Premier Explosives' profit jumped 60% even as a plant accident bit.
Consolidated net profit hit ₹45.82 crore in FY26, a year that included a ₹5.20 crore charge for an accident. The board is paying a dividend.
— 2 earlier stories on Premier Explosives Ltd. →What's new
- Consolidated net profit surged 60% to ₹45.82 crore from ₹28.73 crore in FY25.
- A ₹5.20 crore accident-related charge was offset by a ₹6.10 crore insurance receivable.
- Board recommended a final dividend of ₹0.50 per share, a 25% payout on face value.
Why this matters
The results prove Premier Explosives can absorb a significant operational hit and still grow profit sharply. The accident charge was neutralised by insurance, and the dividend shows management is confident enough in cash flow to return capital. The flat full-year revenue suggests the profit story is about cost control, not top-line expansion.
What we're watching
- Cash collection on the ₹6.10 crore insurance receivable.
- Whether Q4 revenue of ₹89.21 crore signals a trend or a one-off.
- Any follow-on costs or legal updates from the plant accident.
The full read
Premier Explosives' profit grew 60% to ₹45.82 crore in FY26. That included a ₹5.20 crore exceptional charge for ex-gratia payments after a plant accident. The charge was fully offset by a recognised ₹6.10 crore insurance claim receivable, turning an operational setback into a net credit. Standalone revenue slipped to ₹388.34 crore for the year, but Q4 revenue of ₹89.21 crore shows momentum. The board recommended a ₹0.50 per share dividend, a 25% payout. For a ₹3,879 crore market-cap firm, the numbers tell a simple story: the business absorbed a major one-off cost and still delivered sharp profit growth.
Questions answered
- How did the plant accident affect the financials?
- The company recorded a ₹5.20 crore exceptional charge for ex-gratia payments. This was more than covered by a ₹6.10 crore insurance claim receivable it recognised in the same period, resulting in a net positive impact.
- Why did consolidated profit grow so strongly if revenue was flat?
- Standalone revenue dipped slightly to ₹388.34 crore for the full year. The 60% profit jump indicates significantly improved operational efficiency or lower costs, allowing more of the revenue to convert to profit.
- What does the dividend signal?
- The ₹0.50 per share final dividend is a 25% payout on the equity face value. It signals management confidence in the company's near-term cash position after absorbing the accident costs.
- How did the fourth quarter perform?
- Q4 revenue of ₹89.21 crore showed positive momentum compared to the flat full-year trend. This quarterly uptick may indicate improving business conditions in the latter part of the year.
Story so far
All notes on PREMEXPLN →- 29 May 2026 · 5:45 PM IST Premier Explosives' profit jumped 60% even as a plant accident bit.
- today Premier Explosives targets ₹600-700 cr revenue, nearly doubling its FY26 run rate.
- 1d ago Premier Explosives profit jumps 60% despite factory accident charge