1. At a Glance
Premier Explosives is India’s only private firm manufacturing solid propellants, rocket motors, and explosive devices for defence & space agencies like ISRO and DRDO. Their Q1 FY26 showed total income of ₹74 crore and profits of ₹3.7 crore—a massive 55% drop QoQ. Yet, they’re not short on confidence, planning a ₹300 Cr fundraise, launching ESOPs, and eyeing 18–20% EBITDA margins for FY26. Also, they’ve bagged export orders worth ₹190 Cr and $12.24 Mn recently.(Moneycontrol)
2. Introduction
Premier is the quiet powerhouse behind India’s defence propellant engines and space ambitions. Think of them as the “special forces supplier” of explosives. But Q1 FY26’s nosedive in profit (from ₹9.2 Cr to ₹3.7 Cr) is a sobering reminder that supply chains and client billing cycles in defence can tank your mood—and your bottom line. Still, futuristic ambitions remain strong.
3. Business Model (WTF Do They Even Do?)
They’re vertically integrated in thedefence & space explosivesdomain—manufacturing solid propellants, rocket motors, chaffs, flares, pyro initiators, and offering O&M services at ISRO and DRDO facilities. They moonlight as India’s only private supplier—so it’s a high-security club with few competitors.
4. Financials Overview
Q1 FY26:
- Total Income: ₹74 Cr
- Net Profit: ₹3.7 Cr (↓59% QoQ, ↓45% YoY)(Business Standard)
Financial Highlights:
| Metric | Value |
|---|---|
| ROCE | 17% |
| ROE | 12.3% |
| P/E Ratio | 57.7x |
| Book Value | ₹45.7 |
Margins shrank QoQ, but strategic orders and
targets imply they expect a rebound.
5. Valuation (Fair Value RANGE only)
| Method | Basis | Multiple | FV Range |
|---|---|---|---|
| P/E (Look‑ahead) | Estimated EPS of ₹17 (annualised) | 25×–30× | ₹425–₹510 |
| P/B | Book Value ₹45.7 per share | 4×–5× | ₹183–₹229 |
Fair Value Range:₹200–₹500 (wide, because explosive stocks can misfire fast)
This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Order Wins:₹190 Cr export and $12.24 Mn export orders recently added.
- Margin Target:Aiming for 18–20% EBITDA in FY26.
- Fundraising & ESOPs:₹300 Cr planned fundraise, ESOP 2025 launched.
- Operational Speed Bump:Q1 profit down sharply—likely due to execution lags or billing delays.(Business Standard,NDTV Profit,Screener)
7. Balance Sheet (Rough Table)
Values not provided explicitly—refer to existing data excerpt
Debtor days have improved (76 → 33 days), debt is
