Q1 2027 Premier Explosives Ltd Earnings Call

August 14, 2026

Operator 2: Ladies and gentlemen, good day and welcome to the Q1 FY27 conference call hosted by Premier Explosives Limited. As a reminder, all participant lines will be in the listen only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar IR. Thank you and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY 2027 conference call hosted by Premier Explosives Limited. As a reminder, all participant lines will be in the listen only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar IR. Thank you and over to you, sir.

Speaker #1: Ladies and gentlemen, good day and welcome to the Q1 FY27 conference call hosted by Premier Explosives Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar IR.

Speaker #1: Thank you, and over to you, sir.

Speaker #2: Thank you, Steve. Good afternoon, everyone. I'm Akhilesh Gandhi, and on behalf of Stellar Investor Relations, I welcome you all to the Premier Explosives Q1 FY27 earnings conference call.

Moderator: Thank you, Steve. Good afternoon, everyone. I, Akhilesh Gandhi, on behalf of Stellar Investor Relations, welcome you all to the Premier Explosives Q1 FY27 earnings conference call. We shall be sharing the key operating and financial highlights for the first quarter ended on 30 June 2026. Today, we have with us the senior management team of Premier Explosives. Mainly we have Mr. T. V. Chaudhary, sir. He is our managing director. Along with we have Mr. Vijay Kumar. He is our chief financial officer. Before we begin, I would like to state that this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions, and expectations as of today. The statements made in today's call are not a guarantee of future performance and also involves unforeseen risks and uncertainties.

Akhilesh Gandhi: Thank you, Steve. Good afternoon, everyone. I, Akhilesh Gandhi, on behalf of Stellar Investor Relations, welcome you all to the Premier Explosives Q1 FY27 earnings conference call. We shall be sharing the key operating and financial highlights for the first quarter ended on 30 June 2026. Today, we have with us the senior management team of Premier Explosives. Mainly we have Mr. T. V. Chaudhary, sir. He is our managing director. Along with we have Mr. Vijay Kumar. He is our chief financial officer. Before we begin, I would like to state that this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions, and expectations as of today. The statements made in today's call are not a guarantee of future performance and also involves unforeseen risks and uncertainties.

Speaker #2: We shall be sharing the key operating and financial highlights for the first quarter, ended June 30, 2026. Today, we have with us the Senior Management Team of Premier Explosives. Mainly, we have Mr. T.

Speaker #2: V. Chaudhary, sir. He is our Managing Director. Along with him, we have Mr. Vijay G. Kumar, who is our Chief Financial Officer. Before we begin, I would like to state that this call may contain some forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today.

Speaker #2: The statements made in today's call are not a guarantee of future performance and also involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after the statement is made.

Moderator: The company also undertakes no obligation to update any forward-looking statements to reflect development that occur after the statement is made. Document relating to the company's financial performance, including the investor presentation, is already been uploaded on the stock exchange. With that, I now invite Mr. T. V. Chaudhary, sir, to share his opening remarks on the company's performance for the first quarter. Thank you and over to you, sir.

Akhilesh Gandhi: The company also undertakes no obligation to update any forward-looking statements to reflect development that occur after the statement is made. Document relating to the company's financial performance, including the investor presentation, is already been uploaded on the stock exchange. With that, I now invite Mr. T. V. Chaudhary, sir, to share his opening remarks on the company's performance for the first quarter. Thank you and over to you, sir.

Speaker #2: Documents relating to the company's financial performance, including the investor presentation, have already been uploaded on the stock exchange. With that, I now invite Mr. T.

Speaker #2: Mr. V. Chaudhary, sir, to share his opening remarks on the company's performance for the first quarter. Thank you, and over to you, sir.

Speaker #3: Thank you, Mr. Akhilesh, and good afternoon, everyone. I welcome you all to the earnings conference call of Premier Explosives for the first quarter ended June 30, 2026.

T. V. Chowdary: Thank you, Mr. Akhilesh, and good afternoon, everyone. I welcome you all to the earnings conference call of Premier Explosives for the first quarter ended 30 June 2026. Thank you for joining us. I trust you have reviewed our Q1 FY27 results, along with the investor presentation available on the stock exchanges and on our website. During Q1 FY27, we reported revenue of INR 102.6 crores, reflecting a decline of 28% year on year. The quarter was impacted by delays in dispatches and project execution, primarily due to ongoing global headwinds and supply chain disruptions across certain programs. While these factors affected near-term revenue recognition, the underlying demand environment for our products and solutions remains robust. On the profitability front, operating performance was impacted by elevated raw material costs amid prevailing global market conditions. The increase in input prices created temporary pressure on margins during the quarter.

Speaker #3: Thank you for joining us. I trust you have reviewed our Q1 FY27 results, along with the investor presentation available on the stock exchanges and on our website.

Speaker #3: During Q1 FY27, we reported revenue of ₹102.6 crore, reflecting a decline of 28% year-on-year. The quarter was impacted by delays in dispatches and project execution.

Speaker #3: This is primarily due to ongoing global headwinds and supply chain disruptions across certain programs. While these factors affected near-term revenue recognition, the underlying demand environment for our products and solutions remains robust.

Speaker #3: On the profitability front, operating performance was impacted by elevated raw material costs amid prevailing global market conditions. The increase in input prices created temporary pressure on margins during the quarter.

Speaker #3: However, we continue to focus on operational efficiency, cost optimization, and disciplined execution to mitigate these challenges. Encouragingly, we believe that many of these external headwinds are gradually easing as supply chains stabilize and execution improves.

T. V. Chowdary: However, we continue to focus on operational efficiency, cost optimization, and disciplined execution to mitigate these challenges. Encouragingly, we believe that many of these external headwinds are gradually easing as supply chains stabilize and execution improves. We expect a stronger operational performance and better revenue conversion in the coming quarters. Most importantly, our business fundamentals remain strong. As of today, our order book stands at INR 1,393 crores, with approximately 94% of the order book coming from defense segment. The healthy order backlog provides strong revenue visibility and reinforces our confidence in the company's growth trajectory. Also, regarding the recent acquisition by Apollo Microsystems, we believe this marks a significant milestone in Premier Explosives' growth journey and opens up exciting opportunities for the company.

Speaker #3: We expect a stronger operational performance and better revenue conversion in the coming quarters. Most importantly, our business fundamentals remain strong. As of today, our order book stands at ₹1,393 crore.

Speaker #3: With approximately 94% of the order book coming from different segments, the healthy order backlog provides strong revenue visibility and reinforces our confidence in the company's growth trajectory.

