Synopsis:
Premier Explosives Limited received a ₹7.83 crore order from the Ministry of Defence for supplying countermeasures, which is to be completed within 12 months.
This Small-cap Defence stock, engaged in manufacturing explosives, detonators, and solid propellants for defence, space, mining, and infrastructure, jumped 4 percent after receiving an order worth Rs. 8 crore from the Ministry of Defence, Government of India.
With a market capitalization of Rs. 2,935.36 crores, the share of Premier Explosives Limited has reached an intraday high of Rs. 551.85 per equity share, rising nearly 4.14 percent from its previous day’s close price of Rs. 529.90. Since then, the stock has retreated and is currently trading at Rs. 546 per equity share.
What is the news?
Premier Explosives Limited has announced that it received a new order worth Rs. 7.83 crore from the Ministry of Defence, Government of India. The order is for the supply of Counter Measures, which are to be delivered within a period of 12 months. This highlights the company’s continued role in supporting the defence sector through its specialized products.
The order has been placed by a domestic entity. This deal further strengthens Premier Explosives’ business pipeline and reflects the government’s confidence in the company’s capabilities to meet critical defence requirements.
Order Book
The company’s order book increased from Rs. 750 crore in March 2025 to Rs. 988.5 crore in March 2025, which is 2.4x the FY25 revenue. The order breakdown for March 2025 shows that 87 percent of the order book is from Defence, 7 percent from Explosives, and 6 percent from Services, indicating a strong emphasis on the Defence segment.
Company Overview
Premier Explosives Limited was started in 1980 by Dr. A.N. Gupta. The company makes high-energy materials and related products. Its business covers many areas, such as mining, infrastructure, defence, space, and homeland security, where its products are used for important applications.
The company makes bulk and packaged explosives, detonators, and fuses. It also develops solid propellants used in missiles such as Akash and Astra. In addition, it produces pyro devices like chaff, infrared flares, and explosive bolts. Premier Explosives also helps run and maintain solid propellant plants for major organizations, including ISRO and DRDO.
Premier Explosives Limited works closely with leading clients in the defence and space sectors. Some of its key partners include Bharat Dynamics Limited, Bharat Electronics, Advanced Systems Laboratory (ASL), ISRO, and the Electronics Corporation of India.
Premier Explosives Limited runs seven manufacturing plants in different states, such as Telangana, Madhya Pradesh, Maharashtra, and Tamil Nadu. These well-placed facilities help the company produce and deliver defence explosives and related products quickly and efficiently.
Recent quarter results
Coming into financial highlights, Premier Explosives Limited’s revenue has increased from Rs. 83 crore in Q1 FY25 to Rs. 142 crore in Q1 FY26, which has grown by 71.08 percent. The net profit has also grown by 114.29 percent from Rs. 7 crore in Q1 FY25 to Rs. 15 crore in Q1 FY26. Premier Explosives Limited’s revenue and net profit have grown at a CAGR of 27.97 percent and 79.67 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 17 percent and 12.3 percent, respectively. Premier Explosives Limited has an earnings per share (EPS) of Rs. 5.34, and its debt-to-equity ratio is 0.17x.
Written By – Nikhil Naik
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