Synopsis: This defence stock secured a Rs. 429.56 crore order from the Ministry of Defence for Chaffs and Flares supply to the Indian Air Force, to be delivered in 12 months, boosting its defence manufacturing presence.
This is engaged in the manufacturing of industrial explosives and detonators and it also undertakes operation and maintenance (O&M) services of solid propellant plants is now in the focus after securing an order worth Rs. 429.56 cr.
With market capitalization of Rs. 3,378 cr, the shares of Premier Explosives Limited are closed at Rs. 629.95 per share, increasing nearly 7% in today’s market session making a high of Rs. 646.65, from its previous close of Rs. 604.70 per share.
About the order
Premier Explosives Limited announced that it has received significant orders from the Ministry of Defence, Government of India, for the supply of Chaffs and Flares to the Indian Air Force, valued at Rs. 429.56 crore (including GST).
The order is to be executed within 12 months, further strengthening the company’s position as a key supplier of defence-grade explosive materials and countermeasure systems.
The order is from the Indian government and is completely domestic, with no involvement of related parties or company promoters. This deal highlights Premier Explosives growing role in supporting India’s defence sector and the country’s goal of making more defence equipment within India.
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About the company
Premier Explosives Limited is a leading Indian company specializing in the manufacture of high-energy materials, including explosives, propellants, and defence systems. Established in 1980 and headquartered in Secunderabad, Telangana, the company serves both defence and commercial sectors, supplying products like solid propellants, pyrotechnics, detonators, and missile systems. It is a trusted supplier to the Indian Armed Forces, ISRO, and DRDO, contributing significantly to India’s indigenous defence and aerospace capabilities.
The company has shown strong financial performance, marked by a significant reduction in debt and consistent profit growth, delivering a robust 37.6% CAGR over the past five years. Operational efficiency has improved notably, with debtor days decreasing from 76.0 to 33.3 days.
The company’s return ratios remain healthy, with a Return on Capital Employed (ROCE) of 16.9% and a Return on Equity (ROE) of 12.2%. Sales of the company increased from Rs. 74 cr in Q4FY25 to Rs. 142 cr in Q1FY26. Operating profit rose to Rs. 21 cr to Rs. 10 cr. Net profit significantly increased from Rs. 4 cr to Rs. 15 cr over the same period.
Written by Manideep Appana
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