Defence stock hits 10% upper circuit after signing JV for defence & aerospace products

A leading Indian chemical firm is set to revolutionise aerospace and defence manufacturing through a strategic joint venture. This partnership aims to enhance production capabilities, leverage technological expertise, and strengthen the country’s indigenous defence manufacturing ecosystem.

Share Price Movement 

The share price of Premier Explosives Limited hit the upper circuit of 10 percent to Rs. 567 per share on Monday, an increase from its previous close of Rs. 516 per share. The market capitalisation now stands at approximately Rs. 3,051 crore as of December 16, 2024.

What Happened 

Premier Explosives has entered into an MoU with Global Munition Limited (a subsidiary of NIBE Ordnance and Maritime Limited) to establish a 51:49 joint venture for manufacturing defence and aerospace products.

Q2 Financial Highlights

According to its recent filing, in the quarter ending September 2024, Premier Explosives’s consolidated revenue from operations has increased by 20 percent YOY from Rs. 78.42 crore in Q2 FY24 to Rs. 94.60 crore in Q2 FY25 and increased by 14 percent QoQ from Rs. 82.86 crore in Q4 FY24. 

The company’s consolidated net profit has declined by 27.7 percent, from Rs. 11.61 crore in Q2 FY24 to Rs. 8.39 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 15.2 percent QoQ from Rs. 7.28 crore.

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Market Outlook 

India’s defence sector is witnessing robust growth, with exports reaching ₹21,083 crores in FY 2023-24, a 32.5% rise from the previous year. Government reforms, “Make in India,” and policy initiatives like DPEPP have bolstered domestic production and private sector participation. Companies like Premier Explosives Limited (PEL) leverage innovation and strong R&D to meet global standards. With rising global demand for defence products and technology, India’s focus on indigenisation positions it as a key player in the global defence manufacturing ecosystem.

Shareholding Pattern

As of the September 2024 shareholding pattern, Premier Explosives Limited is primarily held by the promoters at 41.33 percent, foreign institutional investors hold 0.36 percent, and the public with 49.93 percent.

About Company 

Premier Explosives Limited (PEL) has transformed India’s defence and space sectors since its inception in 1980. Furthermore, the Secunderabad-based company excels in manufacturing high-energy materials and explosives for critical national applications. Additionally, PEL distinguishes itself as the sole private entity in India developing solid propellants for prestigious missile programs like Akash and BrahMos.

The company’s impressive operational footprint extends across strategic locations in Telangana, Madhya Pradesh, Maharashtra, and Tamil Nadu. Moreover, PEL’s state-of-the-art facilities demonstrate their commitment to manufacturing excellence and technological innovation. Consequently, their collaboration with prestigious institutions like IIT Madras has accelerated breakthrough developments in high-energy materials. Meanwhile, the company maintains stringent quality standards across all manufacturing processes.

Written By Fazal Ul Vahab C H 

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