Why Premier Explosives Share Price is Rising

Today, August 13, the Indian stock markets are trading on a positive note. At the time of writing, the Sensex is up by 313 points (0.39%) at 80,548, while the Nifty 50 index is higher by about 109 points (0.44%) at 24,596.

Sector-wise, there has been a mixed trend with gains in auto, pharma, metal, oil & gas, IT, and media, while realty, FMCG, bank, and consumer durables faced some pressure.

One stock that is rising sharply today is Premier Explosives. The share price has surged 14% today.

So, what's behind this rally?

Let's take a closer look.

#1 Good Q1 FY26 Results

Premier Explosives reported good numbers on both the revenue and the net profit fronts.

The revenue for Q1 FY26 was Rs 1,421 m, up 72% YoY.

The EBITDA grew 35% YoY to Rs 209 m, thanks mainly to the surge in revenue. The profit after tax grew by a solid 110% YoY to Rs 153 m.

The company saw the bulk of its revenue from defence at 86%, while the remaining comprised explosives and other services.

#2 Solid Order Book

Like most companies in the defence sector, Premier Explosives has also grown its order book. The order book at the end of the quarter ending June 2025 stood at Rs 9,885 m, from Rs 7,500 m at the end of FY25.

The order book is now 2.4 times FY25 revenue, which gives revenue visibility for the next two years. The company is expected to do well in terms of its order book, given that it's the only qualified Indian company for countermeasures which also specialises in the export of fully assembled rocket motors.

Investors were impressed with the order inflow, which propelled the stock higher.

What Next?

Premier Explosives operates with some inherent advantages. It's the first company to manufacture explosives and detonating fuses with indigenous technology.

It's the also the first company in the world to produce safer and greener NHN detonators on commercial scale. It's also the first Indian private company to manufacture solid propellants for missile programs.

Looking ahead, Premier Explosives is expanding and diversifying. The company is enhancing production capacity of high explosive raw materials like RDX, HMX, TNT, AP, etc. to meet increasing demand. It's introducing products like mines, ammunition, bombs etc.

The company is also increasing its participation in missile integration as a strategic partner in DCPP schemes of DRDO.

The management is looking to increase the export contribution in industrial and defence explosives where margins are higher.

Premier Explosives benefits from the government's enhanced focus on "Make In India" in defence. According to the company, the defence ministry estimates that contracts worth almost Rs 4,000 bn will be given to domestic industry in the next 5-7 years.

Also, the Open General Export License' scheme to be launched by Government of India will boost export of defence products in the long-term. All of this should directly benefit Premier Explosives.

How Shares of Premier Explosives have Performed Recently

Over the last one month, the share price of Premier Explosives has lost 7% from levels of Rs 532.25 to the current levels of Rs 495.45. In the past one year, shares of the company have lost 11.8%.

The stock hit a 52-week high of Rs 667 on 6 June 2025. The stock also hit a 52-week low of Rs 308.95 on 7 April 2025.

About Premier Explosives

Premier Explosives specialises in manufacturing high energy materials such as bulk explosives, packaged explosives, detonators, detonating fuses, solid propellants, pyrogen igniters, and related pyro devices.

These are used in sectors like mining, infrastructure, defence, space, and homeland security.

In the defence segment, Premier Explosives manufactures solid propellants used in prestigious missile programs like Akash, Astra, and LRSAM.

To know more, check Premier Explosives fact sheet and latest quarterly results. You can also compare Premier Explosives with its peers on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...