Premier Explosives Limited (PREMEXPLN) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4 and FY26 conference call hosted by Premier Explosives Ltd. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star than zero on your touch-tone phone. Please note that this conference is been recorded. I now hand the conference over to Mr. Achilles Gandhi from Stellar I.R. Thank you and over to you, Mr. Gandhi. Thank you, Abhirat.

Good morning, everyone, and thank you for joining on Saturday morning. I, Achilles Gandhi, on behalf of Stellar Investor Relations, welcome you all to the Premier Explosives Q4 and FY26 earnings conference call. We shall be sharing the key operating and the financial highlights for the fourth quarter and the full year ended on March 31st, 2026. Today, we have with us the senior management team of Premier Explosive, mainly Mr. T.V. Chaudhary, sir. He's a managing director. Along with that, we also have Mr. Vijayaji Kumar. He's a chief financial officer. But 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. These statements made in today's call are not a guarantee of future performance and also involve unforeseen risk and uncertainties. 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 exchanges. With that, I now invite Mr. T.V. Chaudhary, sir, to share his initial remarks on the company's performance for the fourth quarter and the full year ended on March 31st, 2026. Thank you, and over to you, sir.

Thank you, Mr. Gandhi, and good morning to everyone. I welcome you to the earnings conference call of Premier Explosives for the fourth quarter and full year ended March 31st, 2026. Thank you for joining us. I trust you have reviewed our Q4 and FY26 results along with the investor presentation available on the stock exchanges. During Q4 and FY26, we delivered a healthy revenue performance driven primarily by strong momentum in our defense and space segment. The segment contributed 76% of the overall revenue. At Rs. 67.7 crores and registered an impressive growth of 43% year on year. For FY26, revenue performance was impacted due to the execution of a larger volume of high-value shafts and flares, or that's in financial year 25, with execution timing affecting the overall performance during the year. Additionally, operating profitability for both the quarter and the full year was impacted by elevated raw material prices amid prevailing global tensions, a challenge that was experienced across the industry. Highest ever order book stands at Rs. 1,569 crores, representing 4.04 times of FY26 revenue and providing strong medium-term visibility. During the quarter, consistent execution strengthened our positioning and enabled us to secure larger and strategically significant contracts from the Ministry of Defense, domestic defense players, and international customers. In April, we secured a major export ardor worth Rs.350.23 crores from international clients for the supply of defense products. Additionally, we continue to witness healthy ardor momentum across key product categories, including shafts and flares, rocket motors, and other defense systems, further strengthening our ardor pipeline. We are currently in discussions with the Andhra Pradesh government further. Acquisition of a 400-acre land parcel to establish a dedicated defense manufacturing facility. In parallel, the company is also actively developing new products which are expected to generate a healthy order in flow in the coming quarters. Vrimir continues to occupy a unique strategic position as the only Indian company qualified to manufacture countermeasures and as a key exporter of fully assembled rocket motors. Our diversified portfolio across warheads, mines, and ammunition further reinforces our contribution towards India's defense indigenerization objectives. With sustained policy support for domestic defense manufacturing and import substitution, we believe the long-term structural growth outlook for the sector remains highly promising. Going forward, our focus remains firmly on driving execution excellence, Strengthening technological capabilities. Scaling capacities in a calibrated manner and further expanding our global presence. We remain confident in our growth trajectory and committed to delivering sustainable value for all stakeholders. Now I request Mr. Vijay Kumar, our CFO, to share the financial performance.

