Premier Explosives Shares Surge 10% on ₹350 Crore Export Order Win, 43% Gain in April

Premier Explosives Surges 10% Amid Export Order Boost

On Wednesday, 22 April, Premier Explosives, a leading manufacturer of high-energy materials for the defence, aerospace, and mining sectors, gained 10% in intraday trade, hitting a day's high of ₹545.40 apiece. This significant rally came despite the weak market trend, as the company secured a substantial export order, bolstering its revenue outlook.

According to a regulatory filing, Premier Explosives has received export orders worth ₹350.23 crore for the supply of defence products, to be executed over a period of two years. Although the client was not disclosed, the company stated that the order is from an international entity. In a separate filing, it also announced the cancellation of an earlier export order worth ₹18.90 crore for the supply of defence explosives, which had been received on March 18.

Premier Explosives, which derives a significant portion of its revenue from defence and space segments, reported a weak performance in the December quarter. Revenue declined 51% YoY to ₹81 crore, while EBITDA fell 25% YoY to ₹11 crore, with margins at 14%. Profit after tax dropped 34% YoY to ₹6 crore. The decline was primarily due to a high base effect, driven by elevated chaffs and flares dispatches in the corresponding period last year, along with execution timing impacting year-on-year comparability.

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The company's order book remains strong, standing at ₹12,946 million at the end of the December quarter, equivalent to 3.1 times its FY25 revenue. Premier Explosives also undertakes operation and maintenance (O&M) services for solid propellant plants at ISRO's Sriharikota Centre and the Solid Fuel Complex at Jagdalpur under DRDO.

Premier Explosives' share price has regained momentum in April, rising 43% so far and recouping the entire 29% decline seen in March. The rally has also turned the stock positive for 2026, with gains of around 3%. After hitting a record high of ₹909 apiece, the stock turned volatile and later witnessed a sharp correction, falling to ₹309 before regaining footing. Despite the volatility, its long-term performance remains strong, with the stock still up 562% over three years and nearly 1,700% in five years.