Premier Explosives Ltd (PREMEXPLN)
🎯 Key Takeaways
- Premier Explosives Ltd is in a strategic transition phase, leveraging its defense-focused order book and recent acquisition by Apollo Micro Systems to drive medium-term growth after a short-term earnings dip. The company is navigating supply chain headwinds but maintains strong execution visibility through its backlog and capacity expansion plans.
- Revenue grew 15% QoQ to ₹103 in Q1FY27.
- ⚠️ Execution risk in scaling up RDX/HMX production and achieving export revenue targets amid global supply chain constraints.
📖 The Story
Premier Explosives Ltd is in a strategic transition phase, leveraging its defense-focused order book and recent acquisition by Apollo Micro Systems to drive medium-term growth after a short-term earnings dip. The company is navigating supply chain headwinds but maintains strong execution visibility through its backlog and capacity expansion plans.
📰 What's Happening
In Q1 FY27 (reported August 20, 2026), revenue declined 28% YoY to INR102.6 crores due to global supply chain delays and elevated raw material costs, with operating profit down 80% to INR4.8 crores and net profit down 80% to INR3 crores. However, the company holds a robust order book of INR1,393 crores, with 94% from the defense sector. Management reaffirmed its FY27 revenue target of INR600-700 crores and highlighted the strategic acquisition by Apollo Micro Systems as a catalyst for enhancing defense electronics integration and export opportunities. Capacity expansion, including RDX/HMX production, is on track for commissioning by September 2026, with export revenue expected to reach INR200-300 crores in FY27.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 142 | 76 | 81 | 89 | 103 |
| Operating Profit | 18 | 4 | 9 | -3 | 3 |
| OPM % | 12.6% | 4.7% | 10.6% | -3.6% | 2.9% |
| Net Profit | 15 | 18 | 6 | 7 | 3 |
| EPS | ₹2.85 | ₹3.32 | ₹1.13 | ₹1.22 | ₹0.57 |
The sequential revenue recovery is underway, with Q1 FY27 revenue down sharply but improving from the previous quarter's INR89 crores, while margins remain pressured by external cost factors. Despite the 80% drop in operating profit, the company's order book provides strong revenue visibility, and management expects margin recovery and sequential improvement in gross margins through better product mix and execution of capacity expansion.
🔮 Management Outlook & What's Next
Management has reaffirmed its FY27 revenue guidance of INR600-700 crores and expects EBITDA margins of 15-20%, with gross margins improving sequentially due to operational efficiencies and capacity additions. They also highlighted ongoing export license approvals and the strategic benefits of the Apollo Micro Systems acquisition in accelerating defense electronics integration and export growth.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 11 | 11 | 11 | 11 |
| Reserves | 225 | 235 | 265 | 278 |
| Borrowings | 91 | 41 | 28 | 32 |
| Total Liabilities | 514 | 528 | 499 | 483 |
| Fixed Assets | 192 | 199 | 182 | 182 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 514 | 528 | 499 | 483 |
The balance sheet shows a stable capital structure with low debt (Borrowings of INR32 crores as of March 2026) and growing reserves, indicating prudent capital management. Despite declining profits, the company maintains a strong asset base of INR483 crores, supporting its investment in capacity expansion and strategic initiatives without significant leverage pressure.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +118 |
| Investing | -11 |
| Financing | -34 |
| Net Cash Flow | +73 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 41.3% | 41.3% | 41.3% | 41.3% |
| FII | 1.1% | 0.9% | 1.2% | 1.7% |
| DII | 9.1% | 9.2% | 9.2% | 9.4% |
| Public | 37.5% | 37.3% | 36.3% | 34.2% |
| # Shareholders | 96,045 | 95,404 | 92,900 | 84,316 |
Institutional interest is gradually increasing, with FII holding rising from 0.9% in Q3FY26 to 1.67% in Q1FY27, while DII holdings remain stable around 9%. Promoter holding remains steady at 41.33%, and the shareholder base has expanded to 84,316, suggesting improving investor confidence despite short-term volatility.
⚖️ Peer Comparison — Aerospace & Defence
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| HAL | 3.22 L Cr | 34.5 | 30.3% | 22.7% | 0.00 |
| BEL | 3.00 L Cr | 48.9 | 34.1% | 25.5% | 0.00 |
| SOLARINDS | 1.81 L Cr | 90.9 | 38.0% | 32.7% | 0.23 |
| MAZDOCK | 1.00 L Cr | 35.0 | 35.3% | 27.6% | 0.05 |
| BDL | 45,820 | 88.0 | 17.8% | 13.0% | 0.00 |
| COCHINSHIP | 38,752 | 57.0 | 18.7% | 12.2% | 0.01 |
| GRSE | 29,002 | 36.2 | 52.1% | 38.5% | 0.00 |
| ITI | 25,848 | 98.0 | 16.4% | 20.7% | 0.95 |
| DATAPATTNS | 25,278 | 94.3 | 220.2% | 212.6% | 0.34 |
| MTARTECH | 21,154 | 158.5 | 24.1% | 18.3% | 0.24 |
⚠️ Risk Factors
1. Execution risk in scaling up RDX/HMX production and achieving export revenue targets amid global supply chain constraints. 2. Margin pressure from elevated raw material costs and delayed dispatches could persist in the near term. 3. Dependence on defense sector order book execution and timing of export approvals introduces execution and regulatory risks. 4. Integration risks associated with the Apollo Micro Systems acquisition could delay anticipated synergies.
📋 Recent Filings
-
🔴 Financial Results 20 August 2026Premier Explosives reported Q1 FY27 revenue of INR102.6 crores, down 28% YoY, due to global supply chain delays and elevated raw material costs. Opera...
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🔴 Corporate Action 13 August 2026Premier Explosives announced a record date of September 23, 2026, for its 46th Annual General Meeting, setting eligibility for dividend payments and v...
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🟡 Board Meeting 13 August 2026Premier Explosives Limited announced the outcome of its board meeting held on August 13, 2026, approving unaudited standalone and consolidated financi...
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Announcement 13 August 2026Premier Explosives Limited reported a sharp decline in Q1FY27 financials, with revenue down 28% YoY to Rs 1,026 Mn and PAT falling 80% YoY to Rs 30.3 ...
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Announcement 11 August 2026Premier Explosives Limited announced a conference call on August 14, 2026 at 12:30 PM IST to discuss Q1 FY27 financial results, inviting analysts and ...
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🟡 Board Meeting 31 July 2026No summary available
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Announcement 20 July 2026No summary available
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Announcement 9 July 2026No summary available
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share transfer 4 July 2026Premier Explosives Limited received SEBI Regulation 74(5) certificates from KFin Technologies Limited, the company's Registrar and Share Transfer Agen...
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🟡 concall transcript 30 June 2026Premier Explosives reported a 28% YoY revenue decline in Q1 FY27 to INR102.6 crores due to global supply chain disruptions and delayed dispatches, tho...
🧠 Analyst's Read
Premier Explosives is navigating a temporary earnings trough but remains positioned for long-term growth supported by a strong defense order backlog, strategic acquisition, and capacity expansion. Investors should monitor execution of export revenue targets and margin recovery trends in upcoming quarters.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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