Thank you, sir. Good morning, everyone. The result presentation for the quarter ended March 31st, 2026 has been uploaded on the stock exchanges. I believe you may have gone through the same. The revenue from operations for Q4FI26 grew by 20% year on year. To 89.2 crores. Our EBIT for Q4FI26 grew by 35% year on year to 9.6 crores. The EBIT margin for the quarter stands at 10.8%. Our net profit increased by 78% year on year to 6.6 crores. The pad margin for the quarter stands at 7.4%. The revenue from operations for FY26 grew by 7% to 388.3 crores. Our EBIT for FY26 grew by 42% year-on-year to 69.3 crores. The EBIT margin for FY26 stands at 17.8%. Our net profit increased by 67% year-on-year to 45.8 crores. The FAT margin for the quarter stands at 11.8%. Now, coming to the other book. The company's current order book stands at 1569 crores, out of which different segment order is majority of 1491 crores, which is equal to 95% of the total order book. Explosive segment stands at 31 crores, which is equal to 2% of the total order book, and service segment, which is operational and maintenance service segment, stands at 41 crores, which is equal to 3% of the total order book. So this represents our highest level order book and 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 very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking your questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dipen Vakil from Phillip Capital. Please go ahead.

Thank you for the opportunity, sir, and congratulations on a great quarter. So, my first question is, you mentioned that you had some, like FY25 was a year boosted because of Sharps and Ceres, and FY26 was largely, the performance was muted because of that. So, for FY27, how do you look at the outlook to be as to what kind of growth and margins are we targeting, considering that now those emergency procurement orders would be limited?

In FY27, we are expecting a growth which is commensurate to previous years, because the new areas, that is landmines and payloads for drones and lightning munitions and medium caliber ammunition, which are going slow because of the non-availability of raw material. Now, alternate raw material is found, and then the designers have accepted that. So, we are hoping that the current year, these are areas which are going to contribute to our turnover and profitability. So, any quantum to that? These orders are already there, included in the order book, what is mentioned in the book.

I meant to ask on the revenue growth for FY27.

Yeah, we are targeting 600 to 700 crores. Got it, sir. And margin? Margins, it will be similar, between 15 to 20 percent.

Got it, sir. So, you also mentioned about the raw material unavailability impacting explosive segment. So, right now, how is the execution faced, especially with respect to our domestic PSQs, in terms of the deliveries and the kind of availability from them? So, is the execution on track or there's a slowdown on that front as well?

No, it is. See, we had a slowdown on the shafts and plates. Earlier, but now we are happy to inform you that we have executed the order last year's order, completed, and we have started producing again as the new order. In the meantime, I would like to share with you that the plant, flair production plant, where there was an accident on and a half year back, that plant is recommissioned and it is producing. So our dependence on the imports also has reduced, and then we are hoping that this all is going to contribute well for the next. We are ready to take the order, but the status and all those, we are not very sure, very clear when the order will come and when that. So our estimates are not, the QRSAM is not included in this.

Got it, sir. Thank you so much for answering my question, sir, and all the best for F527. I'll fall back on the queue. Thank you.

Thank you. The next question is from the line of Varun Jain from Dollard Capital. Please go ahead.

Yeah, hi. Good morning, sir. So, I have a couple of questions. So, the first question is, sir, on the guidance front, I think in Feb 26 call, you said that, you know, we'll try to get to 500 CR, but we've come in at much lesser, like close to 390. So, sir, has anything changed from Feb 2 till now, like Q4 was not as well as it was expected?

Yeah, like I mentioned earlier, The multiple factors have affected this. One of them, I said, is the availability of raw material for execution of these mines and light ring munitions and also plays, where we were dependent on some of the inputs, raw materials, on MIL munitions in Jail Limited. But they have informed their inability to meet the requirements. So we had to again take up the matter with DR Devo, who are the technology providers. With an alternate raw material against that, and it took time for acceptance. In fact, the trials are still going on with alternate raw material. We are hoping that in a month or two, we will be completing that, and then we will be in production with the permission from DRDO.

Sure, sir. And, sir, on the CAPEX front, I think we have done close to 28 CR of CAPEX in FY26. And the total capex for 26 and 27 was 45 crores was required for Kattapalli expansion and 15 CR for PDK. That is my understanding. So, now you are saying PDK, 15 CR is done. So, that would imply that close to 25 CR for Kattapalli is still pending. Is that understanding correct? And when is that expected to complete?

