Budget 2025: Paras Defence Expects Centre To Introduce DLI Scheme For Defence
Paras Defence, which clocked a net revenue of Rs 253 crore in fiscal 2024, expects to log a "growth of at least 40%" in its topline over the next three years.
In the upcoming Union Budget for fiscal 2026, the government should roll out a design-linked incentive scheme for the defence technology sector, said Amit Mahajan, the director of Paras Defence and Space Technologies Ltd.
The DLI scheme currently exists for the semiconductor sector, as the government introduced it in December 2021 to offer financial incentives as well as design infrastructure support across various stages of development of semiconductor design.
Mahajan, while speaking to NDTV Profit on Thursday, said the DLI scheme should also be introduced in the defence technology sector in order to achieve self-reliance on this front.
"We are looking for DLI, which is development-linked or design-linked incentives. That is because production is one thing, but when we look at becoming self-reliant or Aatmanirbhar in defence technology, then you (government) should incentivise the in-house design and development of these technologies," Mahajan said.
The way the government has been "taking positive steps" indicates that they "surely will introduce the DLI scheme very soon", he added.
40% Growth In Next Three Tears
Paras Defence, which clocked a net revenue of Rs 253 crore in fiscal 2024, expects to log a "growth of at least 40%" in its topline over the next three years, as per Mahajan.
"This year (fiscal 2025) and next year (fiscal 2026), we are crossing the 40% mark, or we will be close to 50%. This trend will continue in the third year as well because our subsidiaries will start contributing significantly to the revenues," he said.
The defence sector in general looks "very promising", Mahajan said, pointing out that Paras Defence's order book is at an all-time high. "Our H1 results show we are on track to achieve beyond the industry average. We have reasons to smile as we close Q3, and we look forward to achieving strong growth in Q4 as well."
The flow of orders indicate that the next year would also "go in a similar fashion", Mahajan said, adding that this is a "good time" to be manufacturing in India.
On being asked about the drones segment, the top Paras Defence executive noted that the company is currently not bullish on it. "We are not saying we are going away from the drone business, but we are not very bullish."
"We are right now in the process of making sure we introduce certain technologies in the drone segment that do not exist currently. That will allow us to be the differentiator," Mahajan added.
Shares of Paras Defence on Thursday closed 1.38% lower at Rs 990.9 apiece on the BSE, compared to a flattish close for the benchmark Sensex.