Speaker #3: Also, regarding the recent acquisition of Apollo Microsystems — acquisition by Apollo Microsystems — we believe this marks a significant milestone in Premier Explosives' growth journey and opens up exciting opportunities for the company.

Speaker #3: The partnership brings together Apollo's strengths in defense electronics and mission-critical systems with Premier's capability in energetic materials, rocket motors, ammunition, and propulsion systems, creating a broader and more integrated defense platform.

T. V. Chowdary: The partnership brings together Apollo's strengths in defense electronics and mission-critical systems with Premier's capability in energetic materials, rocket motors, ammunition, and propulsion systems, creating a broader and more integrated defense platform. For Premier, the strategic benefits are clear: enhanced access to larger and more complex defense programs, stronger technology and R&D capabilities, a wider customer reach, and improved operational efficiencies through scale and collaboration. The combined strengths will also strengthen our position in India's growing defense indigenization and export opportunities. We believe this partnership will accelerate Premier's next phase of growth, strengthen our competitive positioning, and create long-term value for all stakeholders. We remain excited about the opportunities ahead and look forward to unlocking the full potential of this partnership. Now, I request Mr. Vijay Kumar, our CFO, to share the financial performance.

Speaker #3: For Premier, the strategic benefits are clear: enhanced access to larger and more complex defense programs, stronger technology and R&D capabilities, a wider customer reach, and improved operational efficiencies through scale and collaboration.

Speaker #3: The combined strengths will also strengthen our position in India's growing defense indigenization and export opportunities. We believe this partnership will accelerate Premier's next phase of growth, strengthen our competitive positioning, and create long-term value for all stakeholders.

Speaker #3: We remain excited about the opportunities ahead and look forward to unlocking the full potential of this partnership. Now, I request Mr. Vijay Kumar, our CFO, to share the financial performance.

Speaker #2: Thank you, sir. Good afternoon, everyone. The results presentation for the quarter ended June 30, 2026, has been uploaded on the stock exchanges and on the company's website.

Vijay Kumar: Thank you, sir. Good afternoon, everyone. The results presentation for the quarter ended 30 June 2026, has been uploaded on the stock exchanges and on the company's website. I believe you may have gone through the same. The revenue from operations for Q1 FY27 de-grew by 28% year on year to INR 102.6 crores. Our EBIT for Q1 FY27 de-grew by 80% year on year to INR 4.8 crores. The EBIT margins for the quarter stands at 4.7%. Our net profit decreased by 80% year on year to INR 3 crores. The PAT margins for the quarter stands at 3%. Now, coming to the order book. The company's current order book stands at INR 1,393 crores, out of which defense segment order is majority of INR 1,309 crores, which is equal to 94% of the total order book.

Speaker #2: I believe you may have gone through the same. The revenue from operations for Q1 FY27 declined by 28% year on year, to ₹102.6 crore.

Speaker #2: Our EBIT for Q1 FY27 declined by 80% year on year, to ₹4.8 crores. The EBIT margin for the quarter stands at 4.7%. Our net profit decreased by 80% year on year, to ₹3 crores.

Speaker #2: The PAT margins for the quarter stand at 3%. Now, coming to the order book, the company's current order book stands at ₹1,393 crores, out of which the defense segment order is the majority at ₹1,309 crores, which is equal to 94% of the total order book.

Speaker #2: The explosives segment stands at ₹42 crores, which is equal to 3% of the total order book, and the services segment—which is operational and maintenance services—also stands at ₹42 crores, which is equal to 3% of the total order book.

Vijay Kumar: Explosives segment stands at INR 42 crores, which is equal to 3% of the total order book, and service segment, which is operational and maintenance services segment, stands at INR 42 crores, which is equal to 3% of the total order book. This order book reflects the strong growth visibility we see over the coming years. We remain confident that, supported by sustained execution momentum, continued development of new products, and our ongoing expansion initiatives, the company will continue to maintain a strong growth trajectory in the forthcoming quarters. With this, we will now open the floor for questions and answers. Thank you.

Speaker #2: This order book reflects the strong growth visibility we see over the coming years. We remain confident that, supported by sustained execution momentum, continued development of new products, and our ongoing expansion initiatives, the company will continue to maintain a strong growth trajectory in the forthcoming quarters.

Speaker #2: With this, we will now open the floor for questions and answers. Thank you.

Speaker #1: Thank you, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star, then one, on their touch-tone telephone.

Operator 2: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press * and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Paras Kulkarni with Ignite Capital. Please go ahead.

Operator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press * and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Paras Kulkarni with Ignite Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Parash Kulkarni with Ignite Capital.

Speaker #1: Please go ahead.

Paras Kulkarni: Hi. Thank you for taking my questions. Firstly, on the cost side, we have seen a sharp decline in other expenses from INR 20 crores to INR 11 crores in Q1. So, if I want to build it for the entire year, what is the run rate cost do we expect for the full year? Also what attributes to this decline?

Speaker #4: Hi. Thank you for taking my question. Firstly, on the cost side, we have seen a sharp decline in other expenses from ₹20 crores to ₹11 crores in one quarter.

Speaker #4: So, if I were to build it for the entire year, what is the run rate cost we expect for the previous period? And also, what contributed to this decrease?

Speaker #2: Earlier, in earlier quarters, there were provisions—expected credit loss provision—and there was a decline in forex, a decrease in forex losses. So those are the reasons it is not comparable for an exact, apple-to-apple comparison.

Vijay Kumar: In earlier quarters, there were provisions, expected credit loss provision, and there was a decline in Forex, decrease in Forex losses. So it is not comparable for exact apple to apple. There is a reduction in cost.

Speaker #2: There is a reduction in cost.

Speaker #4: Okay. So this.

Paras Kulkarni: Okay.

Vijay Kumar: Other expense concerns.

Speaker #2: There are other concerns. Yeah, yeah.

Paras Kulkarni: Sure. Is this INR 11 crores sort of sustainable run rate going ahead?

Speaker #4: Sure. So, is this ₹11 crore for the sustainable run rate going there?

Speaker #2: Yeah, you can say it's around 9 crores kind of thing. You can see as of 30th June '25 also, it is around 9 crores.

Vijay Kumar: Yeah. You can say around INR 9 crores kind of thing. You can see in 30 June 2025 also it is around INR 9 crores. So INR 9 to 10 kind of.

Speaker #2: So, 9 to 10, kind of.

Speaker #4: Okay, understood. And now, coming to the gross margin, as you explained in your opening remarks, the political situation affected the margins. So, looking at FY27, where do we see the gross margin?

Paras Kulkarni: Okay. Understood. Now coming to the gross margin. You explained in your opening remarks that the geopolitical situation affected the margin. Looking at FY27, where do we see the gross margin? Do we see that improving sequentially or should we maintain the 35% as a decent assumption?

