Premier Explosives shares surged 10% to ₹545 on April 22, hitting a day's high of ₹545.40, after securing export orders worth ₹350.23 crore for defence products. According to reports from LiveMint, the company received the orders from an international entity for supply over a two-year period, though the client details were not disclosed. This significant order win helped the stock regain momentum after a challenging December quarter performance.
Despite the positive export news, Premier Explosives reported a weak December quarter performance with revenue declining 51% YoY to ₹81 crore and EBITDA falling 25% YoY to ₹11 crore with margins at 14%. As reported by LiveMint, profit after tax dropped 34% YoY to ₹6 crore, primarily due to high base effects from elevated chaffs and flares dispatches in the corresponding period last year. However, the company's order book remains strong at ₹12,946 million at the end of December quarter, equivalent to 3.1 times its FY25 revenue.
The stock has demonstrated strong recovery momentum in April, rising 43% and recouping the entire 29% decline seen in March. According to LiveMint, the company's shares have regained momentum after hitting a record high of ₹909 before witnessing a sharp correction to ₹309 before recovering. Despite volatility, the stock maintains strong long-term performance with gains of 562% over three years and nearly 1,700% in five years.
Premier Explosives is a leading manufacturer of high-energy materials for defence, aerospace, and mining sectors, also undertaking operations and maintenance services for solid propellant plants at ISRO's Sriharikota Centre and the Solid Fuel Complex at Jagdalpur under DRDO. As reported by LiveMint, the company announced the cancellation of an earlier export order worth ₹18.90 crore for defence explosives that was received on March 18, alongside the new major order win.
