Paras Defence And Space Technologies (NSE:PARAS) Effective Interest Rate on Debt %: 25.57% (As of Mar. 2026)

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NSE:PARAS Paras Defence And Space Technologies Ltd NSE:PARAS
83 GF Score
Price ₹1,223.10
GF Value ₹846.79
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Paras Defence And Space Technologies Effective Interest Rate on Debt %?

Paras Defence And Space Technologies NSE:PARAS +0.04% 83 Effective Interest Rate on Debt % is 25.57% as of Mar. 2026. GuruFocus rates NSE:PARAS with a GF Score™ of 83/100 and a GF Value™ of ₹846.79 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Paras Defence And Space Technologies's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₹69 Mil. Paras Defence And Space Technologies's average total debt for the quarter that ended in Mar. 2026 was ₹271 Mil. Therefore, Paras Defence And Space Technologies's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 25.57%.


Paras Defence And Space Technologies  (NSE:PARAS) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Paras Defence And Space Technologies Effective Interest Rate on Debt % Related Terms


Paras Defence And Space Technologies Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Paras Defence And Space Technologies's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Paras Defence And Space Technologies Effective Interest Rate on Debt % Chart

Paras Defence And Space Technologies Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 10.35 21.80 8.81 14.74 18.24

Paras Defence And Space Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.64 13.82 8.58 6.43 25.57

NSE:PARAS vs SPCX, GE, RTX: Effective Interest Rate on Debt % Comparison

For the Aerospace & Defense subindustry, Paras Defence And Space Technologies's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Paras Defence And Space Technologies Effective Interest Rate on Debt % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Paras Defence And Space Technologies's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Paras Defence And Space Technologies's Effective Interest Rate on Debt % falls into.


NSE:PARAS
83GF Score
Paras Defence And Space Technologies Ltd NSE:PARAS
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Paras Defence And Space Technologies Effective Interest Rate on Debt % Calculation

Paras Defence And Space Technologies's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -46.6/( (240.231+270.6)/ 2 )
=-1  *  -46.6/255.4155
=18.24 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=12.799 + 227.432
=240.231

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6.8 + 263.8
=270.6

Paras Defence And Space Technologies's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -69.2/( (0+270.6)/ 1 )
=-1  *  -69.2/270.6
=25.57 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6.8 + 263.8
=270.6

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 25.57% mean?
Paras Defence And Space Technologies (NSE:PARAS) has a Effective Interest Rate on Debt % of 25.57% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Paras Defence And Space Technologies and its competitors.
Is Paras Defence And Space Technologies' Effective Interest Rate on Debt % too high?
Paras Defence And Space Technologies' current Effective Interest Rate on Debt % is 25.57%. Overall, Paras Defence And Space Technologies has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paras Defence And Space Technologies' Effective Interest Rate on Debt % compare to SPCX and GE?
Paras Defence And Space Technologies' Effective Interest Rate on Debt % of 25.57% can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Aerospace & Defense company?
A good Effective Interest Rate on Debt % depends on the Aerospace & Defense industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Paras Defence And Space Technologies and its competitors. Paras Defence And Space Technologies's current Effective Interest Rate on Debt % is 25.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paras Defence And Space Technologies stock overvalued right now?
Based on GuruFocus' analysis, Paras Defence And Space Technologies (NSE:PARAS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹846.79, compared to a current price of ₹1,223.10 — trading 44.4% above its estimated fair value. The current Effective Interest Rate on Debt % is 25.57%. Paras Defence And Space Technologies' overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Paras Defence And Space Technologies (NSE:PARAS), the current Effective Interest Rate on Debt % is 25.57% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Paras Defence And Space Technologies (NSE:PARAS) Overvalued in 2026?

Based on GuruFocus' analysis, Paras Defence And Space Technologies stock appears to be overvalued. The current stock price of ₹1,223.10 is trading 44.4% above its estimated GF Value™ of ₹846.79. GuruFocus considers Paras Defence And Space Technologies to be Significantly Overvalued.

Key valuation signals for NSE:PARAS:

  • Effective Interest Rate on Debt %: 25.57%
  • GF Value™: ₹846.79 vs. price of ₹1,223.10 (44.4% above fair value)
  • GF Score™: 83/100 with 4 warning signs

No single metric tells the full story. See the NSE:PARAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Paras Defence And Space Technologies Business Description

Other Exchanges 543367:India
Address D-112, TTC Industrial Area, MIDC, Nerul, Navi Mumbai, MH, IND, 400706
Paras Defence And Space Technologies Ltd is engaged in the designing, developing, manufacturing, and testing of various defense and space engineering products and solutions. The company's product portfolio includes lens barrels, rugged networking and communication equipment, multifold lenses, metal mirrors, submarine winches, and mill grade control systems among others. Its operating segments are; Optics & Optronic Systems; and Defence Engineering. The maximum revenue for the company is derived from its Optics and Optronic Systems segment. Geographically, the firm generates a majority of its revenue from its customers within India and the rest from outside India through exports.
83GF Score

Get the complete analysis for NSE:PARAS

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,223.10
Price
₹846.79
GF Value