Premier Explosives Limited (NSE: PREMEXPLN) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
T V Chowdary — Managing Director
B M Vijay Kumar — Chief Financial Officer
Analysts:
Unidentified Participant
Akhilesh Gandhi — Analyst
Nishita — Analyst
Dipen Vakil — Analyst
Yash Rawat — Analyst
Naman — Analyst
Ketan Gandhi — Analyst
Rahul Agarwal — Analyst
Saurabh Kumar — Analyst
Santanu Chatterjee — Analyst
Dev Chaudhary — Analyst
B.N. Rao — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1 FY26 conference call hosted by Premier Explosives Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star than zero on your touchstone phone. Please note that this call is being recorded with this. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar IR. Thank you. And over to you sir.
Akhilesh Gandhi — Analyst
Thank you, Samaya. Good morning everyone. I, on behalf of Stellar Investor Relations welcome you all to the Premier Explosives Ltd. Quarter one FY26 earnings conference call. We shall be sharing the key operating and financial highlights for the first quarter ended on June 30, 2025. Today we have with us the senior management team of Premier Explosives Ltd. Mr. T.V. chaudhary. Sir. He is a Managing Director. And with him we also have Mr. Vijay Ji Kumar. He is a Chief Financial Officer. But before we begin I would like to state that this call may contain some of the forward looking statements which are completely based upon the company’s belief, opinion and expectations as of today.
The statements made in today’s call are not a guarantee of a future performance and also involve unforeseen risk and uncertainties. The company also undertakes no obligation to update any forward looking statements to reflect development that occur after the statement is made. Documents relating to the company’s financial performance including the investor presentation have already uploaded on the Stock exchange. And Now I invite Mr. Chaudhary sir to share his initial remarks on the company’s performance for the first quarter ended on June 30, 2025. Thank you. And over to you sir.
T V Chowdary — Managing Director
Thank you Mr. Gilesh. Good morning to everyone and thanks for joining the call. FY26 delivered a strong performance with revenue increasing 72% year on year. It is to rupees 142 crores driven by robust growth in our Defense and Space Services division. Our current outstanding order book stands at Rupees 988.5 crores forming 2.4x of financial year 2025 revenue during the quarter. Successful execution of old order positioned the company to bid for and secure larger high value contracts from the Ministry of Defence, the Indian defence industry and international defence entities. In quarter one FY26 the company secured orders from entities including BrahMos Aerospace Private Limited for propellant casting and booster assembly as well as from various overseas clients for the design and development of rocket mortars and supply of defense products as well as commercial explosives which are at different stages of execution as discussed in the previous conference call.
As well, the company acknowledged the fire and explosion incident that occurred on April 29 at its Kartepalli village facility in Telangana. The incident took place in One of the 61 production buildings, specifically the big solid propellant mixer unit. While the event did not have any material impact on overall operation, the propellant plants remained under Susan suspension as a regulatory measure. The Pollution Control Board temporarily directed the plant shutdown and the company is actively engaging with the authorities to obtain the necessary clearances expected within the few weeks. The estimated financial impact from the suspension is approximately rupees 20 crores over two years.
The facilities are fully insured and the company anticipates receiving the insurance claim in the coming months. Coming to Future outlook Premier is the only Indian company qualified to manufacture countermeasures and specializes in exporting fully assembled rocket motors. Along with rocket motors, it also manufactures and exports warheads, mines and ammunition under Atmanirbar Bharat Initiative with the Ministry of Defence promoting domestic production and reducing imports. This policy supports Premier’s growth by driving local manufacturing. In FY26, we generated a healthy cash profit of rupees 18.2 crores. By maintaining stable operations and leveraging our efficient cost structure, we aim to further enhance operational efficiency and boost cash flow.
This strengthened cash flow will reinforce our balance sheet with a positive outlook on the defense and aerospace sectors. We are focused on becoming a key player in both domestic and export markets. Now I request Mr. Vijay Kumar Rauti Apur to share the financial performance. Thank you, sir.
