Annual Report for the Financial Year 2025-26 of Paras Defence and Space Technologies Limited (''''PARAS'''') along with the Notice of 17th Annual General Meeting.

August 18, 2026 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Fort, Mumbai - 400 001 Bandra - (East), Mumbai - 400 051 Scrip Code: 543367 Trading Symbol: PARAS Dear Sir/Madam, Sub: Notice of 17th Annual General Meeting of Paras Defence and Space Technologies Limited (“the Company”) and Annual Report for Financial Year 2025-26 This is further to our intimation dated August 07, 2026, wherein the Company had informed that the 17th Annual General Meeting (“AGM”) of the Company is scheduled to be held on Friday, September 11, 2026 at 12:30 p.m. (IST) through Video Conferencing (“VC”) / Other Audio-Visual Means (“OAVM”), in accordance with the relevant circulars issued by Ministry of Corporate Affairs (“MCA”) and Securities and Exchange Board of India (“SEBI”). Pursuant to Regulation 34(1) and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), we hereby submit the Annual Report of the Company for the Financial Year 2025-26, including Notice convening the 17th AGM. The Annual Report, including the Notice of the AGM, is being sent electronically to those Members whose e-mail addresses are registered with the Company/Registrar & Share Transfer Agent (“RTA”)/Depository Participant(s) (“DPs”). Further, pursuant to Regulation 36(1)(b) of the Listing Regulations, the Company will dispatch a letter to the Members whose e-mail addresses are not registered with the Company/RTA/DPs, providing a web-link from which the complete Annual Report can be accessed on the website of the Company. The cut-off date for determining the eligibility of Members to vote electronically on the resolutions proposed at the 17th AGM is Friday, September 04, 2026. The Notice of the 17th AGM and the Annual Report for the Financial Year 2025-26 are also available on the website of the Company at Paras Defence. We request you to kindly take the same on record and oblige. Thanking you, For Paras Defence and Space Technologies Limited Minal Bhate Company Secretary and Compliance Officer Membership No.: A20188 Encl.: as above Annual Report PARAS DEFENCE 2025-26 AIR DEFENCE LASER BASED PRECISION POWER PROTECT PARAS DEFENCE AND SPACE TECHNOLOGIES LTD. Premier Indian Defence & Space Manufacturing Company The future of defence is being shaped by intelligent technologies capable of delivering speed, accuracy and decisive response. As modern threats become more complex, next-generation air defence systems are 02-36 Corporate 37-150 Statutory combining precision, reliability and operational efficiency. Laser-based Overview Reports defence technologies represent this transformation, offering the ability 02 About Us 37 Notice to detect, track and neutralise aerial threats with unmatched accuracy 04 Chairman’s Message 67 Board’s Report while redefining the economics and effectiveness of modern warfare. 06 Managing Director’s Message 78 Corporate Governance Report 08 Our Business Verticals 105 Management Discussion and Analysis 12 Industry Overview 117 Business Responsibility and Sustainability Report 16 Segment-wise Performance 17 Our Customers 18 Our Financial Performance 19 Our Flagship Products 151-278 Financial 20 Our Subsidiaries Statements 24 Research and Development 28 Manufacturing Capabilities Standalone 30 Our People 152 Independent Auditor’s Report 32 Our Stakeholder Engagement 162 Standalone Financial Statements 34 Board of Directors 36 Corporate Information Consolidated 214 Independent Auditor’s Report 222 Consolidated Financial Statements As the first Indian private-sector Company developing indigenous high-power laser systems for air defence and space applications, we are translating decades of expertise in optics, precision engineering and advanced system Contents integration into technologies that strengthen India’s strategic capabilities. Our investments in advanced optics, electro-optical systems, directed-energy solutions and next-generation R&D are laying the foundation for a future where indigenous innovation safeguards national security. The theme of this year’s Annual Report, “LASER BASED | AIR DEFENCE PRECISION. POWER. PROTECT” Scan the QR Code to view embodies our pursuit of precision in design, power the report online To know more about the company please log on to through innovation and our enduring mission to protect https://www.parasdefence.com the nation by advancing self-reliant, world-class defence technologies for the future. Forward-looking statements Some information in this report may contain forward-looking statements which include statements regarding Company’s expected financial position and results of operations, business plans and prospects etc. and are generally identified by forward-looking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,” “expect,” “may,” “will” or other similar words. Forward-looking statements are dependent on assumptions or basis underlying such statements. We have chosen these assumptions or basis in good faith, and we believe that they are reasonable in all material respects. However, we caution that actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Paras Defence and Space Technologies Limited Annual Report 2025-26 Corporate Overview Statutory Reports Financial Statements About Us Powering Precision. Our Fundamentals CREATE- IDEATE- RIGHT QUALITY AT THE BEST RESOURCE IN THE Protecting the Nation. INNOVATE RIGHT TIME RIGHT DIRECTION We are one of the oldest design houses Our Company has a highly efficient Our Company believes in employing and probably the best in the area of manufacturing setup, which includes the best resources, be they human, defence engineering. Most of our state-of-the-art machinery, a well-trained machinery, tools, infrastructure, space, With a legacy spanning over four decades, Paras Defence & Space Technologies projects are design and development and skilled workforce, an equipped quality etc., to attain customer satisfaction, in stands at the forefront of India's evolving defence and space ecosystem, delivering projects, focused on providing cutting- team, a robust supply-chain group, an turn imparting growth to the company and edge solutions to customer requirements experienced system integration team, and improving the profitability of operations. advanced engineering solutions for strategic and mission-critical applications. We with extensive in-house R&D efforts. on-job-trained commissioning engineers. are a leading private-sector defence engineering Company specialising in optics and optronic systems, defence electronics, electromagnetic protection solutions and heavy engineering, underpinned by strong IDDM (Indigenously Designed, Developed and Manufactured) capabilities. W 1 Wide Range of Products Leveraging our technological expertise and state-of-the-art manufacturing infrastructure, we deliver D 2 Strong and Experienced Workforce solutions for critical applications across rockets and missiles, space research, naval systems, armoured F F E 3 World-Class Quality vehicles, electronic warfare and surveillance. Through our subsidiaries, we have expanded into R emerging technologies, including drones, anti-drone systems, RF and microwave systems, EO/IR TN 4 Innovation and R&D Centric solutions and quantum communication, reinforcing our commitment to innovation, technological AI excellence and India’s vision of self-reliance. SE 5 World Class Manufacturing Setup 6 Heritage of Defence and Space Programmes Performance at a Glance ₹476.57 Crores Revenue from Operations ₹120.46 Our Vision Crores India’s No. 1 High- India’s No. 1 EBITDA End Optical Systems ElectroMagnetics Compa [Showing first 8,000 characters — download PDF for full document]