The shares of a defence-focused company, engaged in manufacturing industrial explosives and detonators, and offering O&M services for ISRO and DRDO solid propellant plants, rose over 3% after it announced a major amendment to a purchase order.
With a market capitalization of Rs 2,986 Crores, the share price of Premier Explosives Limited was trading over 3% up to hit an intraday high of Rs 571.70 per share from its day low price of Rs 553.55 per share.
What’s the News
Premier Explosives Limited announced an amendment to an existing international order for the manufacture and supply of defence products, with the contract value increased from Rs 6.62 crore to Rs 18.29 crore.
The upgraded order is expected to be executed over the next six months. This development underscores the company’s strong presence in global defence manufacturing and reinforces its growing international footprint.
About the Company
Premier Explosives Limited (PEL), established in 1980, is a leading Indian manufacturer of industrial explosives, detonators, and defence products. It was the first in India to produce explosives and detonating fuses with indigenous technology and the first in the world to commercially manufacture NHN-based safer and greener detonators.
PEL has seven manufacturing facilities across Telangana, Maharashtra, Tamil Nadu, and Madhya Pradesh, and holds a strong order book of Rs 750 crore (~1.8x FY25 revenue).
PEL is also the first private Indian company to manufacture solid propellants for key missile programs like Akash, Astra, and LRSAM. It provides O&M services for ISRO’s Sriharikota Centre and DRDO’s Solid Fuel Complex. Backed by a DSIR-recognized R&D unit and collaborations with IIT Madras, PEL plays a critical role in strengthening India’s defence and aerospace ecosystem.
The company reported a revenue of Rs 417 crore in FY25, up by 53.3 percent from its FY24 revenue of Rs 272 crore. Coming to its profitability, the company reported a net profit rise to Rs 29 crore in FY25 from Rs 28 crore in FY24. It maintains a healthy financial profile with a ROCE of 16.9% and ROE of 12.2%, reflecting efficient capital and equity utilization.
Written By Rohan Pandey
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