So, the PDK, what figure you have mentioned, That is not including the execution. We have already completed the flare production plant, which is productionized in the last financial year. That is FY25 itself. The balance amount, what is there, the other new mixers and new storage facilities, magazines and all those construction which is going on. And for Katapalli? Katapalli also, Katapalli, the plant is, you know that we have taken up expansion of RDX and HMX plant. The expansion project is going on. It is not yet completed. Similarly, the other areas, this large planetary mixer and the supporting balancing equipment and supporting equipment and magazines is still going on work. We are hoping that in the... By the end of the first quarter itself, some of them will be capitalized.

So, sir, this Kachapalli entire expansion is expected to end by Q2, like Q2 FI 27, it will end?

It may go up to Q3 because, see, we are in the business of explosives where the qualification of the plant and qualification of the product produced from the plant is important. That will take another one or two months once we complete the execution, erection and commissioning of the plant. Okay, okay.

And sir, I saw that there was a 18.9 CR order which was received in FEB and it got cancelled in April because there was a export license which was not given. So I saw that recently company won a 350 CR order of different products to an international client. So does this risk of, you know, export license not being given exist for, you know, such orders like this big order and other orders?

Yeah, this is, under Arms Act and all this, this is export license is very important. And in this business, yes, there is a possibility of export license getting rejected also. Because this depends on the government policy. Based on the policy, whether permission is given or not given, will be decided by government. Depending on the country also. Yeah, and the country where you are exporting.

Okay, sir. Okay. And, sir, just last two questions from my end. So, sir, we had one, this 430 CR order in October of 2025. So, out of this 430 CR order, how much has been completed in FY26 and how much will be completed in FY27?

It has just started the execution because we have completed the order prior to that, which is an emergency procurement order. That part we have completed, and then started the next hour working on that.

So, sir, out of this 430 CR, how much revenue do we expect to see in FY27?

It will be, I think, two-thirds will be done before the end of financial year 27. One-third may still flow to next year. Okay, okay.

And since the July 23 shafts and clairs order, has it completely been executed? It is fully executed as of now. And if yes, so have we received the full LD reversal? We received, I think, 23 CR or something back, but there is some amount left in LD reversal on that order, right?

Yeah. We are still trying to get it with a MOD.

But the order has been completed, completely executed for both shafts and players?

Shaft is completed, players' little portion is left.

Ah, still it is left. Okay, and by when will that be completed?

Just financially. For Scott Ritzel, we are expecting to complete that.

Okay, okay, and then only the LDE reversal process. Okay, sir. Okay, okay, sir. That's all from me. Thank you and all the best.

Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of SC Gupta, an individual investor. Please go ahead.

Good morning. I have a couple questions. One is with respect to the order book, what is the breakup between export and domestic? Okay, and in the case of exports, out of this 54%, for which, how much quantity we have export license available?

All these things are in process now. You can take it like this, from the beginning of receiving the order, anything between three months to six months.

Now, many of these orders are pending for more than one year. So, I just would like to know that on these orders, because out of 1,600, around 800 is export order, and recently we got only 300 something and maybe another order of 100 or so. So, balanced 400 are more than one year old. So, we have not got export licenses for that.

No, those are all, we already have the export licenses. Most of them which are in the process of completion of execution, they are the development orders received. Yeah, and in those cases, And we go by that process. And as per the milestone completion, we keep on raising our invoice in a state.

So in simple terms, if I have understood correctly, out of the about 800 crore of export orders, we are already in development space of 400 crore, about 400 crore, not to be precise. And another 400 crore, we are awaiting the export licenses.

Yes.

My second question is with respect to domestic orders. These domestic orders are also almost 700 to 800 crores. What is the pendency timeline? Like, how many of these are pending for more than two years or one year?

And see the others from BDL and DRDO, as I mentioned many times earlier, We are dependent on the free issue materials given by these agencies.

Okay.

So, these orders, unless we get the free issue FIMs, we cannot execute them on our own. So, rightly present delivery status is we are able to do around different type of motors, around 40 numbers for these domestic customers. So...