Speaker #4: Do we see that improving sequentially, or should we maintain the 35% as a decent assumption?

Vijay Kumar: Yeah. Margins will definitely improve because we have different products and there is a bouquet of products. Depending on the dispatches of the product, it keeps on increasing.

Speaker #2: Yeah, margins will definitely improve because we have different products in the VOCAB products. So, depending on the dispatches of the products, it keeps on increasing.

T. V. Chowdary: Yeah. Order book and execution pattern. We have already this quarter's movement of materials and all those goods gives us the confidence that it will improve in the coming quarters.

Speaker #3: Yeah. The LG order book and execution pattern—we already have this quarter's movement of materials and all those goods—give us confidence that it will improve in the coming quarter.

Paras Kulkarni: Okay. Could you please quantify as to whether this is the baseline and we should assume 40% kind of gross margin is going ahead, looking at least for this year?

Speaker #4: Okay. So could you please clarify whether this is a baseline, and should we assume a 40% kind of gross margin is going on, looking at Q4, which we do?

Speaker #2: Even in earlier calendar flows also, we said that we are targeting an EBITDA of 15% to 20%. So I think along the same lines we are trying to achieve that right now.

Vijay Kumar: Even in earlier conference calls also, we said that we are targeting an EBITDA of 15% to 20%. I think same line we are trying to achieve it now.

Speaker #4: Okay. Now, you mentioned about enhancing your product offering and you said that we would also be looking at drones and UAVs. So, what is the current state of development here?

Paras Kulkarni: Okay. Ma'am, you mentioned about enhancing your product offerings and you said that we will be also looking at drones and UAV. What is the current stage of development here? Are we trying to develop our own UAV technologies or we will be partnering with other companies? Could you throw some light?

Speaker #4: I mean, do are we trying to develop our own UAV technologies or or we are we would be partnering with other companies? So could you throw some light on that?

Speaker #3: We are not developing our own drone technologies—that is for the birds and all those. We are partnering with several drone manufacturing industries for the payloads.

T. V. Chowdary: We are not developing our own drone technologies. That is for the birds and all those. We are partnering with several drone manufacturing industries for the payloads. We are making the payloads and then participating along with them as a partner, not independent standalone suppliers.

Speaker #3: We are making the payloads and then participating along with them in this, as a partner—not as an independent, standalone supplier.

Paras Kulkarni: Okay. Understood. Now with Apollo taking over, do you expect any orders from the naval side of the business? Because they have got good relations with the Indian Navy and they have got orders with respect to sea mines and submarines. Do you see any traction going ahead in the order book from naval side?

Speaker #4: Okay. Okay, understood. And now, with Apollo taking up—I mean, taking over—do you expect any orders from the naval side of the business?

Speaker #4: Because they have got good relations with the Navy, and they have got orders with respect to the sea mines and submarines.

Speaker #4: So, do you see any traction going ahead in the order book from the naval side?

Speaker #3: Yeah. We are hoping that this association will help us to strategically strengthen ourselves, but the total potential of this will be known only by December.

T. V. Chowdary: Yeah. We are hoping that this association will help us to strategically strengthen ourselves. But the total potential of this, we will come to know by December only.

Speaker #4: Okay. By December. And last question, regarding the export licenses—there was talk in the fourth quarter about around 400 crores of export licenses that we have not yet received.

Paras Kulkarni: Okay. By December. Last question, around the export licenses. In Q4, we had talked about around for INR 400 crores of export license we have not received. When do we sort of-- Have we received them currently? Because last time you had said that we would be expecting to get those licenses within three to four months. What is the status there and what is the export portion which we will be expecting in FY27 from the current order book execution?

Speaker #4: So, when do we, sort of, have—have we received them currently? Because last time we had said that we would be expecting to get those licenses within three to four months.

Speaker #4: So, what is the status there? And what is the export portion that we would be expecting in FY27 from the current order book execution?

Speaker #3: Yes. In one week, we have received several export licenses, and we have also moved out the material from the factories. Some of them are in the pipeline.

T. V. Chowdary: Yeah. Past one week we have received several export licenses, and we have also moved out the material from the factories. Some of them are in pipeline. We are expecting them to arrive in one or two days. It's quite satisfactory, the receipt of export licenses and what material is moving out. All the backlogs of previous quarter, I think will be completing in this quarter.

Speaker #3: We are expecting them to arrive in one or two days, so it's quite satisfactory. Receipt of export licenses and what material is moving out.

Speaker #3: All the backlogs of previous quarter, I think, will be completed in this quarter.

Paras Kulkarni: Okay. Is it fair enough to expect around INR 200, 300 crore of export in 2027, as category?

Speaker #4: Okay, so is it fair enough to expect around ₹200–₹300 crore of exports in '27 as stated earlier?

Speaker #3: Yeah. We are targeting around ₹200 crores this quarter, based on ₹150 to ₹200 crores.

T. V. Chowdary: Yeah. We are targeting some INR 200 crores in this quarter based on INR 150 to 200 crores.

Speaker #4: Okay, understood. I'll go and make the call. Thank you for answering.

Paras Kulkarni: Okay, understood. Thank you very much. Thank you for answering.

Speaker #1: Thank you. The next question comes from the line of Arun Chen with Dolet Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Varun Jain with Dolat Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Varun Jain with Dolat Capital. Please go ahead.

Speaker #2: Yeah, hi. Good afternoon, sir. I have a couple of questions. Starting with the July 2023 flares order—this was guided for completion in Q1 FY27.

Varun Jain [Research Associate: Yeah. Hi, good afternoon, sir. I have a couple of questions. Starting with this July 2023 flares order. This was guided for completion in Q1 FY27 and the INR 30 crore of LD reversal was expected. Any update on that?

Varun Jain: Yeah. Hi, good afternoon, sir. I have a couple of questions. Starting with this July 2023 flares order. This was guided for completion in Q1 FY27 and the INR 30 crore of LD reversal was expected. Any update on that?

Speaker #2: And the 30 crore of LD reversal was expected. So, any update on that? Yeah, LD is still in process. Maybe by this quarter end or by October normal, I think we'll come to know.

Vijay Kumar: Yeah. LD still is in process. Maybe by this quarter end or by October-November, I think we will come to know because lot of processes are there. It is going on. As far as flares are concerned?

Speaker #2: Because a lot of processes are there. It's going on. And as far as flares are concerned, yeah, further, there are some in the pipeline and we have started production in our own plant and all those.

