Premier Explosives Limited Settles 2,22,21,735 Equity Shares to AKS Family Trust Under SEBI Exemption

Premier Explosives Limited has disclosed a substantial share settlement involving the transfer of 2,22,21,735 equity shares to AKS Family Trust under SEBI regulations. The transaction represents a significant internal restructuring within the promoter group, executed through a settlement mechanism rather than a traditional market transaction. Share Settlement Details The settlement involved two separate transfers from existing promoters to AKS Family Trust: Transferor: Shares Settled Percentage Mr. Amarnath Gupta 1,63,84,400 30.48% Ms. Kailash Gupta 58,37,335 10.86% Total Settlement 2,22,21,735 41.33% The transaction was completed on February 18, 2026, pursuant to a SEBI exemption order under Regulation 11(5) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Shareholding Pattern Changes The settlement resulted in a complete transfer of shareholding from the individual promoters to the family trust: Shareholder Category: Pre-Settlement Shares Post-Settlement Shares Change Amarnath Gupta 1,63,84,400 (30.48%) 0 (0.00%) -30.48% Kailash Gupta 58,37,335 (10.86%) 0 (0.00%) -10.86% AKS Family Trust 0 (0.00%) 2,22,21,735 (41.33%) +41.33% Public Shareholding 3,15,39,460 (58.67%) 3,15,39,460 (58.67%) No change Company Capital Structure Premier Explosives Limited maintains its equity share capital structure unchanged following the settlement: Parameter: Details Total Equity Capital INR 10,75,22,390 Number of Equity Shares 5,37,61,195 Face Value per Share INR 2.00 Stock Exchanges BSE Limited, NSE India Limited Regulatory Compliance The company emphasized that there has been no change in the total shareholding of the promoter/promoter group following the settlement. The transaction was structured as an internal reorganization within the promoter group, maintaining the overall promoter shareholding at 41.33% while consolidating individual holdings under the AKS Family Trust structure. The disclosure was made to both BSE Limited (Scrip Code: 526247) and National Stock Exchange of India Limited (Symbol: PREMEXPLN) in compliance with regulatory requirements for substantial acquisition disclosures. Premier Explosives Limited faced significant headwinds in Q3FY26, reporting a substantial decline in financial performance compared to the corresponding period last year. The company's results reflect the challenging nature of defence sector execution timing and the impact of high base effects from previous year dispatches. Financial Performance Overview The company's Q3FY26 performance showed marked deterioration across key metrics, primarily attributed to execution timing differences and high base effects from the previous year. Metric Q3FY26 Q3FY25 Change (YoY) Revenue Rs 814 Mn Rs 1,659 Mn -51% EBITDA Rs 116 Mn Rs 155 Mn -25% EBITDA Margin 14.3% 9.3% +500 bps PAT Rs 60 Mn Rs 92 Mn -34% PAT Margin 7.4% 5.5% +190 bps Cash PAT Rs 91 Mn Rs 121 Mn -25% Despite the revenue decline, the company demonstrated improved operational efficiency with EBITDA margin expanding by 500 basis points to 14.3% and PAT margin increasing by 190 basis points to 7.4%. Segment-wise Revenue Analysis The revenue breakdown reveals the impact across both business segments, with Defence & Space services bearing the brunt of the decline. Segment Q3FY26 Q3FY25 Change (YoY) 9MFY26 9MFY25 Change (YoY) Commercial Explosives Rs 198 Mn Rs 208 Mn -5% Rs 514 Mn Rs 533 Mn -4% Defence & Space Services Rs 616 Mn Rs 1,451 Mn -58% Rs 2,477 Mn Rs 2,901 Mn -15% Total Revenue Rs 814 Mn Rs 1,659 Mn -51% Rs 2,991 Mn Rs 3,434 Mn -13% The Defence & Space segment, which contributed 83% of 9MFY26 revenue, experienced a significant 58% YoY decline in Q3FY26. The Commercial Explosives segment showed resilience with only a 5% decline. Nine-Month Performance Highlights The 9MFY26 results present a more balanced picture, with the company demonstrating strong profitability improvements despite revenue challenges. Parameter 9MFY26 9MFY25 Change (YoY) Revenue Rs 2,991 Mn Rs 3,434 Mn -13% EBITDA Rs 391 Mn Rs 484 Mn -19% EBITDA Margin 13.1% 14.1% -100 bps PAT Rs 392 Mn Rs 249 Mn +58% PAT Margin 13.1% 7.2% +590 bps Cash PAT Rs 481 Mn Rs 334 Mn +44% The nine-month performance showcased remarkable profit growth with PAT surging 58% YoY to Rs 392 Mn and PAT margin expanding by 590 basis points to 13.1%. Strong Order Book Position Despite quarterly challenges, Premier Explosives maintains a robust order book position that provides strong revenue visibility. Parameter Details Order Book Value Rs 12,946 Mn Revenue Multiple ~3.1x of FY25 Revenue Defence Segment Share 92% Explosives Segment Share 4% Services Segment Share 4% The order book of Rs 12,946 Mn represents substantial growth from Rs 7,500 Mn in March 2025, with defence segment orders dominating at 92% of the total portfolio. Business Outlook and Strategic Focus The company continues to position itself as a leading manufacturer of high energy materials for defence, aerospace, and mining sectors. Premier Explosives operates six manufacturing facilities across Telangana, Madhya Pradesh, and Maharashtra, supported by a team of over 850 experienced professionals including approximately 100 engineers and scientists. The company's strategic focus includes expanding missile integration participation under DRDO's DCPP schemes, enhancing production capacity for high explosive raw materials, and increasing export contributions in industrial and defence explosives. With India's defence budget reaching Rs 6,81,000 crore for FY26 and the government's emphasis on "Make in India" initiatives, Premier Explosives is well-positioned to capitalize on the growing domestic defence manufacturing ecosystem. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. 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