Premier Explosives shares jump 15% as Q1 profit more than doubles, order book swells

Despite the surge, Premier Explosives' stock price is still down almost 11 percent in the last month.

Shares of Premier Explosives Ltd surged over 15 percent to Rs 492 in morning trade on Wednesday, August 13, after the defence and space products maker delivered a sharp jump in its June-quarter earnings and expanded its order pipeline.

Net profit for the quarter soared 110 percent year-on-year to Rs 15 crore, compared with Rs 7 crore a year earlier, aided by strong revenue growth. Revenue rose nearly 72 percent to Rs 142 crore from Rs 83 crore, with defence and space contributing 86 percent and bulk explosives accounting for the remaining 14 percent.

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EBITDA or earnings before interest, tax, depreciation and amortisation came in at Rs 20.9 crore, up 35 percent from the previous year. However, margins narrowed by 400 basis points to 14.68 percent, hurt by higher material costs, which climbed to 66 percent of sales from 41 percent last year, even as other expenses dropped to Rs 9 crore from Rs 18 crore.

The company’s order book swelled to Rs 988.5 crore at the end of the June quarter, up 32 percent from Rs 750 crore at the close of FY25. Defence orders made up 87 percent of the backlog, with explosives and services comprising 7 percent and 6 percent, respectively.

Also read: Bharat Dynamics shares surge 4% after stellar Q1: Should you buy, sell, or hold?

At about 10 am, shares of the company were trading at Rs 487, higher by 14 percent from the last close on the NSE. Despite the surge, Premier Explosives' stock price is still down almost 11 percent in the last month.

Premier Explosives’ board also cleared plans to raise Rs 300 crore to support growth initiatives.

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