Defence shares fall for 4th day amid profit booking, Paras Defence's weak Q1 results; all eyes on BEL, MDL June qtr numbers

Defence shares fall for 4th day amid profit booking, Paras Defence's weak Q1 results; all eyes on BEL, MDL June qtr numbers

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26 Aug, 2025 12:21

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Defence shares continued to decline for fourth straight day on July 28 amid profit booking, weak June quarter results by Paras Defence.

Paras Defence's Q1 results weighed on investor sentiment as its Q1 net profit declined 32% sequentially and rose marginally on yearly basis.

The revenue from operations witnessed an 11.5% YoY increased at Rs 93.19 crore as against Rs 83.57 crore in the corresponding period of the previous financial year.

On July 28, Paras Defence shares hit 10% lower circuit and were trading at Rs 704.7 apiece. So far, the stock fell 23% from its highs in July.

Investors will be looking for cues from the June quarter results of Mazagon Dock Shipbuilders Ltd and Bharat Electronics Ltd, scheduled to be released later on July 28, on whether the defence shares have bottomed our or if more fall is likely.

At 1:15 pm on July 28, shares of MDL and BEL were each trading 3% lower.

Nirmal Bang Equities expects the company to report a consolidated net profit of Rs 695 crore for the June quarter on revenues of Rs 2,828 crore. Meanwhile, Antique Stock Broking expects a consolidated bottom line of Rs 567 crore and a top line of Rs 2,711 crore from the shipbuilding company for the reporting quarter, reported Informist.

Mazagon Dock Shipbuilders reported a 51% year-on-year decline in its Q4FY25 consolidated net profit at Rs 325 crore versus Rs 663 crore posted in the year ago period.

The company's revenue from operations in the said quarter stood at Rs 3,174 crore, gaining by 2.3% over Rs 3,103 crore reported in the corresponding quarter of the last financial year.

BEL, a Navratna defence PSU, had reported an 18.4% year-on-year (YoY) increase in net profit at Rs 2,127 crore for the fourth quarter as against Rs 1,797 crore in Q4FY24.

Revenue from operations rose 6.8% to Rs 9,149.6 crore from Rs 8,564 crore a year ago.

At 1:20 pm on July 28, Nifty India Defence index was trading 2.2% lower at 7,816, thus extending its four-day fall to 5%. The index's 52-week high is 9,195 and 52-week low is 3,375.

Defence shares were trading with high valuations on the back of Operation Sindoor, NATO ramping up its defence spending, escalating Iran-Israel conflict but as these sectoral tailwinds eased, the defence shares have seen profit booking in the most part of the month.