So, we have many orders pending because we do not have a free-issue material available with us.

Yeah, yeah. As and when the free-issue material comes, then we immediately complete the product and deliver back. Right now, like I said, around 50 numbers per month are being produced between different types of products. That is LR SAM, MR SAM, Astra, all these.

Okay. And what is the average cost of this revenue from this one unit?

Thank you.

We can share with you some information later on.

Okay, no issues. One more thing. What is the amount of LD which is pending which can be reversed? You just now indicated that your final flares will be supplied in the month of this quarter itself. Then what is the amount of LD which you will be putting a claim for reversal?

We are trying with the government. We have to see it is around 30 crore spending.

So 30 crore is the amount which we will claim and depending upon the final approval. We are trying.

That is the claim. We always claim for the largest amount.

Yeah, I agree with you. I agree with you. You will claim for the best and whatever you will get it, that is what we get. One more thing. What is the amount of orders which could not be dispatched at the end of March?

That means you are saying that we have missed the delivery period?

Yeah. Either we have missed the delivery period, or otherwise the inspection could not be done, so these orders could not be dispatched.

Yeah, these are all the running orders, so they have no 31st March deadline other than our own balance accounting systems.

Okay, because in last call you indicated that some of our orders depend upon the inspection by the defense people, and these are dispatched only after the defense inspection.

See, very recently we completed one PDA, PDA means pre-dispatch inspection.

Yeah, yeah, this is what I am saying, that anything was pending on 31st March for pre-dispatch inspection, it means material was ready.

These were ready, and then three different lines of around 30 crores worth were offered for inspection, and in the month of April.

These have been dispatched?

Yeah, it was completed, and we have dispatched.

We have dispatched.

In June again, we are offering further quantity for inspection. We hope that the first quarter will be completing those also.

Okay. And one more thing, are we considering any kind of strategic kind of alignment with any other company to expand our business? Like one we have with Naib, Global Immunition.

That is, yes, we have one joint venture company, but we have strategic memorandums of understanding signed with multiple companies. which are going to help us in our, like because we are one of the areas is that presently which is very much in the vogue is that drones and loitering munitions.

Yeah.

So we are, we have understanding and MOU signed with multiple countries, companies for provision of, yeah, payloads to these companies. They are producers of drones, but the payload has to be supplied by us.

Okay, and my final question is with respect to the current year target of revenue of about 600 to 700 crore, how much we expect will be the export contribution out of this?

Around 300. 200 will be in the current year, that is FI27 we are expecting to export, but these are all the, presently majority of these are development orders we are exhibiting.

Okay.

Once we complete, then they get converted into production orders, which are a little larger than these figures.

Okay, so we are normally, this year, if I have understood correctly, it is around 200 crore of export and 500 crore of domestic revenue.

Yes.

So that is what we are, will it be evenly distributed across the quarters, or there will be variation across the quarters?

There will be variation, it's always there. One of the reasons, like I told you, inspections and dispatches. And then we are dependent on some imports for some of the raw materials. Where they are getting late, that also is affecting the deliveries.

So in normal courses, that is our target, as only.

Yeah, exactly.

Okay, thank you. If I have any other, I will come back again in the queue.

Thank you. The next question is from the line of Apar Bensil from Alpha Ventures. Please go ahead.

Good morning, am I audible? So, firstly, many congratulations to achieve this kind of milestone. Thank you. I have only one question. Why is there an execution risk in this business? Because we are delaying the orders and we are not able to complete the orders at a specific time. So, how do you assess this execution risk?

You remember we had accidents in the last year in two of our plants. One of them is the flares manufacturing facility, and you know that flares is one of the important products we produce for engineering air force, and we are the only source, and then we are holding multiple others on that. Because of these things, the deliveries got affected. We had to import some of the components which we produce ourselves. And the imports got affected because of geopolitical conditions, ship movement, and now, like I mentioned, now we have completed the reconstruction of the plant for flares and all those, we are producing ourselves. We are not dependent on the imports now, and we hope that we will be executing this much faster than earlier.

