Premier Explosives Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Premier Explosives Ltd filed with BSE on 20 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Premier Explosives reported Q1 FY27 revenue of INR102.6 crores, a 28% year-on-year decline attributed to dispatch delays, project execution issues, and supply chain disruptions affecting export licenses and imported components. EBIT fell 80% year-on-year to INR4.8 crores with a 4.7% margin, and net profit declined 80% to INR3 crores with a 3% PAT margin. Management highlighted an order book of INR1,393 crores, about 94% from the Defense segment, and discussed the recent acquisition of a promoter stake by Apollo Micro Systems.
Numbers mentioned
Revenue: INR102.6 crores (Q1 FY27)
p. 3
“During Q1 FY '27, we reported revenue of INR102.6 crores, reflecting a decline of 28% year-on-year.”
T. V. Chowdary, page 3 of the filed PDF · View the filing
EBIT: INR4.8 crores (Q1 FY27)
p. 4
“Our EBIT for Q1 FY '27 de-grew by 80% year-on-year to INR4.8 crores.”
Vijay Kumar, page 4 of the filed PDF · View the filing
EBIT margin: 4.7% (Q1 FY27)
p. 4
“The EBIT margin for the quarter stands at 4.7%.”
Vijay Kumar, page 4 of the filed PDF · View the filing
Net profit: INR3 crores (Q1 FY27)
p. 4
“Our net profit decreased by 80% year-on-year to INR3 crores.”
Vijay Kumar, page 4 of the filed PDF · View the filing
PAT margin: 3% (Q1 FY27)
p. 4
“The PAT margin for the quarter stands at 3%.”
Vijay Kumar, page 4 of the filed PDF · View the filing
Order book: INR1,393 crores
p. 4
“the company's current order book stands at INR1,393 crores, out of which Defense segment order is majority of INR1,309 crores, which is equal to 94% of the total order book.”
Vijay Kumar, page 4 of the filed PDF · View the filing
Explosives segment order book: INR42 crores, 3% of total
p. 4
“Explosives segment stands at INR42 crores, which is equal to 3% of the total order book”
Vijay Kumar, page 4 of the filed PDF · View the filing
Service segment order book: INR42 crores, 3% of total
p. 4
“Service segment, which is Operational and Maintenance Services segment stands at INR42 crores, which is equal to 3% of the total order book.”
Vijay Kumar, page 4 of the filed PDF · View the filing
Q1 execution of INR430 crore order: INR21 crores (Q1 FY27)
p. 6
“Q1, it was only INR21 crores kind of thing.”
Vijay Kumar, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — INR600 crores turnover · FY27
stated firmly by T. V. Chowdary
p. 10
“we are expecting a target of around INR600 crores turnover, which is a considerable increase in the previous year, 2 years, if you take it.”
T. V. Chowdary, page 10 of the filed PDF · View the filing
EBITDA margin — 15% to 20% · FY27
stated conditionally by Deepak
p. 12
“So if the raw material prices get normalized, what EBITDA margin range we can expect? Is the same like 15% to 20%?”
Deepak, page 12 of the filed PDF · View the filing
Order inflow — INR200 crores to INR300 crores · FY27
stated conditionally by Vijay Kumar
p. 9
“Already, we have INR1,393 crores. So FY '27, we are expecting another INR200 crores to INR300 crores.”
Vijay Kumar, page 9 of the filed PDF · View the filing
July 2023 flares order backlog completion — completion · 4 to 5 months
stated conditionally by Vijay Kumar
p. 6
“Earlier order also, we are going to complete it in another 3 to 4 months. There is a backlog of about INR75 crores. So that will be completed in the next 4, 5 months.”
Vijay Kumar, page 6 of the filed PDF · View the filing
RDX and HMX production commissioning — water trials · September
stated conditionally by T. V. Chowdary
p. 8
“Integration of the pipelines and the plant and machinery erection and installation for the RDX and HMX production is almost complete, and then we are expecting to take up the water trials in September month.”
T. V. Chowdary, page 8 of the filed PDF · View the filing
DRDO approval for alternate raw material — clearance · 6 months
stated conditionally by T. V. Chowdary
p. 7
“It may take another 6 months.”
T. V. Chowdary, page 7 of the filed PDF · View the filing
Export revenue — INR150 crores to INR200 crores · FY27
stated conditionally by T. V. Chowdary
p. 6
“Yes, we are targeting some INR200 crores in this quarter based on -- INR150 crores to INR200 crores.”
T. V. Chowdary, page 6 of the filed PDF · View the filing
Run rate execution — INR500 crores to INR600 crores · next 12 to 18 months
stated conditionally by Vijay Kumar
p. 12
“As per our turnover, the run rate we are expecting is about INR500 crores to INR600 crores, rather INR600 crores we are targeting.”
Vijay Kumar, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said prior quarters included expected credit loss provisions and higher forex losses, and the sustainable run rate is around INR9-10 crores.
Answered by T. V. Chowdary
Asked by Paras Kulkarni: What is the sustainable run rate for other expenses given the sharp decline?
p. 5
“Yes, it is -- you can say around INR9 crores kind of thing. You can see in 30th June '25 also, it is around INR9 crores. So INR9 crores to INR10 crores kind of thing.”
