Defence Stock Crashes 4% After Reporting 66% QoQ Decrease in Net Profit

Synopsis: Premier Explosives Limited reports a 50.93% YoY drop in revenue and a 65.79% QoQ decline in net profit in Q3 FY26 results.

This Defence stock, engaged in manufacturing high-energy materials, solid propellants, detonators, and explosives for defence, space, mining, and infrastructure sectors, slipped 4.32 percent after the company reported weak December quarterly results with a 65.79 percent YoY decrease in net profit.

With a market capitalization of Rs. 2,496.40 crores, the share of Premier Explosives Limited has reached an intraday low of Rs. 454.15 per equity share, down nearly 4.32 percent from its previous day’s close price of Rs. 474.65. Since then, the stock has retreated and is currently trading at Rs. 464.35 per equity share. 

Q3 FY26 Result Walkthrough

Coming into the quarterly results of Premier Explosives Limited, the company’s consolidated revenue from operations decreased by 50.93 percent YOY, from Rs. 165.92 crore in Q3 FY25 to Rs. 81.41 crore in Q3 FY26, and grew by 7.71 percent QoQ from Rs. 75.58 crore in Q2 FY26.

In Q3 FY26, Premier Explosives Limited’s consolidated net profit decreased by 34.02 percent YOY, reaching Rs. 6.09 crore compared to Rs. 9.23 crore during the same period last year. As compared to Q2 FY26, the net profit has decreased by 65.79 percent, from Rs. 17.80 crore. The basic earnings per share decreased by 33.92 percent and stood at Rs. 1.13 as against Rs. 1.71 recorded in the same quarter in the previous year, FY2025.

Premier Explosives Limited’s revenue and net profit have grown at a CAGR of 27.97 percent and 79.67 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 17.0 percent and 12.3 percent, respectively. Premier Explosives Limited has an earnings per share (EPS) of Rs. 7.99, and its debt-to-equity ratio is 0.10x.

Order Book

As of September 2025, Premier Explosives Limited has a strong order book of about Rs. 1,297.1 crore, nearly 3.1 times its FY25 revenue, giving solid future revenue visibility. The company’s order book is heavily defence-focused, with around 90 percent coming from defence, while explosives contribute 6 percent and services 4 percent. This mix strengthens the company’s position in a priority sector and supports stable long-term growth, backed by consistent government demand and strategic projects.

Company Overview

Premier Explosives Limited manufactures high-energy materials and allied products for defence, space, mining, and infrastructure sectors. As a pioneer in indigenizing explosives technology in India, the company produces bulk and packaged explosives, detonators, detonating fuses, solid propellants, pyrogen igniters, and pyro devices.

The company serves defence needs through solid propellants for missiles like Astra, Akash, Agni, and rocket motors for ISRO’s PSLV, alongside countermeasures such as chaffs and flares, while also handling operation and maintenance for propellant plants of ISRO and DRDO. In commercial segments, it supplies cartridge explosives, cast boosters, and detonators to mining and infrastructure clients, with exports to countries including Israel, Nepal, and Indonesia. 

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