B M Vijay Kumar — Chief Financial Officer
Good morning everyone. The result presentation for the quarter ended June 30, 2025 has been uploaded in the stock exchanges and on the company’s website. I believe you may have gone through the same. The revenue from operations for Q1FY26 stands at 142.1 crores which shows a growth of 72% year on year and 92% quarter on quarter. Our operating profit for Q1FY26 stands at 20.9 crores which shows a growth of 35% year on year and 118% quarter on quarter. The operating margin for the quarter stands at 14.7%. We reported a net profit of 15.3 crores which shows a growth of 110% year on year and 314% quarter on quarter.
The pat margin for the quarter stands at 10.8%. The improvement in revenue and margins was mainly due to the higher contribution from defense and space segments which accounted for 86% of the revenue this quarter compared to around or below 80% earlier. Now coming to the order book. The company’s current order book stands at 988.5 crores out of which the defense segment order is majority of 860 crores which is equal to 87% of the total order book. Explosive segment stands at 69 crores which is equal to 7% of the total order book. And service segment, which is operational and maintenance services segment stands at 59 crores which is equal to 6% of the total order book.
The order book shows a solid and strong growth towards the coming years. We are very much content that the with our continued execution run rate in the forthcoming quarters will be in a continuing with the growth trajectory. With this, we’ll now open the floor for questions and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question comes from the line of Nishita from Sophia Capital. Please go ahead.
Nishita
Hi. So I had a few questions. Am I audible?
operator
Yes, ma’, am, you’re audible.
Nishita
Okay. So my first question was regarding the EBITDA margin drop. Year on year you have a 4% drop. Can you tell me the reason why? Hello.
operator
Hello. Sir, were you able to hear the question?
B M Vijay Kumar
Model is it is maintaining a 10.88%. So most of the products, defense products have been dispatched in the next next quarter. So I think it will improve from the second quarter.
Nishita
No. So my question was what is the reason for the draw?
B M Vijay Kumar
What is the drop? No, no, it is only 11%.
Nishita
Hello.
B M Vijay Kumar
Most of the most of the defense products are dispatched in the second quarter. Most of them are in the stocks. That’s why we value stocks at cost of market value, whichever is lower. That was the reason.
Nishita
Okay. Also can you give me any update on the capex plans that you have at the Orissa plant and the Kartapalli plant?
T V Chowdary
Yeah, Orissa plant is a greenfield plant. We are acquiring land starting from Rand and infrastructure development. And we have divided into three phases. Product wise, the entire project is not going to be built up in the first phase. So we have plans of going for ammunition, warheads and Raw materials like HTBB in Odisha plant and at Katya Valley plant. Yeah. We are going to enhance our capacity of rdx, HMX and also integration of rockets. So this is for announcement of.
Nishita
Yes. So can you give me an update on when will the phase one on the orthoplan start and when will the total capex be finished? When will the phase one start and when will the total capex be finished?
T V Chowdary
We are at a very nascent stage. The land is identified by Orissa government and then they found that some patches of forest land in that. So they have written to different various departments to give any objections or anything to hand over that. So it is at that process, this whole process may take the land acquisition itself may take a year. So afterwards then the planning only we can start planning the project and designing the project after the land. Thank you SG ma’, am.
Nishita
Like on the enhancement capacity in Kattafalli by. When will that be done?
T V Chowdary
That is immediate. We want to take up immediately and already RDX client expansion has already started. It is going on. We are expecting it to come into production before December of 2025.
Nishita
Okay. And like what is the total capex that you are doing for both the plants?
B M Vijay Kumar
Capex for RDS plant is about 25 crores. There are two, three different phases. So first phase will be around 50 and all put together it will be around. Yeah. In three pages.
Nishita
Sorry. The total CapEx would be 100 crores.
T V Chowdary
Yeah, to start with.
Nishita
Yes. Okay. Okay. Okay. My last question would be that you mentioned in the previous con. Call that the fire incident. Due to the fine incident the plant will be operational by me. So has there been any delay in the plant being operated?
