Premier Explosives Limited, a Hyderabad-based defence manufacturing company, has secured a new order worth ₹7.83 crore from the Ministry of Defence (MoD) for the supply of countermeasures, with a scheduled completion timeline of 12 months.

The company, incorporated in 1980, has a dual presence in civilian and military markets, catering to mining, infrastructure, and construction sectors while also supplying critical defence components.

In its defence portfolio, the company has been a steady partner to India’s missile and rocket programs since 2003, when it began manufacturing solid propellants.

Its dedicated facility located at Peddakandukuru in Telangana’s Nalgonda district produces propellants used for tactical missiles and rocket systems such as Astra, Akash, Long-Range Surface-to-Air Missile (LRSAM), and Pinaka multi-barrel rocket launchers.

Additionally, Premier Explosives has diversified into specialty defence products like explosive bolts, pyro actuators, smoke markers, and cable cutters, which play a crucial role in missile integration, ejection systems, and defence readiness.

Financially, the company has demonstrated robust growth over the last fiscal year, underscoring its strengthened role in India’s defence supply chain.

In FY25, it reported revenue of ₹417 crore, a significant 54 percent rise compared to ₹271 crore recorded in FY24. Interestingly, while revenues showed a steep upward trajectory, profitability remained largely stable, with net profit registering ₹285 crore in FY25 compared to ₹281 crore in FY24.

This indicates that while operational scale expanded substantially, margins were maintained close to prior levels, possibly due to input cost fluctuations or expanded investment in capacity and R&D. The company’s exposure to defence orders, with assured government demand and repeat requirements for propellants and countermeasures, highlights its relatively secure revenue visibility in an otherwise cyclical explosives and infrastructure-linked business environment.

On the capital markets front, Premier Explosives’ stock has been on a strong upward momentum, reflecting both its improving fundamentals and investor optimism on the back of India’s rising defence indigenisation and procurement push. In the last six months, the stock has appreciated by 57 percent, climbing from ₹338 on March 10 to ₹532 on September 10.

This surge in valuation far outstripped broader market indices and was aligned with the government’s increased thrust on Atmanirbhar Bharat and defence-sector self-reliance, alongside steady orders for indigenous missile, rocket, and countermeasure systems where Premier Explosives serves as a critical subcontractor.

Despite this momentum, the stock corrected slightly in the latest trading session, closing at 0.74 percent lower; however, the medium-term trend remains positive given the consistent order inflows and robust revenue bookings.

Overall, the ₹7.83 crore order for countermeasures marks another steady addition to Premier Explosives’ defence order portfolio, reinforcing its role as an established and specialised supplier to the armed forces and India’s missile complexes.

With a growing balance sheet, diversified product line, and rising order book visibility, the company stands well-positioned to benefit from the expanding scale of India’s defence modernisation and indigenous production drive, even as it continues to balance its dual role of catering to both strategic defence requirements and commercial explosive needs across sectors.

Agencies