: other expenses fell to 7.22% of revenue from 17.27% year-ago, which may not recur
Deferred tax component was Rs.3.58 Cr, ~35% of the total Q2 tax charge
Rs.150 Cr Paras Anti-Drone related-party transaction was rejected by shareholders