T V Chowdary
So the plant, the two manufacturing facilities in Katyapalli they are already functioning that they have come back into production and it’s going on. That is our high explosive warheads and munitions plant. They are all already operating. Only the plant where the propellant plant where the accident happened that is under suspension. Otherwise all other units are operational.
Nishita
So when. So my question is when will the coupon plant be functioning as well? By what time? Because you’d mentioned previously that it will be operational in me.
T V Chowdary
Yeah, we are expecting anytime the clearance. We have submitted the request to SO office. So they are looking into that. And then they suggested some precautions which we are also parallely taking up. So it is expected to start back. Yeah. And one. One more thing I want to mention is.
Nishita
Sorry, actually your voice was cracking. Then are you expecting it to start?
T V Chowdary
See the private present operations. I think within A one month that they will come into operation. The propellant plant, other plants are already working. They are producing now the building which collapsed and all those it will not happen now. It will take two years to reconstruct it and then all those because it’s a procurement of equipment and all those they are all fabricated to the author. So that particular building may take two years but otherwise all other activities have started.
Nishita
Okay. Okay, perfect. Thank you so much.
operator
Thank you. The next question comes from the line of Deepen Vakil from Philip Capital. Please go ahead.
Dipen Vakil
Hi sir. Thank you for this opportunity and congratulations on a great set of numbers. So my first question is just a small follow up on the previous participants question. So your capex on the Orissa plant was not clear. So can you just repeat it? In phase one you are expecting 50 crores and all put together in Orissa plant. What would be your capex?
T V Chowdary
See, we have projected a capex of 10 years that is in three phases. All together we projected a capex of 800 crores. If you remember our earlier. But we are not planning to take up everything now. It’s a 10 years plan. So what is mentioned is the first phase and infrastructure development is around 100 crores this year budget.
Dipen Vakil
Got it. Okay, so and my second question is that. So considering that there has been some advances happening because of the emergency procurement especially on the missiles and ammunition side of it. So how would you think that can boost your performance in this year in terms of your revenue as well as the auto pipeline? So what would be your. Is there any revision in your guidance? How do you expect FY26 to be from revenue as well as order book point of view?
T V Chowdary
Yeah, we are participating in all those emergency procurement orders and all those. For your information we have already participated in. Yeah, around 700 crores are already participated which are in pipeline. So even if you don’t get all of them but a portion of that itself will give a big boost to us.
Dipen Vakil
So any number that you would like to put in terms of revenue growth and order inflow, amount of order inflow that you expected in FY26 overall normal orders as well as emergency procurement.
T V Chowdary
There is no change in our figures. Like what we have indicated in the Last call was 600 crores is the turnover 600 plus. So we still stand by that.
Dipen Vakil
Got it, Got it. And order inflow. No, no guidance on order inflow.
T V Chowdary
Order inflow. Like I said…
B M Vijay Kumar
We already participated in RFC. They come it may.
T V Chowdary
More than 700 crores order. We have participated now Defense Industry to mature then to order and all those the time taken is much longer. Even though it is emergency procurement. Still you expect at least a delay of 5. Not delay, I’ll say rather 5, 6 months they take to decide. Finally.
Dipen Vakil
Got it sir. And when we look at your segment, so between exclusive segment and different segment. Both different segments, your higher margin segment and the explosives.
T V Chowdary
Yeah, yeah, definitely it is higher margin segment.
Dipen Vakil
So considering that this quarter defense segment was almost more than 80% of revenue. So any particular project where you had low margins which impacted impacted your overall margins. Because gross margin as well as EBIT margin both have come down to by few percentage points.
T V Chowdary
Like CFO has explained.
B M Vijay Kumar
In fact year on year, if you take quarter on quarter year, year on year it was 12.9% earlier. Now it is 14.7. It has gone up compared to previous quarter. If you take immediate quarter, immediate quarter in the March, what happened is the turnover was also less. It was only 82 crores. Now the there is a turnover jump also in the current year. Current quarter.
Dipen Vakil
Got it sir. I have few more question. I’ll join back to queue.
operator
Okay, thank you. Before we move to the next participant, a reminder to all participants, you may press Star and one to ask a question. The next question comes from the line of Yash from Invet Research. Please go ahead.
