Defence stock jumps 9% after signing deal with US-based firm for aerial refueling systems

Synopsis:-Paras Defence and Space Technologies has signed an exclusive ten-year agreement with Bandak Aviation Inc. DBA Northstar, USA, to supply and support air-to-air refueling systems and accessories for the Indian Armed Forces, sending shares up 9 percent intraday.

Shares of a leading defence and space technologies company surged nearly 9 percent on Wednesday after the Navi Mumbai-based firm disclosed an exclusive, decade-long supply agreement with Bandak Aviation Inc.,operating as Northstar, out of the United States.

The filing, submitted to both BSE and NSE clearly caught the market’s attention. Shares of Paras Defence and Space Technologies Ltd were trading around ₹754 apiece, up 9 percent from a previous close of ₹705.90, putting the company’s market capitalisation at approximately ₹6,096 crore. The stock currently trades at a price-to-earnings multiple of around 83x.

What the deal actually says

Paras Defence has signed an agreement with Bandak Aviation Inc. DBA Northstar, USA and will work exclusively with each other with no third-party detours allowed to build out facilities and depot-level capability for supplying and supporting Northstar’s air-to-air refueling systems across Indian Armed Forces platforms. The tie-up runs for ten full years.

Northstar is a specialist in aerial refueling, with a product line covering air-to-air refueling systems and accessories designed for various airborne platforms. The timing is notable: the Indian Air Force has been actively modernising its fleet, and in-flight refueling capability sits high on that priority list.

Company at a glance

Incorporated in 2009 and listed on both major exchanges, Paras Defence has quietly built a diversified portfolio spanning defence optics, defence electronics, heavy engineering, and electromagnetic pulse protection solutions. Its subsidiary ecosystem now includes companies focused on aerospace, anti-drone technologies, and thermal systems, among others.

Financially, the company has been on a steady upward trajectory. For FY2025, the company reported revenue of around Rs.365 crore and a net profit of approximately Rs.61 crore, reflecting continued growth in its core operations.

The momentum has carried into the current fiscal year as well. In Q3 FY2026 (ended December 31, 2025), consolidated revenue from operations stood at Rs.106.35 crore, registering a 21% year-on-year growth, while net profit came in at Rs.17 crore, marking a 19% YoY increase compared to the same period last year

The Northstar agreement adds a meaningful new revenue avenue and, more importantly, plants Paras Defence squarely in the middle of a procurement segment that the Indian military is expected to spend heavily on over the coming decade.

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