T. V. Chowdary, page 5 of the filed PDF · View the filing
Management said margins depend on the product mix and dispatch pattern and reiterated an EBITDA target of 15-20%.
Answered by Vijay Kumar
Asked by Paras Kulkarni: Will gross margins improve sequentially in FY27?
p. 5
“Even in earlier conference calls also, we said that we are targeting an EBITDA of 15% to 20%. So I think same line we are trying to achieve.”
Vijay Kumar, page 5 of the filed PDF · View the filing
Management clarified they are not developing standalone drone technology but partnering with drone manufacturers to supply payloads.
Answered by T. V. Chowdary
Asked by Paras Kulkarni: Is Premier developing its own drone/UAV technology?
p. 5
“We are not developing our own drone technologies that is for the birds and all those. We are partnering with several drone manufacturing industries for the payloads.”
T. V. Chowdary, page 5 of the filed PDF · View the filing
Management said the association could strategically strengthen the company but the full potential would be known only by December.
Answered by T. V. Chowdary
Asked by Paras Kulkarni: Will the Apollo acquisition help win naval orders?
p. 6
“Yes. We are hoping that this association will help us to strategically strengthen ourselves. And -- but the total potential of this will come to know by December only.”
T. V. Chowdary, page 6 of the filed PDF · View the filing
Management said several licenses were received in the past week with more expected within days, and backlog would be cleared this quarter.
Answered by T. V. Chowdary
Asked by Paras Kulkarni: What is the status of pending export licenses worth INR400 crores?
p. 6
“Past 1 week, we have received several export licenses, and we have also moved out the material from the factories. And some of them are in pipeline. We are expecting them to arrive in 1 or 2 days.”
T. V. Chowdary, page 6 of the filed PDF · View the filing
Management said the LD process is ongoing and clarity is expected by quarter end or October/November.
Answered by Vijay Kumar
Asked by Varun Jain: What is the status of the INR30 crores LD reversal related to the July 2023 flares order?
p. 6
“Yes. LD still is in process. Maybe by this quarter end or by October, November, I think we'll come to know because a lot of processes are there.”
Vijay Kumar, page 6 of the filed PDF · View the filing
Management said demand is strong due to the war scenario, pushing prices up, though obtaining export licenses remains difficult.
Answered by T. V. Chowdary
Asked by Varun Jain: What is the demand-supply and pricing scenario for RDX and HMX internationally?
p. 11
“Present because war scenario and all those have pushed the demand up. So for the present, yes, prices are good.”
T. V. Chowdary, page 11 of the filed PDF · View the filing
Management attributed the decline to the product mix and dispatch pattern, saying they expect to recover in coming quarters.
Answered by Vijay Kumar
Asked by Deepak: Why did EBITDA margin decline sharply from 15% to 6% in Q1 FY27?
p. 12
“As our MD sir explained, there is a bouquet of products. So depending on product dispatch, it slightly varies. But overall, our guidance is about 15% to 20% is our yearly target.”
Vijay Kumar, page 12 of the filed PDF · View the filing
Management said the decline was due to delays in obtaining export licenses, not customer procurement issues, and expects resolution in coming quarters.
Answered by T. V. Chowdary
Asked by Deepak: What caused the revenue decline in Defense and Space and was it customer-related?
p. 9
“Some delays are there, which are because of the delay in getting the export licenses where the export orders are there.”
T. V. Chowdary, page 9 of the filed PDF · View the filing
Risks flagged
Global headwinds and supply chain disruptions delaying dispatches and project execution
p. 3
“The quarter was impacted by delays in dispatches and project execution, primarily due to ongoing global headwinds and supply chain disruptions across certain programs.”
T. V. Chowdary, page 3 of the filed PDF · View the filing
Elevated raw material costs pressuring margins
p. 3
“On the profitability front, operating performance was impacted by elevated raw material costs amid prevailing global market conditions.”
T. V. Chowdary, page 3 of the filed PDF · View the filing
Delays in receiving export licenses affecting deliveries
p. 9
“Particularly the export orders what we have, those deliveries got delayed because of the maritime problems.”
T. V. Chowdary, page 9 of the filed PDF · View the filing
Delay in imported components for finished products
p. 9
“Similarly, some of the components which we are importing for delivery to the finished product that is countermeasures, which are supposed to components are supposed to come from abroad. There also the delays have caused delays in deliveries.”
T. V. Chowdary, page 9 of the filed PDF · View the filing
Import license dependency from the importing country delaying export processing
p. 10
“Country where we are going to export, they have to issue an import license to the importer there.”
T. V. Chowdary, page 10 of the filed PDF · View the filing
Thin to negative margins in bulk explosives due to competitive pricing
p. 11
“Margins. In fact, Coal India, we have withdrawn last year also and then before last year also because of the prices, very low prices.”
T. V. Chowdary, page 11 of the filed PDF · View the filing
Delay in imported components for the mixing plant due to maritime shipping issues
p. 8
“some of the components which are imported by the supplier of the mixer, they got delayed because of the movement -- maritime movement of ships and all those.”
T. V. Chowdary, page 8 of the filed PDF · View the filing
Land parcel pricing issue delaying Andhra Pradesh expansion
p. 8
“Land parcel, the pricing was an issue. We were requesting the government for a reasonable price, which we can afford to install because as an explosive industry, we require large landed areas.”
T. V. Chowdary, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.