Paras Defence Shares Slipped ~3% Despite Signing of MoU with Israel Firm

On April 4, 2025, Paras Defence share price slumped ~3%, reaching a day low of ₹973.05 12:55 PM, after opening at ₹1015.00 on BSE. The fall in Paras Defence shares came despite the announcement for signing of MoU, which is positive business development. On April 3, 2025, Paras Defence and Space Technologies Ltd entered into a strategic Memorandum of Understanding (MoU) with MicroCon Vision Ltd, Israel, a subsidiary of Controp and the Rafael Group, to bolster India’s defence and drone technology sectors.

Scope of MoU

As part of the agreement, Paras Defence will become the exclusive supplier of advanced drone camera technology in India, offering these systems at significantly reduced costs. The company will integrate high levels of indigenous content into these drone cameras and Intelligence, Surveillance, and Reconnaissance (ISR) payloads, boosting India’s self-reliance while reducing expenses.

Paras Defence plans to offer two models, typically priced at around ₹20 lakh and ₹40 lakh per unit. The company expects to reduce the cost of each model by 50-60%, making advanced surveillance technology more accessible to both Indian defence forces and commercial sectors.

MicroCon will exclusively supply Paras Defence with drone cameras, including ISR payloads and Electro-Optical/Infrared (EO/IR) seekers, while Paras Defence will become MicroCon’s exclusive partner for ISR operations in India. This partnership aligns with MicroCon’s strategy to expand its presence in India’s rapidly growing drone market.

Benefit to Indian Defence Market 

The MoU aims to expand both companies’ reach in the Indian ISR payload market. The integration of cutting-edge technologies such as AI-powered analytics, high-resolution imaging, and thermal vision will enhance surveillance capabilities, improving operational efficiency in both defence and civilian applications.

Management Take on Signing of MoU

“This collaboration represents a major leap forward in India’s defence capabilities,” stated Munjal Sharad Shah, Managing Director of Paras Defence. “We are committed to supporting India’s strategic goals and are proud to partner with MicroCon in this groundbreaking endeavour.”

“MicroCon is committed to delivering cutting-edge ISR payloads that drive the future of defence and surveillance systems,” said Chen Almog, CEO of MicroCon. “We are excited about our collaboration with Paras Defence, which is a key component of our strategy to establish strong local partnerships worldwide. We are confident this partnership will drive growth in the Indian tactical ISR and EO/IR seekers market. By combining MicroCon’s global expertise with Paras Defence’s local insights, we will foster innovation and strengthen the defence infrastructure. This partnership reflects our shared vision for advancing high-performance drone technology and creating lasting impact on both defence and commercial applications.”

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