Premier Explosives Q1 profit more than doubles, stock jumps 20%

Secunderabad-basedPremier Explosivesreported a strong set of numbers for Q1 FY26, with revenue rising 71.6% year-on-year to ₹142 crore, led by robust execution in the defence and space segments. Net profit surged 110% YoY to ₹15 crore during the April-June period.

At the operational level, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 35% to ₹20.9 crore, though margins contracted by 400 bps to 14.7% due to a sharp increase in material costs to 66% of sales compared with 41% in the same quarter last year. Other expenses dropped to ₹9 crore from ₹18 crore in Q1 FY25.

The company’s order book at the end of the quarter stood at ₹988.5 crore, up 32% from ₹750 crore at the end of FY25. Defence accounted for 87% of the total, explosives 7%, and services 6%. Revenue contribution from the defence and space segment rose to 86% in the quarter.

On the back of the strong Q1 earnings, the stock continued to trade with very strong gains in today’s (August 13) trading session, supported by strong volumes, and closed at₹512.25, up 20% on the BSE.

Key Developments in Q1

• Secured new contracts from BrahMos Aerospace for propellant casting and booster assembly.
• Won overseas orders for rocket motor design and development, supply of defence products, and commercial explosives.
• Participated in requests for proposals worth around ₹700 crore; decisions are awaited.

Outlook

The company has maintained its FY26 revenue guidance at over ₹600 crore, with expectations of margin improvement from Q2 onwards as the bulk of defence product dispatches are scheduled for the next quarter. The company continues to target revenue of ₹1,000 crore by FY30.

At the end of FY25, the company had said that the orderbook would be maintained at around ₹800 crores in FY26. They had also guided for EBITDA margins to be in the range of 18-20%, although margins may drop to 15% in FY26.

Expansion plans ahead

The board has approved a ₹300 crore fund raise through either a QIP or a preferential issue. Of that, around ₹200 crore will be allocated towards capex, while the remaining ₹100 crore will be used for debt repayment and general corporate purposes.