Paras Defence signs MoU with Israel's Cielo for inertial solutions

The two firms will explore opportunities in India for adapting, marketing, selling, and producing inertial sensors and closed-loop inertial solutions

Paras Defence and Space Technologies has signed a Memorandum of Understanding (MoU) with Israel-based Cielo Inertial Solutions for the sale and production of inertial sensors.

 

Cielo is a global technology expert in inertial solutions and an Israeli manufacturer of closed-loop fiber optic gyroscopes (FOGs), Inertial Measurement Units (IMUs), GyroCompass, north finding systems, and inertial navigation systems (INS).

 

The companies will combine their respective capabilities in order to promote and pursue opportunities in India for the adaptation, marketing, sale, and production of inertial sensors and closed-loop FOG-based inertial solutions, Paras Defence said in a stock filing.

 

IMUs are electronic devices that measure an object's acceleration, angular velocity, and orientation.

 

An inertial navigation system is a navigation device that uses motion sensors (accelerometers), rotation sensors (gyroscopes), and a computer to compute the position and velocity (direction and speed of movement) of a moving object. 

"We are the only company in India to manufacture Infrared Optics in large quantities. Our company has been significantly contributing to most of the prestigious defence and space programs of our country," the company's website said.

 

Paras Defence and Space Technologies' share price rose 2 percent in the early trade on October 14 following the announcement. The stock rose as much as ₹721.70 apiece at 9:30 AM. It traded 1.24 per cent higher at ₹711.40 apiece, as of 10:11 AM.

 

Private defence firms to clock 16–18% revenue growth in FY26: Crisil

 

Private defence companies are expected to record revenue growth of 16–18 per cent in the current financial year, driven by higher investments and steady domestic demand, according to Crisil Ratings. The double-digit projection comes after the sector registered a compound annual growth rate (CAGR) of about 20 per cent between the financial year 2021-2022 (FY22) and FY25.

 

Profitability is likely to remain stable, with operating margins projected to stay within the 18–19 per cent range. Crisil Ratings said it had analysed more than 25 private defence firms, which together account for nearly half of the industry’s total revenues.