Synopsis: The decline in the share of the company since its earnings came to a halt after it secured an order worth Rs.73.11 crore.
The share of this small cap company which belongs to the explosives industry, engaged in the manufacturing of industrial explosives and detonators, surged after receiving an export order.
With the market capitalization of Rs. 2,860.10 crore, Premier Explosives Ltd’s shares made a high on Tuesday of Rs. 545.40 per share, a surge of 3.6 percent from the previous close price of Rs. 526.15 per share. It has delivered a return of 1,846 percent over the past five years.
Significant order
The company received export order worth Rs. 73.11 crore, from an international client for the supply of defence products, to be executed within a period of 12 months, the order being a non-party related transaction.
In Q2 FY26, the order book stood at Rs. 1,297.1 crore, i.e ~3.1x of FY25 revenue. Segment split of the order book, 90 percent from defence, 6 percent from explosives and 4 percent from services. With business segment revenue breakup as of H1 FY26, Defence and space contributed 86 percent and Bulk explosive contributed 14 percent to the revenue.
About the company
Premier Explosives Ltd (PEL) is a leading manufacturer of high energy materials for defence, aerospace and mining sectors. It also undertakes operation and maintenance (O&M) services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur under the umbrella of DRDO.
The company’s product portfolio consists of Bulk explosives, cast boosters, detonators and detonating fuse in the Commercial explosives’ business segment for clients in the mining & infra industry.Followed by Propellant(composite), pyros, explosive composition, counter measures, O&M services and more in Defence & Space business segment.
Financial highlights, revenue from operations declined by 20.1 percent to Rs.75.58 crore in Q2 FY26 from Rs.94.6 crore in Q2 FY25. EBITDA declined by 60.3 percent to Rs. 6.61 crore in Q2 FY26 from Rs.16.63 crore in Q2 FY25. Accompanied by net profit growth of 113 percent YoY to Rs. 17.8 crore, which includes other income of Rs. 23.07 crore, purchase discount pertaining to material purchased in FY25 but recognized by the firm in the current quarter
|Written by Gourav Pratap Singh
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