Yash Rawat
Thank you. Thank you for this opportunity. So all my questions have been answered. But I have just one question that I see. Recently we have added PETN in our product portfolio. As per my understanding, PETN is mainly used as a booster in mining applications only. But we have listed it under different segment. So I just want to understand on this and also earlier PET and as per my understanding was mainly imported. So are we the only players who will be manufacturing this?
T V Chowdary
I think that is a wrong import. PET is mostly being imported now. PET is mostly made in India and exported tnt.
B M Vijay Kumar
You made it say tnt?
Yash Rawat
Yeah, PETN which we have in our presentation.
T V Chowdary
No, PETN is we produce and we consume for our own self consumption. We produce detonating fuels from PETN and also we produce CAST boosters from petn. But if there is some international buyer and all those we also sell and export.
Yash Rawat
Okay, but have we recently started manufacturing it or we are manufacturing it earlier?
T V Chowdary
In fact we are one of the first to manufacture PETEN in small small scale way back in 1985.
Yash Rawat
Okay, understood. Thank you so much.
operator
Thank you. Before we move to the next participant, a reminder to all participants, you may press Star and one to ask a question. The next question comes from the line Of Naman from Nirmal One Securities. Please go ahead.
Naman
Yes sir. Thank you for the opportunity. So my question was regarding the explosive side of the business. I needed to know if there if we have received any orders from Coal India or any other mine for the mine explosives during the quarter. And henceforth since we’re expecting. Since the mining activities are expected to grow Are we expecting an increase in order for the mining explosives business?
T V Chowdary
We are expecting the growth but it’s not that it is going to compete with defense. Defense will definitely be higher than bulk explosives. Because there the competition is more fierce and we don’t want to get into business by losing. That’s not the idea. So if the price is suitable because mostly these stand ups are done by reverse. Reverse auction. So why in the reverse auction we do not know where the price will go down. And although right now we are not supplying any bulk explosives to coal India finger any colorists. We are supplying coal India.
We have recently won a tender for accessories and the bulk explosives is expected in the end of the current calendar year when it comes to participate.
Naman
Okay. Thank you so much.
operator
Thank you. The next question comes from the line of Ketan Gandhi from Gandhi Securities. Please go ahead.
Ketan Gandhi
Hi sir, can you throw some light on unexecuted order of chips and flares after this quarter?
T V Chowdary
It’s not unexecuted order.
B M Vijay Kumar
We have executed 68% so far. So balance 32% will be executed by December or max March before before this financial year end it will be completed in terms of amount how much? Sir amount wise leftover is about 180 crores.
Ketan Gandhi
Okay. Thank you sir.
operator
Thank you. The next follow up question comes from the line of Depend McKeel from Philip Capital. Please go ahead.
Dipen Vakil
Thank you for the follow up opportunity sir. So again on the shafts and fair. Thank you for the clarification on the pending water book. So what would be the quantum of. So since the shafts and players order is getting delayed so is there any this penalties that we are still getting in as to what would be the quantum of those penalties that would be facing in because of the delay. So that would be your first question.
B M Vijay Kumar
The penalty is LD is maximum 15%. We are already at that 15% slab so there’s no question of further penalties. And also we are going to execute it before this March balance.
Dipen Vakil
Okay. Okay. So to say that so after once the chef shap and fly order is completely executed we can see some uptick in our margins going ahead after that.
B M Vijay Kumar
Yes.
Dipen Vakil
Okay. So my next question is that in fourth quarter we have won almost five export orders that we have reported. Five or five in that. What would be. So what is the lead time that we usually get in smaller. Smaller projects as well as larger projects from getting the order to starting the deliveries of that. So say for example there are some orders at 24 months and some orders at 12 months. So what would be the lead time to. From getting order to supplying them?
T V Chowdary
See these orders that export orders of. But mainly they are rocket motor orders where the orders are for design, development and then production. So in design development stage they take around 12 months to 24 months depending upon the type. And all those. Other than that rdx. Yeah.
