Financial Performance Highlights

Quarter Ended September 30, 2026 (Q2 FY27):

  • Consolidated Revenue: INR3,519 crores (vs. INR2,082 crores YoY, +69%)
  • EBITDA: INR1,021 crores (vs. INR582 crores YoY)
  • EBITDA Margin: 29.02%
  • Profit Before Tax (PBT): INR877 crores (vs. INR490 crores YoY)
  • Profit After Tax (PAT): INR650 crores (vs. INR361 crores YoY)

Half Year Ended September 30, 2026 (H1 FY27):

  • Consolidated Revenue: INR7,187 crores (vs. INR4,237 crores YoY, +70%)
  • EBITDA: INR2,045 crores (vs. INR1,146 crores YoY)
  • Profit Before Tax (PBT): INR1,789 crores (vs. INR970 crores YoY)
  • Profit After Tax (PAT): INR1,316 crores (vs. INR714 crores YoY)

Segment-wise Revenue Breakdown

Q2 FY27 Revenue Mix:

  • Domestic Explosives: 27% (down from 29% in previous quarter)
  • International Explosives: 43% (down from 46% in previous quarter)
  • Defense: 29% (up from 24% in previous quarter) at INR1,002 crores

H1 FY27 Revenue Mix:

  • Domestic Explosives: 32% (down from 35%)
  • International Explosives: 40% (down from 42%)
  • Defense: 27% (up from 22%) at INR1,935 crores

Cost Structure

Quarterly Costs:

  • Raw Material Consumption: INR1,676 crores (vs. INR988 crores YoY)
  • Employee Cost: INR266 crores (vs. INR195 crores YoY)
  • Other Expenses: INR571 crores (vs. INR347 crores YoY)
  • Interest and Finance Cost: INR55 crores (vs. INR31 crores YoY)
  • Depreciation: INR88 crores (vs. INR61 crores YoY)

Half Yearly Costs:

  • Raw Material Consumption: INR3,533 crores (vs. INR2,082 crores YoY)
  • Employee Cost: INR522 crores (vs. INR378 crores YoY)
  • Other Expenses: INR1,111 crores (vs. INR688 crores YoY)
  • Interest and Finance Cost: INR97 crores (vs. INR58 crores YoY)
  • Depreciation: INR168 crores (vs. INR117 crores YoY)

Business Segment Performance

Domestic Explosives Business:

  • Delivered healthy performance supported by demand from mining and infrastructure sectors
  • Stronger customer engagement and expanded manufacturing footprint
  • Below average monsoon in most mining markets contributed to better sales
  • Expected to show good growth in second half of FY27

International Explosives Business:

  • Maintained momentum with deeper customer relationships and improved market penetration
  • Sustained demand across key operating geographies
  • Integrated portfolio of explosives, initiating systems and technical services supports position as long-term partner
  • Focus on scaling through acquisitions and greenfield expansions

Defense Business:

  • Significant growth supported by execution of existing order book and expanding product portfolio
  • Products being indigenously developed for domestic and international markets
  • Capabilities across ammunition value chain support long-term prospects

Order Book and Pipeline

Current Order Book:

  • Total Order Book: INR20,178 crores
  • Defense Order Book: INR17,568 crores (majority from international markets)

Pending Orders:

  • Guided Pinaka: ~INR3,000 crores order in advanced negotiation stage, expected to conclude before end of FY27
  • Combined Pinaka family orders (including existing INR6,000 crores order): ~INR9,000 crores

Strategic Developments

Defense Programs:

  • Bhargavastra: Internal trials expected to complete in calendar year 2026, field trials also expected in 2026
  • 155 mm products: Facility established, deliveries of intermediate products commenced
  • Counter-drone systems: Development ongoing for Indian and international markets
  • MALE UAV: Strategic program under indigenous development
  • Missile programs: Participation in critical missile development programs with DRDO and independently

International Expansion:

  • Products supplied to 90+ countries worldwide
  • International orders regularly received from various countries
  • Government push to sell more defense products internationally
  • Pinaka rockets already being supplied to some international customers

Guidance and Outlook

FY27 Outlook:

  • Expected to surpass stated annual guidance of INR14,000 crores revenue
  • Defense revenue expected to reach ~INR4,500 crores for FY27
  • EBITDA margin expected to cross 29% for full year (H1 margin at 28.45%)
  • Second half typically stronger due to reduced monsoon impact on domestic operations

Long-term Growth Drivers:

  • Expanding manufacturing footprint
  • Disciplined capital allocation
  • Technology-led product development
  • Broader presence in domestic and international markets
  • Operational excellence and timely execution

Management Commentary

Management expressed confidence in growth trajectory based on:

  • Strong first half performance
  • Strength of order book
  • Available opportunities across business segments
  • Resilience of business model and disciplined execution
  • Benefits of strategic investments

Participants

Management Team:

  • Mr. Manish Nuwal - Managing Director and CEO
  • Mr. Suresh Menon - Executive Director
  • Mr. Milind Deshmukh - Executive Director
  • Mr. Moneesh Agrawal - Joint Chief Financial Officer
  • Mrs. Shalinee Mandhana - Joint Chief Financial Officer

Moderator:

  • Ms. Teena Virmani - Motilal Oswal Financial Services