T. V. Chowdary: Yeah. Orders in pipeline and we have started production in our own plant and all those. We are hoping that this will contribute well in the coming quarters.

Speaker #2: So we are hoping that this will contribute well in the coming quarters. No, no. The earlier order, we are going to complete it in another three to four months.

Vijay Kumar: Earlier order also we are going to complete it in another three to four months. There is a backlog of about INR 75 crores. That will be completed in the next four or five months.

Speaker #2: There is a backlog of about ₹75 crore. So that will be completed in the next four or five months.

Speaker #4: Is this done?

Varun Jain [Research Associate: It is done.

Varun Jain: It is done.

Vijay Kumar: Okay.

Speaker #2: So, just for clarity, sir, this July 2023 order will get completed in the next four to five months. Is that right? Yes. Got it.

Varun Jain [Research Associate: Just for clarity, sir, this July 2023 order will get completed in the next four or five months. Is that right?

Varun Jain: Just for clarity, sir, this July 2023 order will get completed in the next four or five months. Is that right?

Vijay Kumar: Yes.

Varun Jain [Research Associate: Got it.

Varun Jain: Got it.

Vijay Kumar: R&D chaff is completed.

Speaker #2: Okay. And sir, earlier management had guided for this ₹430 crore order of October 2025, that approximately two-thirds will be done in FY27. So that would be close to ₹285 crore.

Varun Jain [Research Associate: Okay. And sir, earlier management had guided for this INR 430 crore order of October 2025, that approximately two-thirds will be done in FY27, so that would be close to INR 285 crore. Is that guidance on track? And how much did we do in Q1?

Varun Jain: Okay. And sir, earlier management had guided for this INR 430 crore order of October 2025, that approximately two-thirds will be done in FY27, so that would be close to INR 285 crore. Is that guidance on track? And how much did we do in Q1?

Speaker #2: So, is that guidance on track? And how much did we do in Q1? Q1, it was only 21 crore, kind of thing.

Vijay Kumar: Q1, it was only INR 21 crore kind of thing. And in the second quarter, we are expecting a better number.

Speaker #2: And in the second quarter, we are expecting a better number. And for the entire year, will we do close to 285 or something?

Varun Jain [Research Associate: And for the entire year, will we do close to INR 285 or something?

Varun Jain: And for the entire year, will we do close to INR 285 or something?

Speaker #2: No, no. We had to complete the order before this financial year. So, this entire ₹430 crore will be done in FY27? Yeah. Do we have the capability—like, the capacity—to do the entire order?

Vijay Kumar: No, we have to complete the order before the end this financial year.

Varun Jain [Research Associate: So the entire INR 430 crore will be done in FY27?

Varun Jain: So the entire INR 430 crore will be done in FY27?

Vijay Kumar: Yeah.

Varun Jain [Research Associate: So we have the capability, like the capacity to do the entire order?

Varun Jain: So we have the capability, like the capacity to do the entire order?

Speaker #2: Yes, yes. Yeah, we have. The shaft material payload—we are dependent on imports, which we have completed, we have executed. The flares we do in our own plant.

Vijay Kumar: Yes.

T. V. Chowdary: Yeah, we have. The chaff material payload, we are dependent on imports, which we have completed, we have executed. The flares we do in our own plant, so we have the capability to complete.

Speaker #2: So, we have the capability to complete.

Speaker #4: Got it, sir. And sir, on the guidance front, I think in FY27, management had guided for ₹600–700 crore. So, we have done close to ₹103 crore in Q1 this year.

Varun Jain [Research Associate: Got it, sir. And sir, on the guidance front, I think in FY27, management had guided for INR 600 crore, INR 700 crore. So we have done close to INR 103 crore in this Q1. So in the balance 9 months, can we do INR 500 crore, INR 600 crore more? I mean, do we have that kind of capacity and

Varun Jain: Got it, sir. And sir, on the guidance front, I think in FY27, management had guided for INR 600 crore, INR 700 crore. So we have done close to INR 103 crore in this Q1. So in the balance 9 months, can we do INR 500 crore, INR 600 crore more? I mean, do we have that kind of capacity and

Speaker #4: So, in the balance nine months, can we do 5,600 crore more? I mean, do we have that kind of capacity, and...?

Speaker #3: Yeah. Capacity was like I explained. We have the capacity for flares and other products to make, whereas for items like shafts, we are dependent on imports, where it depends on the conditions prevailing there.

T. V. Chowdary: Yeah. Capacity was like I explained. We have the capacity for flares and other products to make. Whereas for items like chaffs, we are dependent on imports where it depends on the conditions prevailing there. But otherwise, flares and other things are made in our own facility, and then we will be able to execute that.

Speaker #3: But otherwise, flares and other things are made in our own facility, and then we'll be able to execute that.

Speaker #2: So, you retain the ₹600 crore guidance for FY27. Is that right?

Varun Jain [Research Associate: So you retain the INR 600 crore guidance for FY27. Is that right?

Varun Jain: So you retain the INR 600 crore guidance for FY27. Is that right?

Speaker #3: Yeah.

T. V. Chowdary: Yeah.

Speaker #2: Okay, sir. Got it. And sir, last quarter you mentioned that there was a new alternate raw material, which you had sent to DRDO for approval, and this was going to be used for these landmines and loitering munitions for drones. Any update on that?

Varun Jain [Research Associate: Okay, sir. Got it. Last quarter, you mentioned that there was a new alternate raw material which you had sent to DRDO for approval, and this was going to be used for these land mines and loitering munitions for drones. Any update on that?

Varun Jain: Okay, sir. Got it. Last quarter, you mentioned that there was a new alternate raw material which you had sent to DRDO for approval, and this was going to be used for these land mines and loitering munitions for drones. Any update on that?

Speaker #3: Yeah, there is considerable progress on it. They are conducting the tests of our material that we have proposed, and that is being done by DRDO, ARDE, and HMRL.

T. V. Chowdary: Yeah, there is a considerable progress on it. They are conducting the tests of our material, what we have proposed, and that is being done by DRDO, ARDE, and HMRL. Once it is complete, I think they will give us a clearance to use that material. That will open a door for completely getting into mines, that is Adrish mines and Ulka mines, which are very much in demand from our Indian Army.

Speaker #3: Once it is complete, I think they will give us clearance to use that material. That will open a door for completely getting into mines—that is, Adrishi mines and Ulka mines—which are very much in demand.

Speaker #2: So, when do we expect any completion of the survey by DRDO?

Varun Jain [Research Associate: By when do we expect any completion of survey by DRDO?

Varun Jain: By when do we expect any completion of survey by DRDO?

Speaker #3: The hardware part we have assembled all together, and then other components, and then chemicals. It's going on. It may take another six months.

