Synopsis: Shares surged 11% after regulatory approval to resume production, supported by a strong Q1FY26 performance with revenue up 71% YoY and net profit doubling. Robust defense demand, a healthy order book, and diversified domestic and international operations underpin growth.
The shares of the prominent explosive manufacturer gained up to 11 percent in the morning session after the Telangana Pollution Control Board revoked a closure order for its factory.
With a market capitalization of Rs 3,104.71 crore, the shares of Premier Explosives Ltd were trading at Rs 577.50 per share, increasing around 6 percent as compared to the previous closing price of Rs 546.55 apiece.
Order Revoke
The shares of Premier Explosives Ltd have seen bullish movement after the Telangana Pollution Control Board revoked the closure order for the company’s Katepally factory, originally imposed due to an accident on April 29, 2025. This approval allows the resumption of production activities, marking a regulatory clearance that restores operational continuity and supports business momentum in Telangana.
Operational & financial Highlights
The company delivered strong financial performance in Q1FY26, with revenue surging 71 percent year-on-year to Rs 142 crore. Net profit more than doubled, rising 114 percent to Rs 15 crore, reflecting improved operational efficiency and healthy demand. The robust growth underscores strengthening fundamentals and consistent business momentum across key segments.
In Q1FY26, revenue surged 72 percent YoY to Rs 1,421 million, driven by an 87 percent jump in Defence & Space services at Rs 1,229 million. Commercial Explosives grew 12 percent YoY but declined 28 percent QoQ sequentially. Strong defense demand boosted overall growth, with yearly revenue up 54 percent to Rs 4,175 million, reflecting robust sector momentum and execution strength.
The company holds a robust order book of Rs 9,885 million as of June 2025, nearly 2.4 times FY25 revenue, ensuring strong revenue visibility. Defence dominates with 87 percent share, followed by explosives at 7 percent and services at 6 percent. Consistent growth highlights leadership in countermeasures and exports of fully assembled rocket motors.
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The commercial explosives segment offers a wide portfolio, including bulk explosives, cast boosters, detonators, and detonating fuses. Domestically, it serves major clients like Coal India, MOIL, SCCL, and cement manufacturers. Internationally, exports span Israel, Greece, Jordan, Turkey, Nepal, and Southeast Asia, reflecting strong global demand and diversified presence across mining and infrastructure industries.
Premier Explosives Limited operates six manufacturing facilities across India, producing both bulk and specialized explosives. Bulk explosives are made in Madhya Pradesh, Maharashtra, and Telangana. Its Peddakandukur plant (Telangana) focuses on detonators, boosters, and ammonium perchlorate, while the Katepally facility (Telangana) produces solid propellants, HMX/RDX, and defense munitions, including PSOM-XL for satellites and strategic defense applications.
Premier Explosives Limited is a leading enterprise in the Indian explosives, defence, and aerospace sectors, transforming visionary ideas into groundbreaking realities. The company’s strategy is driven by a focus on indigenisation, enabling it to lead the production of high-energy materials for defence and space applications.
Written by Abhishek Singh
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