Dipen Vakil
Yeah. Sorry, please continue sir.
T V Chowdary
Yeah, other than the rocket motor the another major area where we are we have booked the export orders are RDX and hmx. This is. Yeah, this is an ongoing thing and we expect to complete the quantity in two years time. This it will be regularly supplied month on month.
Dipen Vakil
Got it sir. So, so what would be your order book split between export orders and domestic orders and production orders and development orders.
B M Vijay Kumar
Export orders will be around 46% and then domestic is about 54%. Production orders are nominal. Yeah, not much. 40%.
T V Chowdary
Whatever orders we have, we have executed. Now we have to get further production orders. You mean the export orders? Right. What is about.
Dipen Vakil
Overall overall production?
T V Chowdary
Most of the development orders are for export only. Domestic orders they are all. Some are there in DRDO along with the DRDO when we are working in DCTP program. But most of the other things are in production stage like lr, Sam, mr, Akash, Astra. They’re all in production stage. Exactly the figure I think I don’t have.
Dipen Vakil
Got it. That was very clear. Thank you so much. And all the best for FY26.
B M Vijay Kumar
Thank you.
operator
Thank you. The next follow up question comes from the line of Ketan Gandhi from Gandhi Securities.
Ketan Gandhi
Please go ahead sir. Any amount we have received for the penalty which we have paid for late delivery of the chaps and player. Any write back has been done in this quarter. And if not then what are the timeline for that? I mean any update from the ministry regarding the waiver? Our application is pending with them. Maybe we are expecting maybe this quarter and next quarter before March. I think we should get some positive result.
B M Vijay Kumar
Expecting.
T V Chowdary
Yeah. Like I mentioned we are working from in two counts. One is from our customer for waving of the ld. Another is our vendor to share the ld.
Ketan Gandhi
Okay, got it. Thank you sir, that’s very helpful. All the best.
operator
Thank you. Before we move to the next participant a reminder to all Participants you may press star and one to ask a question. The next question comes from the line of Rahul Agarwal an individual investor. Please go ahead.
Rahul Agarwal
Hello.
operator
Sir, sorry to interrupt but your audio is breaking.
Rahul Agarwal
Hello. Is it better now?
operator
No, no sir, there is still an audio break. I request you to join the queue. Hello. You can join the queue. Again your audio is not clear.
Rahul Agarwal
Hello, Is it better now?
operator
Yes sir, now it’s better. Please go ahead.
Rahul Agarwal
Thank you for the opportunity and congratulations for the set of numbers. I had one question. It’s regarding that you announced for a 300 crore of fundraise. So can you share some light on the fundraise?
B M Vijay Kumar
We are looking for either PIP or preferential issue kind of thing. So that is mostly for the Capex is about 200 crores and balance is for repayment of terminals and general corporate process.
Rahul Agarwal
Okay, thank you. If you could just share some like long term and short term vision like going forward for FY26 and 27. If anything most of them existing units.
B M Vijay Kumar
You want to go ahead with about 90 crores investment. So all these things we have to get masonry and all this is all capex. So maybe everything will start in FY 2027 getting the result. So first thing is we need to raise the fund then start putting it into the use. Yeah. And also we have a JV in this one. So in JV also we are proposing some payments. So that is about 50 crores in that.
Rahul Agarwal
Okay. So thank you sir.
operator
Thank you. A reminder to all participants you may press star and one to ask a question. A reminder to all participants you may press star and one to ask a question. The next question comes from the line of Kyokur Kumar from Nivisha. Please go ahead.
Saurabh Kumar
Congratulations for the good success of number one. My question is to the pipeline you have mentioned like you mentioned that you we are participating around 700 crore of the emergency procurement act. So can you give more insights of like how that is distributed?
T V Chowdary
I don’t think it’s a sensitive information at this stage. I don’t think that’s right to share.
Saurabh Kumar
Okay. And can we get it like means we did a GV with NIB group. So is there any development of that side or the MoU on the Astra micro products we did in the I think last same time frame. So is there any further development.
T V Chowdary
In Astra microwave? Yeah. No, no significant development.
