Premier Explosives Ltd

- **FY '27 Capex Guidance:** Approximately INR 60 crores planned for expansion at Katepally and PDK plants. - **Capex Details:** Focus on additional capacity for propellant manufacturing, casting, rocket motor integration, and expansion of RDX and HMX plants. - **RDX and HMX Expansion:** Current capacity ramp-up from 100 tons to 600 tons expected to complete by FY '26 Q1 or Q2; no further expansion at Katepally or PDK afterward due to land constraints. - **Odisha Land Acquisition:** Land not yet finalized due to hilly and forest terrain. - **Andhra Land Allotment:** Andhra Pradesh government cleared land application, expected to add to future capex plans pending allotment. - **FY '28 Capex:** Not yet finalized; contingent on land allotment and project report submissions. Overall, capex plans are focused on capacity expansion for high-margin products and strategic land acquisitions for future growth.

- FY '27 revenue expected around INR500-600 crores conservatively, considering current order execution and inspection delays. - Major revenue contributors in FY '27: chaffs and flares orders (~INR430 crores) and explosive sales (RDX and HMX ~INR150 crores). - Total order book strong at INR1,294 crores, providing a healthy execution pipeline for next 2 years. - Expansion capex of about INR60 crores planned for FY '27 to increase capacities at Katepally and PDK plants. - RDX and HMX expansion to contribute around INR150-200 crores revenue in FY '27, ramping up slowly in initial quarters. - Longer-term growth driven by expanding product portfolio in countermeasures, mines, ammunition, and defense aerospace exports. - Stable EBITDA margins expected between 15% to 20% depending on the product mix. - Export orders (~INR450 crores) will execute over 12-24 months following export license approvals. - Additional capex contingent on land allotment for new facilities (Odisha/Andhra Pradesh).

- Revenue guidance for FY '27 is cautiously estimated at INR500-600 crores, lower than earlier optimism due to delays and operational challenges. - EBITDA margin expected between 15%-20%, influenced by product mix, with higher margin contribution from chaffs, flares, RDX, and HMX products. - Expansion in RDX and HMX capacity (100 to 600 tons) expected to contribute about INR150-200 crores revenue in FY '27, with production starting Q1 FY '27. - Capex guidance for FY '27 is around INR60 crores, focused on capacity expansion at Katepally and PDK plants. - Sustainable cash conversion cycle targeted near current ~90 days. - Anticipated steady order book around INR1,300 crores supports medium-term revenue visibility. - Export orders (~INR450 crores) expected to be executed within 1.5-2 years, enhancing top-line. - Overall, management expects steady operating profit growth with cautious optimism due to geopolitical and operational factors.

- Current total order book stands at approximately INR1,294 crores as of February 2026. - Defense segment forms the majority with about INR1,191 crores (92% of total). - Explosive and service segments each have about INR52 crores (4% each). - New order of INR430 crores received in October 2025 for chaffs and flares. - Pending orders (unexecuted portion) for countermeasures around INR110-112 crores. - Stock yet to be verified by defense valued at around INR30 crores. - Major bulk explosives orders currently not supplied to Coal India due to low prices; servicing Singareni Collieries. - Mines order in execution with about INR30 crores supplied; awaiting further RFPs. - Export orders valued roughly INR450 crores, expected to execute within 1.5 to 2 years. - Overall, the order book is strong, supporting revenue momentum for coming quarters.

- No explicit mention of any immediate or planned fundraising through debt or equity in the call. - Company currently has sufficient working capital lines with banks and is availing them as needed, resulting in lower finance cost. - For expansion, particularly Odisha capex, land allotment is pending; plans to raise funds after land allotment was mentioned. - Capex of around INR 60 crores planned for FY '27 primarily for Katepally and PDK plants, funded presumably through internal accruals or existing financing. - No clear statements regarding fresh equity or debt issuance; focus is on prudent capacity scaling with available resources. - Land allotment approvals are a prerequisite before new major fundraising decisions are taken.