T. V. Chowdary: Hardware part we have assembled all together, and then other components and then chemicals, it is going on. It may take another six months.

Speaker #2: Another six months. Okay.

Varun Jain [Research Associate: Another six months. Okay.

Varun Jain: Another six months. Okay.

Speaker #3: Yeah.

T. V. Chowdary: Yeah.

Speaker #2: Got it, sir. And so, on the Katapali, this capex—so we had earlier said that by Q1, some assets will start commissioning, then by Q2, some will start.

Varun Jain [Research Associate: Got it, sir. On the Katepally, this CapEx, we had earlier said that by Q1 some assets will start commissioning, then by Q2 some will start. Did we see anything commissioned by end of Q1 or even till now? Because we are halfway through Q2 also.

Varun Jain: Got it, sir. On the Katepally, this CapEx, we had earlier said that by Q1 some assets will start commissioning, then by Q2 some will start. Did we see anything commissioned by end of Q1 or even till now? Because we are halfway through Q2 also.

Speaker #2: So did we see anything commissioned by the end of Q1 or even till now, because we are halfway through Q2 also?

T. V. Chowdary: The integration of the pipelines and the plant and machinery erection and installation for the RDX and HMX production is almost complete. We are expecting to take up the water trials in September month. That water trials will take a month, and after that it will come into production of the products intended for. That is about RDX and HMX. About mixing plant where 2.5 tons planetary mixer is installed, some of the components which are imported by the supplier of the mixer, they got delayed because of the maritime movement of ships and all those. Now we have put pressure on them and then made them ship it by air. That also we are hoping that end of September we will be ready with the plant and then we will take up the dummy trials.

Speaker #3: The integration of the pipelines and the plant and machinery erection and installation for the RDX and HMX production is almost complete, and then we are expecting to take up the water trials in September.

Speaker #3: The water trials will take a month, and after that, it will come into production of the products intended for. That is about RDX and HMX.

Speaker #3: And about the mixing plant, where a two-and-a-half-ton planetary mixer is installed, some of the components which are imported by the supplier of the mixer got delayed because of the maritime movement of ships and all those.

Speaker #3: So, now we have put pressure on them and made them ship it by air. We are also hoping that by the end of September, we'll be ready with the plant, and then we'll take up the dummy trials.

Varun Jain [Research Associate: Got it, sir. On the Andhra Pradesh, this expansion plan, after the acquisition of promoter stake by Apollo, are we continuing with it and have we finalized a land parcel for it?

Varun Jain: Got it, sir. On the Andhra Pradesh, this expansion plan, after the acquisition of promoter stake by Apollo, are we continuing with it and have we finalized a land parcel for it?

Speaker #2: Got it, sir. And sir, on the Andhra Pradesh expansion plan, after the acquisition of promoter stake by Apollo, are we continuing with it, and have we finalized the land parcel for it?

T. V. Chowdary: Land parcel, the pricing was an issue. We were requesting the government for a reasonable price which we can afford to install, because as an explosive industry, we require large landed areas. Such large area, the price makes a big difference. We have requested the government for reworking the price and then to give us a better price through which we can gain fully benefit it. At present it is at that status.

Speaker #3: Land parcel pricing was an issue. We were requesting the government for a reasonable price, which we can afford to install, because as an explosives industry we require large landed areas.

Speaker #3: Such a large area, the price makes a big difference. So we have requested the government to rework the price and give us a better price, through which we can be gainfully benefited.

Speaker #3: So, at present, it is at that status.

Speaker #2: And this expansion will be going on even post, like the Apollo will continue with it, right?

Varun Jain [Research Associate: This expansion will be going on even post, like Apollo will continue with it, right?

Varun Jain: This expansion will be going on even post, like Apollo will continue with it, right?

Speaker #3: Yeah. The requirements are there, which I definitely think once they come into the picture, then we'll be taking a call after making the presentation of our...

T. V. Chowdary: Yeah, the requirements are there, which definitely I think once they come into the picture and then we will be taking a call after making the presentation of our.

Speaker #2: Okay sir. Got it. And just the last one from my side sir what what changes do you expect like post Apollo like what with the new capabilities they bring in what more can you do really?

Varun Jain [Research Associate: Okay, sir. Got it. Just the last one from my side, sir. What changes do you expect post Apollo? With the new capabilities they bring in, what more can you do really? Any synergy benefit, any guidance there?

Varun Jain: Okay, sir. Got it. Just the last one from my side, sir. What changes do you expect post Apollo? With the new capabilities they bring in, what more can you do really? Any synergy benefit, any guidance there?

Speaker #2: Any synergy benefit or any guidance there?

T. V. Chowdary: We are expecting their capabilities are in the defense electronics. In which area we have no expertise. We are expecting that we will be able to get a good gainful benefits from them with their expertise. Then, the systems which work integrated with electronics and high energy materials, that is where I think we are looking forward to be better strategically, to be better on that. These all will come, more details will come probably by the next quarter.

Speaker #3: We are expecting there there is a capabilities are in the different electronics. So where in which area where we have no expertise. So we are expecting that we'll be able to get a good gainful benefits from them with their expertise and then the systems which where you work integrated with the electronics and high energy materials that's where I think we can definitely we are looking forward to do a better strategically beyond to be better on that.

Speaker #3: More details on these will probably come by the next quarter.

Speaker #2: Okay, sir. Got it. Thank you, and all the best.

Varun Jain [Research Associate: Okay, sir. Got it. Thank you and all the best.

Varun Jain: Okay, sir. Got it. Thank you and all the best.

Speaker #3: Thanks.

T. V. Chowdary: Thanks.

Speaker #1: Thank you. The next question comes from the line of Chandresh. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Chandresh with Investshore. Please go ahead.

Operator: Thank you. The next question comes from the line of Chandresh with Investshore. Please go ahead.

Speaker #2: Yeah. Hi, sir. Thank you for the opportunity. So, two questions on the order book side. Can you provide the program-wise breakup of the order book?

[Analyst] (Investshore): Yeah. Hi, sir. Thank you for the opportunity. Sir, two questions on the order book side. Can you provide the program-wise breakup of the order book?

Speaker #3: You can only give a breakup of industrial explosives and defense, that's it.

T. V. Chowdary: Can only give a breakup of industrial explosives and defense. That is it.

Speaker #2: Yeah. About 95% defense orders and 6% regular explosives—industrial explosives. Okay. Okay. And sir, secondly, with respect to this Project Kosh, I mean BEL is also expecting about 30 to 40,000, so on that side, how much is Premier Explosives expecting in the QR from that category?

