Premier Explosives Q4 FY25 Results: Growth Amid Challenges

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Premier Explosives Q4 FY25: ₹166.14 Crore Revenue Surge Fuels Defence Growth Despite Challenges

By S Jha

Mumbai, May 1, 2025 – Premier Explosives Ltd., a key player in India’s defence and explosives sector, reported its Q4 FY25 financial results, showcasing significant revenue growth driven by strong defence orders, despite operational hurdles.

The company manufactures solid propellants for missile programs like Akash and Astra. It posted a consolidated total income of ₹166.14 crore for the quarter ended March 31, 2025.

In comparison to Q4 FY24, Premier Explosives posted a 250.23% surge in revenue, which had been ₹47.44 crore a year ago. The Q-to-Q revenue growth, however, comes at 73.68% from ₹95.66 crore.

Net profit, however, stood at ₹9.23 crore. Analysts noted rising costs faced by the company. The company’s defence and space segment contributed 84% of revenue in nine months of FY25, up from 63% in FY22.

Premier Explosives secured a ₹20.36 crore export order for rocket motor development in Q3 FY25, bolstering its order book to ₹1,054 crore, a 75% year-on-year increase.

Experts praised the company’s strategic focus but cautioned about execution risks. @Equitymaster, a market analysis platform, posted a day before the results, saying: “Premier Explosives: Back in profit after tough years! Focus: Solid propellants, high-energy materials for defence & space. Strong surge in profitability lately.”

This sentiment underscores the company’s recovery, driven by its pivotal role in India’s defence ecosystem, including supplies to Bharat Dynamics and ISRO.

However, @nid_rockz, a stock market commentator, highlighted operational challenges in a July 2024 post that remains relevant: “Premier Explosives: Orderbook at 900cr, 3.3x of FY24 revenue. Logistics and supply side challenges easing. Looking to execute 50% of the orderbook in the next 18 months.”

The Q4 results reflect progress, with supply chain bottlenecks easing, but rising interest costs (3.87% of operating revenues in FY24) and employee expenses (21.16%) continue to weigh on margins.

The company faced a setback with a fire and explosion at its Katepally village factory in Telangana, announced in Q4, which could impact short-term operations.

The company’s return on equity (13.5%) and return on capital employed (18%) in Q2 FY25 signal improving efficiency. The stock price crashed yesterday 12.47% to ₹409.05.

On X, @StockMarketGuru, commented post-results, “Premier Explosives Q4 shows defence orders driving topline, but margins need work. Fire incident a concern, but long-term story intact with Akash, MRSAM demand.”

Premier Explosives’ management, led by Managing Director T.V. Chowdary, emphasized in a February 2025 earnings call that Q4 billing was expected to be strong due to defence order executions, a trend confirmed by the latest results.

The company’s market cap stood at ₹2,197.49 crore, with its stock trading at 10.7 times book value, signaling high investor expectations tempered by a low three-year average ROE of 6.93%.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.