Premier Explosives Ltd reported operational momentum driven by defence manufacturing orders and outlined multi-year expansion plans across explosives, rocket motors and defence raw materials. The company said its facilities continued to run at varied utilisation levels in the second quarter of FY26 while capacity additions and new defence projects remained on track. New facilities for defence raw materials, ammunition and bomb filling are scheduled to come up under multi-phase investments planned in Odisha and Andhra Pradesh.
Revenue for the half year rose to INR 2.177 billion, supported largely by the defence and aerospace segment. The company’s current order book stands at INR 12.97 billion, representing a little more than two years of execution visibility. “Our current order book stands at INR 12.97 billion forming 3.1 times of financial year 2025 revenue,” said Managing Director T. V. Chowdary. He added that Premier is positioned to bid for and secure larger contracts following successful execution of older orders.
The company received an INR 4.2956 billion order from the Indian Air Force in October for the supply of countermeasure shafts and plates. Chowdary said demand for countermeasures would continue at steady levels, noting that after recent replenishment orders, annual procurement is expected to stabilise. “Approximately one third of it… at least 50 percent of what we are supplying will remain every year,” he said.
On the manufacturing front, utilisation remains uneven across facilities because of the diversity of products and dependence on free-issue materials from defence customers. Countermeasure production is operating at full capacity, small rocket motors at around 60 percent and large rocket motors at roughly one-third utilisation. Chowdary said delays in free-issue casings and hardware can affect throughput, especially for tactical missile and rocket lines.
The company continues to expand its energetic materials capability. The RDX and HMX facility expansion is progressing to schedule and is expected to begin production by the end of the financial year. Premier also exports RDX, HMX, rocket motors and commercial explosives to several international customers. “Several export rockets and rocket motors are also being designed and developed by us,” Chowdary said.
Premier stated that it has incorporated new automation and process-control systems in its manufacturing operations, following an expert panel’s recommendations after a fire incident at its large rocket motor unit. The company has begun integrating enhanced automation for handling, mixing and assembly operations to reduce risk and increase consistency in energetic material processing. Chowdary said the updated systems would be embedded in the rebuilt unit, along with additional safeguards and revised workflows. “The actions have been taken with the help of an expert panel and with our internal expertise,” he said.
A major new initiative is the planned defence manufacturing complex in Odisha, with a projected investment of INR 8 billion. The multi-phase programme will include facilities for defence raw materials, ammunition and bomb filling. Land identification is complete and formal allotment is expected by the end of the calendar year. “What we are planning to have in Odisha is for the defence raw materials… in addition to that, the filling of bombs and other things,” Chowdary said. The project will be executed over six to eight years and funded largely through internal accruals, with a qualified institutional placement kept as an option.
Premier has also signed a memorandum of understanding with the Andhra Pradesh government for a 400-acre land bank for defence explosives and related products. The company expects capital expenditure to be phased over several years in line with project sequencing.
Profitability was affected this quarter by delayed dispatches rather than production issues. Chief Financial Officer B. M. Vijay Kumar said several completed products were pending shipment, which compressed margins temporarily. The company maintained its full-year revenue guidance at INR 5–6 billion and expects to deliver an EBITDA margin in the range of 15 to 20 percent. “We will be in that range,” Chowdary said.
Premier Explosives specialises in the manufacture of defence explosives, rocket motors, countermeasures, warheads, high-explosive payloads, mines, ammunition and industrial explosives for domestic and export customers.