Vijay Kumar: We have 95% defense orders and 6% industrial explosives.

[Analyst] (Investshore): Okay. And sir, secondly, with respect to this project push, BEL is also expecting about 30,000 to 40,000. On that side, how much is Premier Explosives expecting in the QRSAM category?

Speaker #3: Couldn't get the question. Could you please repeat it?

T. V. Chowdary: Could not get the question. Could you please repeat?

Speaker #2: Oh, basically, I mean the guidance for how much you are expecting under the, yeah.

[Analyst] (Investshore): I mean the QRSAM, how much are you expecting under Q3?

T. V. Chowdary: QRSAM. No, if you have participated in a tender and something, then we can say that, but tenders itself are not yet called.

Speaker #3: Yeah, no. If you have participated in a tender and something, then we can say that the tenders themselves are not at call.

Speaker #2: Okay, got it. Yeah. Thank you so much, sir.

[Analyst] (Investshore): Okay, got it. Yeah. Thank you so much, sir.

Speaker #1: Thank you. Participants who wish to ask a question may press star one. The next question comes from Faris Kulkarni with Ignite Capital.

Operator 2: Thank you. Participants who wish to ask a question, may press star and one. The next question comes from the line of Paras Kulkarni with Ignite Capital. Please go ahead.

Operator: Thank you. Participants who wish to ask a question, may press star and one. The next question comes from the line of Paras Kulkarni with Ignite Capital. Please go ahead.

Speaker #1: Please go ahead.

Paras Kulkarni: Yes, just one question on the order book side, sir. What is the order inflow guidance for FY27?

Speaker #4: Yes, just one question on the order book side, too. What is the order inflow guidance for FY27?

Speaker #2: Already, we have 1,393. So, for FY27, we are expecting another 200 to 300 crores.

Vijay Kumar: Already we have INR 1,393. So FY27, we are expecting another INR 200 to 300 crores.

Paras Kulkarni: Okay. INR 200 to 300 crore. The execution will be in FY27 itself or ahead?

Speaker #4: Okay, ₹200 to ₹300 crore. And the execution will be in FY27 itself, or?

Speaker #2: No, no. All our orders are for the next two years, so we are expecting a run rate of ₹1,000 crore plus, based on whatever we execute after that.

Vijay Kumar: No. All our orders are for next two years. We are expecting a run rate of INR 1,000 crores plus, whatever we execute and after that.

Paras Kulkarni: Okay. Understood. Thank you.

Speaker #4: Okay. Okay. Yeah. Understood. Thanks.

Speaker #1: Thank you. The next question comes from Deepak, an individual investor. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Deepak, an individual investor. Please go ahead.

Operator: Thank you. The next question comes from the line of Deepak, an individual investor. Please go ahead.

[Company Representative]: Hello. Hello.

Speaker #4: Hello. Hello.

Speaker #1: Yes, sir. Your order book—please, go ahead.

Operator 2: Yes, sir, you are audible. Please go ahead.

Operator: Yes, sir, you are audible. Please go ahead.

[Company Representative]: Okay. Hi. Good afternoon, sir. I have particular question on, in Q1 FY27, revenue declined by 28% year-on-year, due to dispatch and execution delays. Which specific project were impacted, and what portion of a deferred revenue is expected to recover during FY27?

Speaker #4: Okay. Hi. Good afternoon sir. So I have particular question on in Q1 FY27 revenue declined by 28% year on year. Did you dispatch an execution delay which is specific project are were impacted and what portion of a deferred revenue is expected to recover during FY27?

T. V. Chowdary: Particularly the export orders, what we have, those deliveries were delayed because of the maritime problems. Similarly, some of the components which we are importing for delivery to the finished product, that is countermeasures, which are components were supposed to come from abroad. There also, the delays have caused delays in deliveries. This is the main reasons for the things which we are expecting to overcome or complete those executions in the current second quarter, that is.

Speaker #3: Particularly the export orders what we have those deliveries got delayed because of the maritime problems. Similarly some of the components which we are importing for delivery to the finished product that is countermeasures which are supposed to components are supposed to come from abroad there also the delays have caused delays in deliveries.

Speaker #3: This is the main reason for the things which we are expecting to overcome or complete—those executions—in the current quarter, second quarter, that is.

Speaker #4: Okay, understood, sir. And in Defense and Space, revenue declined by 35% year-on-year despite a strong defense environment, as you mentioned. Was this purely timing-related, or have there been delays in the customer procurement and acceptance process?

[Company Representative]: Okay. Understood, sir. In defense and space, revenue declined by 35% year-on-year, despite a strong defense environment, as you mentioned. Was it purely timing related, or there have been delay in a customer procurement and acceptance process?

T. V. Chowdary: Some delays are there, which are because of the delay in getting the export licenses, where the export orders are there. But now, like I mentioned in the beginning, most of the licenses are received, and we are in the process, and we hope that in second quarter and third quarter, we will be completing all this.

Speaker #3: Some delays are there, which are because of the delay in getting the export licenses, where the export orders are there. But now, like I mentioned in the beginning, most of the licenses are received and we are in the process, and we hope that in the second quarter and third quarter we'll be completing all those.

Speaker #4: Okay. So, there are no delays from customer procurement and acceptance?

[Company Representative]: Okay. There are no delays from a customer procurement and acceptance?

Speaker #3: No.

T. V. Chowdary: No.

Speaker #4: Okay. And what will be the revenue guidance for FY27, and does management still expect to achieve meaningful growth despite a weak start to this year?

[Company Representative]: What will be the revenue guidance for FY27, and does management still expect to achieve meaningful growth despite a weak start of this year?

Speaker #3: Yeah. Like you mentioned, we are expecting a target of around ₹600 crores turnover, which is a considerable increase over the previous year and the year before that, if you take it.

T. V. Chowdary: Yeah. Like we mentioned, we are expecting a target of around INR 600 crores turnover, which is a considerable increase in the previous two years, if you take it.

Speaker #4: Okay, understood, sir. Okay, sir. Thank you for the opportunity. I will run that through the queue. Thank you.

[Company Representative]: Okay. Understood, sir. Okay, sir. Thank you for the opportunity. I will join back the queue. Thank you.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Arun Chen with Dolet Capital.

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Varun Jain with Dolat Capital. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Varun Jain with Dolat Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #2: Yeah, so just a couple of follow-ups. On this April 2026, ₹350 crore international order for defense products, have we received the export license for this one?

Varun Jain [Research Associate: Yeah. Sir, just a couple of follow-ups. So on this April 2026, INR 350 crore international order for defense products, have we received the export license for this one?

