Stock Crash: Explosives manufacturer falls 40% from peak after a lower circuit

Shares of Premier Explosives are locked in a 10% lower circuit on Friday, May 23, in reaction to its fourth quarter results. With this fall, the stock has declined 40% from its recent 52-week high.

Revenue for the quarter fell by 15% from last year to ₹74 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 37% year-on-year.

EBITDA margin narrowed by nearly 450 basis points and net profit also nearly halved from last year to ₹3.7 crore.

Defence and space services revenue stood at ₹47.3 crore from ₹71.1 crore last year and was down 67% from the previous quarter's figure of ₹145.1 crore.

For the full year, the company's revenue was in-line with the guidance range between ₹400 crore to ₹500 crore, while margins at 14% were well below the 18% to 21% range guided earlier.

Defence and Space Services contributed to 81% of the overall topline in financial year 2025, while the figure stood at 68% in financial year 2024.

Order book, at the end of the financial year, stood at ₹750 crore.

HDFC Defence Fund has an 8% stake in Premier Explosives at the end of the March quarter, while retail shareholding stood at 29.69%.

Shares of Premier Explosives are down 10% on Friday at ₹546.2. The stock has corrected 40% from its 52-week high of ₹908. The stock also trades under Stage 1 of the Additional Surveillance Measures (ASM) framework.