India's Paras Defence (PRAF.NS) expects export revenue to at least double this fiscal year as the Middle East conflict fuels demand for its defence engineering products, a top executive told Reuters.
Escalating geopolitical tensions are driving governments to boost defence budgets, creating a surge in orders for makers of military equipment and components.
Mumbai-based Paras Defence expects exports to rise to 1.2 billion to 1.3 billion rupees ($12.53 million-$13.58 million), from 500 million to 600 million rupees last year, Technical and R&D Director Amit Mahajan said.
Exports accounted for about 10% of the company's revenue in fiscal 2026.
Paras also expects revenue of 6 billion to 6.5 billion rupees in fiscal 2027, up from 4.77 billion rupees a year earlier as demand rises.
Orders from Israel and the United Arab Emirates have grown in the fiscal year so far, while demand from France and Germany has also increased as European countries accelerate military spending and diversify supply chains amid concerns about dependence on U.S. suppliers, Mahajan said.
The company declined to provide regional growth figures and said it was not targeting specific geographies.
Paras exports optical and electro-optics systems for defence and space, including infrared lenses, anti-drone equipment and border-surveillance systems.
Its primary customers include state-run and private Indian defence firms such as Hindustan Aeronautics (HIAE.NS) and the Defence Research and Development Organisation (DRDO).
India's defence exports grew 62% to $4.1 billion in fiscal 2026, with the bulk of exports comprising explosives.
Few domestic companies export optics and electro-optics equipment, with state-owned Bharat Electronics (BAJE.NS) being the only major rival to Paras, an industry analyst said.
Investor interest has grown in the sector this year. The Nifty India Defence index (.NIFTYINDDEFENCE), which includes Paras, has gained 27%, against a 7% fall in the benchmark Nifty 50 (.NSEI). The defence index is up nearly 21% since the Iran war began in late February.
($1 = 95.7425 Indian rupees)