Varun Jain: Yeah. Sir, just a couple of follow-ups. So on this April 2026, INR 350 crore international order for defense products, have we received the export license for this one?

Speaker #2: It's in process actually. Yeah.

Vijay Kumar: It is in process, actually. Yeah.

Speaker #3: So like why when when

Varun Jain [Research Associate: So when can we receive export license for this and when will the

Varun Jain: So when can we receive export license for this and when will the

Speaker #2: Can we receive an export license for this, and when will the...

Vijay Kumar: Two months, we are expecting. Yeah.

Speaker #3: How much we are expecting?

Speaker #2: Yeah.

Speaker #3: It usually takes at least three to four months for the processing of the export license. And before we submit it for processing, we have to receive the import licenses from the importing country.

T. V. Chowdary: Usually it takes three to four months, at least, for every processing of the export license. Before we submit for processing, we have to receive the import licenses from the importing country. This process, it takes time, at least minimum three to four weeks, months.

Speaker #3: So this process, it takes time — at least a minimum of three to four months.

Speaker #2: Importing license—I didn't understand. Why do you need the importing license for this? Okay.

Varun Jain [Research Associate: Importing license, I didn't understand. Why do you need the importing license for this?

Varun Jain: Importing license, I didn't understand. Why do you need the importing license for this?

Vijay Kumar: Other party has to take.

Speaker #3: The country where we are going to export—they have to issue an import license to the importer there.

T. V. Chowdary: The country where we are going to export, they have to issue an import license to the importer there.

Speaker #2: Okay, got it, got it. So once that comes, then you start the production, so is it safe to assume that in this calendar year there will be no production for this order?

Varun Jain [Research Associate: Okay, got it. So once that comes, then you start production. Is it safe to assume that in this calendar year, there will be no production for this order?

Varun Jain: Okay, got it. So once that comes, then you start production. Is it safe to assume that in this calendar year, there will be no production for this order?

Speaker #3: Actually, I think the last quarter. In the last quarter, yeah, we are expecting some dispatches.

Vijay Kumar: Actually, I think the last quarter. In the last quarter, we are expecting some dispatches.

Speaker #2: Last quarter. Got it. And sir, on this bulk explosives business, what is the guidance for FY27 and FY28 also, if you can give?

Varun Jain [Research Associate: Last quarter. Got it. And sir, on the Spike explosives business, what is the guidance for FY27 and FY28 also, if you can give?

Varun Jain: Last quarter. Got it. And sir, on the Spike explosives business, what is the guidance for FY27 and FY28 also, if you can give?

Speaker #3: It's difficult to predict for FY28 because the prices are very much dependent on raw material import costs. There are multiple manufacturing capacities, but also more than 40 players in this field.

T. V. Chowdary: Difficult to predict that FY28 because the prices are very much dependent on the raw material import prices. The multiple manufacturing capacities are there, also more than 40 players in this field. So difficult to predict on that.

Speaker #3: It's so difficult to predict that.

Varun Jain [Research Associate: For FY27, if you can give, because I think we are already done with 40% of 27. So some guidance of what kind of revenue there will be and what is the margin profile right now?

Varun Jain: For FY27, if you can give, because I think we are already done with 40% of 27. So some guidance of what kind of revenue there will be and what is the margin profile right now?

Speaker #2: For FY27, if you can give—because I think we are already done with 40% of '27—some guidance on what kind of revenue there will be, and what the margin profile is right now?

T. V. Chowdary: Margin profile.

Speaker #3: Margin profile.

Speaker #2: I hello.

Vijay Kumar: Singareni contract.

Varun Jain [Research Associate: Hello.

Varun Jain: Hello.

Speaker #3: Yeah.

Vijay Kumar: Yeah. We have unexecuted contract with Singareni Coal Mines. The balance part of about INR 25 to 30 crores, that will be executed this financial year.

Speaker #2: So we have an executed contract with Singer and Nicole Risk. So the balance part of about ₹25 to ₹30 crore will be executed this year, this financial year.

Speaker #4: So, and other than that, nothing.

Varun Jain [Research Associate: Other than that, nothing, just that much.

Varun Jain: Other than that, nothing, just that much.

Speaker #2: Just that much.

Speaker #3: Other than that, we have the detonating fuse orders and all these things there. Also, we have export orders, so those things will be continuing.

Vijay Kumar: Other than that, we have detonating fuse orders and all these things. There also we have export orders. Those things will be continuing.

Speaker #2: So, close to 80-80 crore, I think we can get right in '27 in this revenue.

Varun Jain [Research Associate: Close to INR 80 crores, I think we can get, right, in 2027, in this revenue?

Varun Jain: Close to INR 80 crores, I think we can get, right, in 2027, in this revenue?

Speaker #3: Yeah, just like last year, I think we'll maintain.

Vijay Kumar: Yeah, just like last year, it will maintain.

Varun Jain [Research Associate: Got it, sir. What is the margin profile we are getting here right now? Because from what I have heard, the Coal India and Singareni margins have been very down.

Varun Jain: Got it, sir. What is the margin profile we are getting here right now? Because from what I have heard, the Coal India and Singareni margins have been very down.

Speaker #2: Got it sir. And so what is the what is the margin profile we are getting here right now because from what I've heard like the Coal India and Singer any margins have been very very down.

Speaker #3: Yeah, margins. In fact, Coal India—we have withdrawn last year also, and then the year before last year also, because of the very low prices.

T. V. Chowdary: Yeah, margin. In fact, Coal India, we have withdrawn last year also, and then actual last year also because of the very low prices. Singareni, yes, we are servicing because it is close by. So a little better than Coal India prices with our net cost and all this. But otherwise, yeah, margins are very thin. Many places it is negative.

Speaker #3: Singareni, yes, we are servicing because it is close by. So, a little better than Coal India prices with our net cost and all those.

Speaker #3: But otherwise, yeah, the margins are very, very thin. In many places, they are negative.

Speaker #2: It's like low single-digit margins then, right?

Varun Jain [Research Associate: It is like low single-digit margins then, right?

Varun Jain: It is like low single-digit margins then, right?

T. V. Chowdary: Yeah. Yes.

Speaker #3: Yeah.

Speaker #2: Yes, got it, sir. And just one last question, sir. What is the scenario in the international market, sir—in terms of RDX and HMX supply, demand, and pricing?

Varun Jain [Research Associate: Got it, sir. Last one, sir. In the international market, sir, what is the scenario with RDX and HMX supply, demand, and pricing? If you can give us some color there.

Varun Jain: Got it, sir. Last one, sir. In the international market, sir, what is the scenario with RDX and HMX supply, demand, and pricing? If you can give us some color there.

Speaker #2: If you can give us some color there.

