Company Overview
Premier Explosives Limited (BSE: 526247, NSE: PREMEXPLN) submitted its 46th Annual Report for FY25-26, disclosing mixed financial performance amid significant corporate developments and operational challenges.
Financial Performance
FY26 revenue declined 7% to ₹3,883.4 million from ₹4,174.5 million in FY25, primarily due to production constraints from the electric detonator ban. However, Profit After Tax surged 60.5% to ₹458.3 million, driven by exceptional supplier settlement income of ₹3,417.8 million included in other income. EBITDA before exceptional items decreased 33.1% to ₹388.2 million, while EBIT increased 42.4% to ₹692.8 million. EPS stood at ₹8.52, up 60.4% from FY25.
Strategic Acquisition & Ownership Change
On July 09, 2026, Apollo Micro Systems Limited executed a definitive agreement to acquire 41.33% promoter stake (22.22 million shares) for approximately ₹1,550 crore from Mrs. Shonika Prasad and Mrs. Kailash Gupta. This triggered SEBI SAST Regulations, resulting in a mandatory open offer for up to 13.98 million additional shares (26% equity) at ₹698 per share, totaling ₹975.66 crore. The transaction is subject to regulatory approvals including Competition Commission of India.
Operational Highlights & Safety Incident
The company achieved its highest-ever order book of ₹15,690 million as of May 2026, providing 4.04x revenue visibility with 95% from defense segment. However, operations were impacted by a fatal explosion at the Katepally facility on April 29, 2025, resulting in four fatalities, significant asset damage (₹709.8 lakh net book value), and ₹6.75 lakh environmental penalty. The company recognized ₹609.8 lakh as insurance claim receivable while charging ₹100 lakh to P&L.
Segment Performance & Manufacturing
Defence & Space Services contributed 81% of revenue (₹3,154 million, down 6.5%), while Commercial Explosives accounted for 19% (₹729 million, down 9.0%). Production statistics showed detonators at 4.56 million pieces (vs. 10.36 million previous year) and bulk explosives at 9,592 tonnes (increased from 8,557 tonnes). The company operates six manufacturing facilities across Telangana, Madhya Pradesh and Maharashtra.
Balance Sheet & Corporate Actions
Total assets stood at ₹4,856.1 million with improved current ratio of 1.60 (from 1.26). Borrowings were ₹323.3 million, while cash equivalents were ₹508.4 million. The board recommended final dividend of ₹0.50 per equity share (25%) for FY26, totaling ₹268.8 lakhs, subject to shareholder approval at AGM scheduled for September 30, 2026.
Subsidiaries & Regulatory Compliance
Subsidiaries include PELNEXT Defence Systems (100% owned, negative net worth ₹7.63 lakhs), Premier Wire Products (80% owned, manufacturing closed), and Global Premier Limited (49% JV). Auditors issued unmodified opinion on financial statements but qualified opinion on internal financial controls, citing material weakness in procurement controls with inadequate segregation of duties. India Ratings assigned 'IND A-/Stable/IND A2+' credit rating valid until May 2027.
Forward Outlook
The company faces risks including raw material availability, customer schedules, qualification timelines, regulatory changes, and safety events. The acquisition by Apollo Micro Systems represents a significant ownership change that could reshape corporate strategy in the defense manufacturing sector.