Synopsis:
Shares surged after winning a ₹190 crore export order for defense explosives, boosting growth prospects. Despite recent profit and revenue declines, a strong order book, global contracts, and strategic joint ventures support long-term expansion, with management maintaining cautious optimism amid defense sector volatility.
The shares of the industrial explosives manufacturer gained up to 10 percent after the company bagged a significant work order for the manufacturing and supply of defence explosives worth Rs 190 crore.
With a market capitalization of Rs 2,425.17 crore, the shares of Premier Explosives Ltd were trading at Rs 451.10 per share, increasing around 5.66 percent as compared to the previous closing price of Rs 426.95 apiece.
The shares of Premier Explosives Ltd have seen positive movement after receiving an export order from an International Entity for a total consideration of USD 21,750,000, i.e., approx. Rs 190.07 Crore, for the manufacture and supply of Defence Explosives, to be delivered within a period of 2 years.
The company reported weaker financial performance, with revenue falling 15 percent from Rs 86.79 crore in Q4FY24 to Rs 74.08 crore in Q4FY25. Net profit also declined sharply by 43 percent, dropping from ₹6.63 crore to ₹3.70 crore, reflecting pressure on both sales and profitability.
The company holds a strong ₹750 crore order book, 1.8x FY25 revenue, with defence dominating at ₹610 crore. Execution is planned over 18 months, supported by steady inflows to maintain an ₹800 crore pipeline. Exports worth ₹100 crore, mainly industrial explosives to Thailand and the Philippines, further diversify growth opportunities.
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The company strengthened its defence footprint with a March 2025 JV with Global Munition Limited for defense and aerospace manufacturing. Key Q4FY25 wins include BrahMos Aerospace orders for booster propellant casting and assembly, alongside international contracts for rocket motor design and defense explosives supply, boosting growth visibility and sector positioning.
The company targets ₹600 crore revenue in FY26 with a long-term goal of ₹1,000 crore by 2030. EBITDA margins are guided at 18–20% medium term, though Q4 stood at 12.9 percent.. Management maintains a cautious outlook, citing order-driven dynamics and variability in defense procurement cycles.
Management remains optimistic, backed by a solid order book, a favorable policy environment, and resilient operations post-incident. However, it maintains a cautious stance on long-term projections, acknowledging the project-based nature of the business and inherent unpredictability in defense procurement cycles that could impact growth consistency.
Premier Explosives Ltd caters to the mining and infrastructure industries with key domestic clients like Coal India, MOIL, SCCL, and Neyveli Lignite. It has a strong international footprint, exporting products to countries including Israel, Greece, Jordan, Turkey, Nepal, Thailand, the Philippines, Indonesia, Djibouti, and others.
Premier Explosives Limited is primarily engaged in the manufacture of high-energy materials and allied products for the defense, space, mining, and infrastructure industries. The Company’s geographical segments include India and the Rest of the world.
Written by Abhishek Singh
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