Introduction:
Defence stock jumped after reporting a 439.5% YoY increase in net profits for Q3 FY25, driven by a 250.7% revenue surge. Rising expenses and finance costs impacted margins. The company also secured a ₹20.36 crore export order for rocket motors, strengthening its global defense presence.
Share Price movement of Premier Explosives:
On February 13, 2025, Premier Explosives Limited opened at ₹404.95, reaching a high of ₹416.85, up 5.54% from its previous close of ₹371.00, and a low of ₹384.00. Currently, it is trading at ₹391.55, with a market cap of ₹2,105.02 crore.
Premier Explosives Q3 Results and new order:
Premier Explosives Ltd posted a 439.5% YoY surge in net profit for Q3 FY25, reaching ₹923.30 crore from ₹171.70 crore. Revenue soared 250.7% YoY to ₹16,591.50 crore, driven by strong operational growth. Total expenses rose 249.5% to ₹15,733.17 crore due to higher raw material costs.
Finance costs increased 76.9% to ₹399.06 crore, reflecting higher debt servicing expenses. Despite strong revenue, tax expenses rose 276.8%, impacting profitability. Deferred tax adjustments lowered total tax expenses to ₹(42.61) crore, providing some relief amid cost pressures.
Premier Explosives Ltd secured an export order worth ₹20.36 crore for designing and developing rocket motors. The international contract, spanning two years, strengthens its presence in the global defense sector. This highlights its expertise in missile and propulsion technology.
Awarded by an international client, the contract involves no related-party transactions. This deal expands Premier Explosives’ export footprint in defense manufacturing. It aligns with the company’s growth strategy, enhancing capabilities in rocket motor development and global defense collaborations.
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Recent news About Premier Explosives :
In December 2024, Premier Explosives Limited entered into a Memorandum of Understanding (MoU) with Global Munition Limited, a subsidiary of Nibe Ordnance and Maritime Limited, to establish a joint venture for manufacturing defense and aerospace products. This strategic partnership aims to enhance production capabilities in these sectors.
Stock performance of Premier Explosives for Period of 1 week, 6 months and 1 year:
Premier Explosives stock declined 17.6% over the past week, reflecting short-term volatility. Over six months, it recorded a significant drop of 35.3%, indicating sustained pressure. However, despite these declines, it posted a strong 33.2% gain over the past year, showcasing long-term growth potential.
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Shareholding pattern of Premier Explosives:
| All values in % | Dec-24 | Sep-24 | Jun-24 |
| Promoters | 41.33 | 41.33 | 41.33 |
| FII | 0.39 | 0.36 | 0.62 |
| DII | 8.2 | 8.37 | 9.44 |
| Retail & others | 50.08 | 49.93 | 48.59 |
About Premier Explosives:
Premier Explosives Ltd is a leading defense and aerospace company specializing in high-energy materials, propellants, and explosives. It supplies critical components for missiles, rockets, and defense applications, supporting India’s strategic initiatives and expanding its global presence through advanced technological solutions and export contracts.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
