Premier Explosives guides for 50% revenue growth, but a key plant slips again
Management targets ₹600-700 crore for FY27 on a record order book, but the Kattupalli expansion is now a November production date.
What's new
- FY27 revenue guidance of ₹600-700 crore, up from ₹388 crore in FY26.
- Order book at a record ₹1,569 crore, giving 4x revenue visibility over two to three years.
- Kattupalli RDX/HMX expansion commissioning pushed to September 2026, production in November.
Why this matters
The 50% growth target is aggressive but backed by a four-year order book. The problem is execution. The Kattupalli expansion, needed to deliver on new contracts, has slipped again. That's the second delay. The gap between the guidance ambition and the plant's timeline is now the core tension.
What we're watching
- Stability of alternative raw materials now accepted by DRDO.
- Whether the September 2026 commissioning date for Kattupalli holds.
- First-half execution to validate the ₹600-700 cr revenue run-rate.
The full read
Premier Explosives is guiding for ₹600-700 crore in FY27 revenue, a near-50% jump from FY26's ₹388 crore. The target rests on a ₹1,569 crore order book, a record, which gives the company 4x revenue cover. Management said the raw-material shortages that held back last year are fixed after DRDO accepted alternatives. The order book is deep. The problem is the plant. The Kattupalli expansion, meant to add RDX/HMX capacity, has slipped again. Commissioning is now September 2026, production in November. A big target needs the capacity to deliver it. This filing shows both.
Questions answered
- What is the scale of the FY27 revenue target?
- Management guided for ₹600-700 crore, which would be a near-50% increase from the ₹388 crore reported in FY26.
- Why did the company miss its FY26 target, and is it fixed?
- FY26 revenue fell short due to raw-material availability issues. Management stated the issue is now resolved after DRDO accepted alternative inputs.
- How significant is the current order book?
- The ₹1,569 crore order book is a record. Management says it provides 4x revenue visibility over the next two to three years.
- What is the latest timeline for the Kattupalli capacity expansion?
- Commissioning of the RDX/HMX expansion has been pushed to September 2026, with production expected in November. This is a further delay from earlier timelines.