Paras Defence shares jump 11% in two days on 10-year deal with U.S.-based NorthStar

Shares of Paras Defence and Space Technologies continued its gaining momentum on Thursday, rising nearly 4% in early trade on deal with U.S.-based Bandak Aviation Inc. DBA Northstar. The defence stock has gained over 11% in two sessions following the announcement of the deal, under which Paras Defence will supply and support Northstar’s advanced products, including air-to-air refuelling systems and related accessories.

Continuing its upward momentum for the sixth straight session, the stock rose as much as 3.7% to ₹783.20 on the BSE. It opened 1.9% higher at ₹769.85, after closing 6.9% higher at ₹755.15 in the previous session. At the time of writing, Paras Defence shares were trading around 1% higher at ₹763, with a market capitalisation of ₹6,148.8 crore.

Over the past six sessions, the small-cap defence stock has rallied about 22%. It is up over 21% in the past month and 12% so far in 2026. Over a one-year period, the stock has delivered a return of 47%, while gaining nearly 9% in the last six months. The stock had hit a 52-week high of ₹971.80 on May 19, 2025, and a low of ₹508 on April 25, 2025.

In an exchange filing yesterday, Paras Defence said it has entered into an agreement with Northstar to supply and support advanced aerial refuelling systems. The partnership will also involve providing associated services for the Indian Armed Forces.

Northstar is globally recognised for its expertise in designing, developing, and manufacturing air-to-air refuelling systems, which are widely deployed across airborne platforms to enhance mission endurance and operational flexibility.

Amit Mahajan, Director at Paras Defence, said the agreement marks a significant step in expanding the company’s capabilities in advanced aerospace solutions. He added that the partnership would help bring proven refuelling technologies and support services to the Indian Armed Forces, positioning Paras among the first domestic players in this space.

“Partnering with Northstar enables us to bring proven air-to-air refuelling technologies and support services to the Indian Armed Forces. We are likely to be the first company to do this,” he said.

A Northstar representative said the collaboration reflects a shared commitment to delivering reliable and high-performance refuelling systems to support critical defence requirements. “We are pleased to collaborate with Paras to deliver reliable and high-performance refuelling systems and services. This partnership reflects our commitment to supporting critical defence requirements with advanced and dependable solutions.”

Through this partnership, Paras Defence aims to strengthen its aerospace portfolio while contributing to the modernisation and capability enhancement of India’s defence forces.

Paras Defence and Space Technologies operates across two key verticals - optics & optronic systems and defence engineering, which includes defence electronics, electromagnetic pulse (EMP) protection solutions, and heavy engineering. Notably, it is the only Indian company manufacturing optronic periscopes for submarine applications in the Asia-Pacific region.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)