Saurabh Kumar
Okay.
B M Vijay Kumar
Now what is your question?
T V Chowdary
JV side you said?
Saurabh Kumar
Yeah.
T V Chowdary
JV side. It is in the early stage now we are working together for assessing the total investment Needed and all those within the JV purpose land is under acquisition. Yeah.
Saurabh Kumar
Okay. So in what time frame we can expect any contribution from that site? Sir.
T V Chowdary
It will take at least one more year to get the licenses and then start the trial productions and other things.
Saurabh Kumar
Okay. And right now we have received the more of the order on the export side. So like it is a deemed fit order or it’s like properly exported to other countries.
T V Chowdary
Question is not clear. Can you please remain?
Saurabh Kumar
I am. I’m saying in Q1 we have received overall like 330 or 340 crores of the orders. So they are mostly for the international entity. Right. So it is like export deemed or means it’s purely export order.
T V Chowdary
So yeah, other than that like now we are the previous order of shafts and plates that we still have another. Yeah, other than exports, we have other orders like Burmos to execute and then MRFAM to execute. And all those are parallel going on.
Saurabh Kumar
Okay. And my last question is mentioned that the QRFM regarding the order would be delete. So is there any opportunity on that?
T V Chowdary
Yes. QR Sam, we are very much in it because we are the qualified source for the propellant of qrs. So anybody productions problem does to be given by pe.
Saurabh Kumar
Okay. And I mean as this is happening on a daily basis. So when you expect this would be happen like FY26 and or row in FY27?
T V Chowdary
Sir, I think it will go to 27.
Saurabh Kumar
Okay, thank you.
operator
Thank you. The next question comes from the line of Shantanu Chatterjee from Mount Infra Finance Private Limited. Please go ahead.
Santanu Chatterjee
Congratulations sir, for good set of numbers. My question is on other income. The other income for this quarter has increased significantly compared to the previous period. And you have already written over there on your note that some reversal was there of a previously recognized loss provision. Can you give some add some color on on Twitter? Because.
B M Vijay Kumar
We have provided some loss on some long term contract. So that is nowhere required now. So we’re not incurring any loss. So that’s the way it is.
Santanu Chatterjee
It is not actually related with that LD charge, right?
B M Vijay Kumar
No, no, no.
Santanu Chatterjee
Okay. No way. Okay. Thanks a lot for your clarification, sir.
B M Vijay Kumar
Yeah.
operator
Thank you. The next question comes from the line of Dev Chaudhary from Nivishai. Please go ahead.
Dev Chaudhary
Hello. So. So you mentioned something about the joint venture at the JV partnership. Could you give me a little bit more information about that? Like what exactly is it and what that plant would be like?
T V Chowdary
I think it is very much shared with everybody that we have formed a JV with Global Munitions Limited. And. These are the parent companies, Global. Munitions Limited and Premier Explorers Limited and the JV companies, Global Premier Limited. So we propose to manufacture rpx, HMX and rocket motors and all energetic materials required, propellants and warhead filling. And all those will be supported by Premier to the jv. In brief, that is the JV activity.
Dev Chaudhary
All right, thank you.
operator
Thank you. The next question comes from the line of BN Rao, an individual investor. Please go ahead.
B.N. Rao
Good morning. Yesterday I read some news items about one more accident somewhere in some other unit. Can you elaborate that?
T V Chowdary
This was not in the process building. Yeah, there was. You’re right. There was an accident and life was lost. It was not an accident in the plant. It is. I don’t know how to explain. It is in one. The person was not necessary to be present during the tea break. He went there and I think he got a head injury and he was found. Now how it happened, what investigation is going on.
B.N. Rao
Okay, thank you.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. As there are no further questions from the participants, I will now hand the conference over to Mr. T.V. chausi for closing comments.
T V Chowdary
Thank you very much everybody for participating in the call on call and also taking interest in the company and all the support given by the stakeholders. Thank you very much.
B M Vijay Kumar
Thank you.
operator
Thank you on behalf of Premier Explosives Limited. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.