Premier Explosives Q2 FY27: PAT ₹3 & Rev ₹102.6 Cr

Investor Takeaways

Revenue declined 28% YoY to ₹102.6 Cr in Q1 FY27

Net profit fell 80% YoY to ₹3 Cr

Order book stands at ₹1,393 Cr, with 94% from defense sector

Targeting FY27 revenue of ₹600-700 Cr with margin improvement expected

Strategic acquisition by Apollo Micro Systems highlighted as growth catalyst

Overall Tone: Cautious based on the numbers only.

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹102.6 Cr	-28%
Net Profit	₹3 Cr	-80%
EBIT	₹4.8 Cr	-80%
EBIT Margin	4.7%	N/A
EPS	[amount not verified]	-80%

*Note: EPS not explicitly provided but implied from net profit context; exact figure not in data

What Changed

Premier Explosives reported a significant contraction in Q1 FY27 financial performance, with revenue declining 28% YoY to ₹102.6 Cr due to global supply chain delays and elevated raw material costs. Operating profit dropped sharply by 80% to ₹4.8 Cr, resulting in an EBIT margin of 4.7%, while net profit fell 80% to ₹3 Cr. This performance contrasts sharply with the previous four quarters, where the company demonstrated consistent profitability: Q3FY25 revenue of ₹165.92 Cr (OPM 9.31%), Q2FY25 revenue of ₹94.6 Cr (OPM 17.58%), Q1FY25 revenue of ₹82.86 Cr (OPM 18.72%), and Q4FY24 revenue of ₹86.79 Cr (OPM 17.39%). The current quarter's margin compression to 4.7% marks a significant deviation from historical operating efficiency. Despite the short-term headwinds, the company maintains a robust order book of ₹1,393 Cr, with 94% originating from the defense sector, providing visibility into future revenue streams. Management expects margin improvement and sequential revenue recovery in upcoming quarters, targeting FY27 revenue of ₹600-700 Cr. The strategic acquisition by Apollo Micro Systems is positioned as a catalyst for long-term growth, though execution risks remain in the near term.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Premier Explosives Limited	88.54	N/A	N/A	2,813.32
Solar Industries India Limited	132.27	N/A	N/A	1,56,674.48
Pidilite Industries Limited	75.73	N/A	N/A	1,49,378.89
SRF Limited	69.51	N/A	N/A	79,723.46

Premier Explosives trades at a P/E ratio of 88.54, which is lower than Solar Industries (132.27) and Pidilite (75.73), but higher than SRF (69.51), suggesting market expectations may be priced at a premium relative to some peers despite current earnings volatility.

Risks & Concerns

Margin compression to 4.7% EBIT margin in Q1 FY27, down from 17.39% to 18.72% in prior quarters

80% YoY decline in net profit indicates significant earnings pressure

Reliance on defense sector for 94% of order book creates concentration risk, though this is noted as a strength in the filing

No specific risks beyond the operational headwinds and margin decline were highlighted in the filing.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	165.92	9.23	9.31
Q2FY25	94.6	8.43	17.58
Q1FY25	82.86	7.33	18.72
Q4FY24	86.79	6.78	17.39

The current quarter's performance (₹102.6 Cr revenue, ₹3 Cr net profit, 4.7% OPM) represents a marked decline from the previous four quarters, which showed stable revenue around ₹80-165 Cr and OPM consistently above 9%. The sharp drop in profitability and margin in Q1 FY27 is an outlier compared to the company's recent quarterly trajectory.

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About Premier Explosives Limited (PREMEXPLN)

Capital Goods · Aerospace & Defence · Listed on NSE

Market Cap: ₹3,566.79 Cr P/E: 106.3 ROE: 13.7% ROCE: 17.0% Div Yield: 0.08%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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