Rs 750 Crore Order Book: Defence company Stock Surge Over 4% on Securing Rs 105 Crore Export Order for Defence Explosives

Premier Explosives Limited saw its share price rise over 4 per cent on Wednesday, hitting an intraday high of Rs 556.30 after announcing a significant export order worth USD 12.24 million (approximately Rs 105 crore). The order is for the manufacture and supply of defence explosives to an international client and is expected to be fulfilled over a 12-month period.

This development comes at a time when broader market indices showed limited movement. The Nifty 50 index reclaimed the 25,200 mark, while Mid-Cap and Small-Cap indices remained largely flat. However, stock-specific action continued, with Premier Explosives drawing investor attention due to this high-value defence order.

As of March 2025, the company maintains a robust order book of Rs 750 crore, which is nearly 1.8 times its FY25 revenue. Premier Explosives is the only Indian company qualified for countermeasures and also plays a key role in the export of fully assembled rocket motors.

In terms of financial performance, the March 2025 Quarterly Results showed a decline. Revenue from operations dropped by 14.64 per cent year-on-year to Rs 740.80 crore, down from Rs 867.90 crore in March 2024. Net profit also fell sharply by 44.19 per cent to Rs 37 crore from Rs 66.30 crore in the same period last year.

On an annual basis, however, Premier Explosives posted revenue growth. For FY25, revenue from operations stood at Rs 4,174.50 crore, up 53.63 per cent compared to Rs 2,717.20 crore in FY24. Despite the revenue increase, profit after tax grew marginally by 1.53 per cent to Rs 285.50 crore from Rs 281.20 crore a year earlier.

In terms of share price performance, the stock was trading at Rs 545 per share as of 12:24 PM, up 2.36 per cent intraday. Year-to-date, the stock is up 0.51 per cent, although it has declined 23.78 per cent over the past year. Over a five-year period, however, the stock has delivered multibagger returns, rising over 1,770 per cent.

Established in 1980, Premier Explosives is a leading Indian manufacturer of high-energy materials serving defence, space, mining, and infrastructure sectors. Its product portfolio includes bulk explosives, detonators, solid propellants, pyrogen igniters, and other specialised pyrotechnic devices. The company is also involved in operating and maintaining solid propellant plants for key clients such as ISRO and DRDO, making it the first private player in India to supply solid propellants to the defence segment.

Disclaimer: The article is for informational purposes only and not investment advice.