Premier Explosives Limited submitted an investor presentation detailing its financial and operational performance for the first quarter ended June 30, 2026 (Q1FY27).

Financial Performance - Q1FY27

Revenue Performance:

  • Q1FY27 standalone revenue declined 27.8% Year-over-Year (YoY) to ₹1,026 million from ₹1,421 million in Q1FY26
  • Revenue increased 15.0% Quarter-over-Quarter (QoQ) from ₹892 million in Q4FY26
  • Full Year FY26 revenue stood at ₹3,883 million, representing a 7.0% decline from ₹4,175 million in FY25

Segment-wise Revenue Breakdown (Q1FY27):

  • Commercial Explosives: ₹233 million (21.4% YoY growth from ₹192 million in Q1FY26)
  • Defence & Space services: ₹793 million (35.5% YoY decline from ₹1,229 million in Q1FY26)

Profitability Metrics:

  • EBITDA: ₹58.8 million, representing a 71.9% YoY decline from ₹208.8 million in Q1FY26
  • EBITDA Margin: 5.7%, contracting 896 basis points YoY from 14.7% in Q1FY26
  • EBIT: ₹47.9 million, down 79.9% YoY from ₹238.6 million
  • EBIT Margin: 4.7%, contracting 1,212 basis points YoY from 16.8%
  • Profit Before Tax (PBT): ₹41.0 million, down 82.0% YoY from ₹227.7 million
  • Profit After Tax (PAT): ₹30.3 million, down 80.2% YoY from ₹153.2 million
  • PAT Margin: 3.0%, contracting 782 basis points YoY from 10.8%
  • EPS: ₹0.6, down 67.6% YoY from ₹2.9
  • Cash PAT (Depreciation + PAT): ₹59.0 million

Other Financial Items:

  • Other Income: ₹17.8 million
  • Finance Cost: ₹6.9 million
  • Depreciation: ₹28.7 million
  • Tax Expense: ₹10.7 million
  • No exceptional items reported for the quarter

Balance Sheet Highlights (Standalone as of March 2026):

  • Equity Share Capital: ₹107.5 million (unchanged from March 2024 and March 2025)
  • Other Equity: ₹2,782.8 million (increased from ₹2,095.1 million in March 2024)
  • Total Liabilities: ₹4,856.1 million
  • Net Fixed Asset Block: ₹1,790.7 million
  • Capital Work in Progress (CWIP): ₹263.9 million (significant increase from ₹28.5 million in March 2025)
  • Current Assets: ₹2,581.2 million

Operational Highlights

Order Book Position:

  • Strong order book of ₹13,930 million as of the presentation date
  • 94% of order book contribution from Defence segment
  • Order book represents approximately 3.59x of FY26 revenue

Business Segments:

The company operates in two main segments:

1. Commercial Explosives: Serving mining and infrastructure industries with products including bulk explosives, cast boosters, detonators, and detonating fuse

2. Defence & Space Services: Manufacturing products for defence and space applications including propellants, pyros, explosives/compositions, counter-measures, and providing operation & maintenance services

Manufacturing Infrastructure:

  • 6 manufacturing facilities located in Telangana, Madhya Pradesh, and Maharashtra
  • Facilities produce bulk explosives, accessories, defence explosives, detonators, detonating fuse, pyro devices, solid propellants, PETN, Ammonium Perchlorate, HMX/RDX, rocket missiles, ammunition, mines, warheads, and bombs

Human Resources:

  • Team strength of over 850 employees
  • Includes approximately 100 engineers/scientists
  • About 550 people trained in propellant and pyrotechnic products

Growth Opportunities and Strategy

The presentation outlines several growth opportunities:

  • Enhancing product offerings including chaffs & flares, air target imitators, air-to-air and air-to-surface missiles, missile refurbishment, canopy severance systems, surface-to-air missiles, UAVs/drones/loitering missiles, warheads, anti-personnel and anti-armoured vehicle mines, and medium/large caliber ammunition
  • Leveraging government's focus on "Make In India" in defence with record budget backing of ₹6,81,000 crore defence budget (FY26) and ₹1,80,000 crore capital outlay
  • Targeting defence production scale-up to ₹3,00,000 crore by FY29 from current ₹1,50,000 crore (FY25)
  • Export acceleration targeting ₹50,000 crore by 2029 from current ₹23,622 crore (FY25)
  • Benefiting from import substitution drive with 5 positive indigenisation lists covering 5,500+ items under import embargo

Management and Governance

The presentation highlights the leadership team including:

  • Dr. A. N. Gupta, Non-Executive Chairman
  • T V Chowdary, Managing Director (Chemical engineer with over 40 years experience)
  • Y. Durga Prasad Rao, Director Operations (Mechanical engineer with 36 years experience)
  • Board of Directors includes Dr. (Mrs.) Kailash Gupta, Dr. D K Nanda, Lt.Gen.P R Kumar (Retd.), CA. Seshagiri Rao, Dr. V G Sekaran, and Shonika Prasad

Technological Capabilities

  • Collaboration with Gulbarga University, IIT Madras and BITS Pilani for research in high energy materials
  • Developed solid propellants for various missiles including combustion-stable propellants for LRSAM, MRSAM, ASTRA
  • Laboratories certified by DSIR and accredited by NABL
  • Participation in India's prestigious missile programs including Akash, MRSAM, LRSAM, Astra, and Brahmos

Rationale for Performance

The company attributed the quarterly performance challenges to:

  • Delays in dispatches and project execution
  • Ongoing global headwinds and supply chain disruptions
  • Elevated raw material prices amid prevailing global market conditions

The company expects execution momentum to improve in coming quarters as these challenges gradually ease.