Speaker #3: Demand is good, but getting licenses is difficult.

Vijay Kumar: Demand is good, but getting licenses is difficult.

Speaker #2: And pricing of RDX HMX.

Varun Jain [Research Associate: Pricing of RDX, HMX?

Varun Jain: Pricing of RDX, HMX?

Vijay Kumar: Exporting to different countries. Depending on country.

Speaker #3: That's good in exporting to different countries, so depending on the country, the present scenario and all those factors push the demand up. So for the present, yes, prices are good.

T. V. Chowdary: Present, because war scenario and all those have pushed the demand up. For the present, yes, prices are good. After 2 years or 3 years, what happens, we will have to see that.

Speaker #3: Maybe after two years or three years, what happens, we'll have to see that.

Speaker #2: So, can you quantify the prices, and can you give us some bands? That would be helpful for RDX, HMX, or any other major grade of explosives.

Varun Jain [Research Associate: Sir, can you quantify the prices and give us some band? That would be helpful. For RDX, HMX, any other major grade of explosives.

Varun Jain: Sir, can you quantify the prices and give us some band? That would be helpful. For RDX, HMX, any other major grade of explosives.

T. V. Chowdary: We are competing in this area also, so we do not want to say anything on that.

Speaker #3: We are competing in this area also, so we don't want to say anything on that.

Speaker #2: No just the just the industry price band what what price band it operates in. Not not the your selling price.

Varun Jain [Research Associate: No, just the industry price band, what price band it operates in, not your selling price.

Varun Jain: No, just the industry price band, what price band it operates in, not your selling price.

Speaker #3: You can get it easily from the internet and other places rather than—

T. V. Chowdary: You can get easily from the internet and other places other than.

Speaker #2: Okay. Okay. No, no issue, sir. That's all from me. Thank you, and all the best.

Varun Jain [Research Associate: Okay. No issues, sir. That is all from me. Thank you, and all the best.

Varun Jain: Okay. No issues, sir. That is all from me. Thank you, and all the best.

Speaker #3: Yeah.

Speaker #1: Thank you. The next question comes from Deepak, an individual investor. Please go ahead.

T. V. Chowdary: Yes.

Operator 2: Thank you. The next question comes from the line of Deepak, an individual investor. Please go ahead.

Operator: Thank you. The next question comes from the line of Deepak, an individual investor. Please go ahead.

Speaker #4: Hello. Thank you for the opportunity again, sir. My question is related to the Linda margin. We have seen a drastic decline in the Linda margin from 15% to 6% in Q1 FY27.

[Company Representative]: Hello. Thank you for the opportunity, Arun sir. My question is related to the EBITDA margin that we have seen a drastically decline in the EBITDA margin from 15% to 6% during Q1 FY27. Can you share what is the reason behind?

Speaker #4: So, like, can you share the—like, what's the reason behind it?

Vijay Kumar: As our MD sir explained, there is a bouquet of products. Depending on product dispatch, it slightly varies. But overall, our guidance is about 15% to 20% is our yearly target.

Speaker #2: As RMD sir explained, there is a bouquet of products. So, depending on the product dispatch, it slightly varies, but overall, our guidance is about 15 to 20% as our yearly target.

Speaker #4: So, in this, how much margin has been eroded due to raw material cost and under-absorption of fixed cost?

[Company Representative]: In this, how much margin has been erosion due to raw material cost and under absorption of fixed cost?

Speaker #3: The difference you are seeing is that, but I think in the coming quarters we'll be making it up.

Vijay Kumar: The difference, what you are seeing is there, but I think in the coming quarters, we will be making it up.

Speaker #4: Okay. So in this, has the raw material price started to normalize?

[Company Representative]: Okay. So in this, that raw material price has been started to normalize?

Speaker #3: Yeah, this is not normalizing, but already we have some contracts there, so we have to execute them. Once we complete the contracts, we'll be increasing the price also.

Vijay Kumar: Yeah. It is not normalizing, but already some contracts are there, so we have to execute them. Once we complete the contracts, we will be increasing the price also.

Speaker #4: Okay. So if the raw material prices get normalized, what bidder margin range can we expect? Is it the same, like 15 to 20%?

[Company Representative]: Okay. So is there raw material prices get normalized, what EBITDA margin range we can expect? Is it same like 15% to 20%?

Speaker #3: Right. For this financial year.

Vijay Kumar: Right. For this financial year.

Speaker #4: Okay. And sir, one last question on the order book. We have nearly 13 to 14 million in our order book, equivalent to nearly 3.5 to 3.6 times of FY26 revenue.

[Company Representative]: Okay. And sir, one last question on order book that we have nearly 13 to 14 million of our order book, equivalent to nearly 3.5, 3.6 of FY26 revenue. So what percentage of this order book is execute in next 12 to 18 months?

Speaker #4: So, what percentage of this order book is expected to be executed in the next 12 to 18 months?

Speaker #3: As per our turnover, the run rate we are expecting is about ₹500 to ₹600 crore—rather, ₹600 crore is what we are targeting. So, yeah.

Vijay Kumar: As per our turnover, the run rate we are expecting is about INR 500 to 600 crore. Rather INR 600, we are targeting.

[Company Representative]: Okay.

Vijay Kumar: Yeah.

Speaker #4: 500 to 600-odd crore you are targeting in the next 12 to 18 months.

[Company Representative]: INR 500 to 600 crore you are targeting in next 12 to 18 months.

Speaker #3: Yeah.

Vijay Kumar: Yeah.

Speaker #4: Okay, okay. Thank you, sir. Thank you so much for the opportunity, and all the best for next quarter.

[Company Representative]: Okay. Thank you, sir. Thank you so much for the opportunity, and all the best for next quarter.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. Thank you. As there are no further questions from the participants...

Operator 2: Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. T.V. Chowdary for closing comments.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. T.V. Chowdary for closing comments.

Speaker #1: I now hand the conference over to Mr. T.V. Chaudhary for closing comments.

Speaker #3: Yeah. Thank you, Mr. Akilesh. And thank you, everybody—all the stakeholders—for showing interest in the company and wishing us good success in the future, and yours as well.

T. V. Chowdary: Yeah. Thank you, Mr. Akhilesh. Thank you everybody, all the stakeholders, for showing interest in the company and wishing us a good success in the future endeavors. Thank you very much.

Speaker #3: Thank you very much.

Speaker #2: Thank you.

Moderator: Thank you.

Akhilesh Gandhi: Thank you.

Speaker #1: Thank you. On behalf of Premier Explosives Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

Operator 2: Thank you. On behalf of Premier Explosives Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of Premier Explosives Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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