Okay. So, the target that you have just mentioned for FY27, it's going to be somehow achievable or it will face this execution risk again?

We think it is achievable only.

Okay. Thank you so much, sir. I wish you the best. Thank you.

Thank you. The next question is from the line of Varun Jayin from Dholat Capital. Please go ahead.

Uh, yeah, uh, yeah, sir. So, just wanted to understand, for FY27, what will be the capex total?

Last time also, we gave the number. I think the same thing remains.

Okay, so it is like 32 CR, right? 60 minus 28, which was done. That is the amount?

Yeah.

And, sir, when can we get clarity on this export license for this 350 CR order? Why, when is that license expected to come?

Maybe the running process always is following up with the export license. Maybe I think in three months' time, we should be able to get this.

Okay, and so the XRO revenue which we get, how much was that in FY26, and what is the contract life remaining for that revenue?

Please repeat.

Good night. I'll tell you. That is around 18 crores per annum. The contract life is about another two and a half years.

Another two and a half years. So it will run up to H2FY29, I think, right?

Right, right.

And this 18 CR run rate will remain constant or it will go down?

It's constant. More or less.

Constant.

Okay, sir.

And, sir, just last question. Sir, there's 600 to 700 CR revenue guidance. Sir, seeing as to this year was, like, on the revenue terms, we missed the guidance a lot. Like, so, is this, like, too aggressive? It seems a little too aggressive.

No, if you look at our other book, it will not look aggressive. We are talking about another book of 1,500 plus calls.

It says the execution has a lot of challenges, right? So that way.

Yeah, we'll try. That's why you said that we'll try our best to achieve that. And some of the problems which we faced in the last year because of the wars, multiple wars and conflicts. Those are now, we are thinking that we have overcome that. Like I told you, we found alternate raw materials and sources and all those. We are able to do better.

And the margins will revert to like 20% or 17, 15% levels in FY27?

Yeah. 15 to 20% is over.

Okay.

Okay, sir.

Okay. That's all from me. Thank you and all the best.

Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of Deepak Karwa and an individual investor. Please go ahead.

Hello. Yeah. Good morning, sir. Congratulations on recent talker. So, sir, I have two questions. Like, first one is regarding, is there any update on ongoing discussion and negotiation with Andhra Pradesh government for manufacturing unit of defense? Likely, like, what is the milestone we have achieved so far, and what will be the next step and the expected timeline from here?

The land parcel is identified and selected by us from the... Six different lot parcels they showed, we have selected and then identified that. Now the pricing is the issue. We are asking for a discounted price. They have asked for a different amount. We already approached the Anakadesh government, the senior officials and its secretary level. The discussion is going on to revise the price of the land.

Okay. So, like, sir, what will be the expected timeline from here?

This is, the moment this land parcel is, price is finalized and we get a demand note, then the activity will start acquiring the land and then we, because we have a lot of orders in hand which we can execute through that facility. So, we are, we expect that within one to one and a half year we can commission it.

Okay, sir. Understood. And, sir, in, like, recent quarter, our other income has been, like, increased from 13 crore Q4 FI 26 and 42 crores for FI 26. Like, could you elaborate the key component contributing to this increase? Are these, like, recurring or largely one-off in nature?

It is not recurring. It is one-off nature. So, in previous quarters also we had it, but this is only one-off. This is the last one.

Okay. So, like, what is the reason for the increase in this quarter?

Pardon? Please go ahead.

Like, what is the reason behind, like, increase in this quarter?

No, no, previous quarter also we got, yeah.

Increase in? Other income. Other income. Like the payments which got deferred, and deliveries got deferred, now they are cleared and then we received.

The discounts last time we negotiated with them, so they gave it in two parts.

Okay. Like, what are the key components, if you can tell us?

In previous quarters also we gave the details. Same thing. We did the material requirements, so we took discount from the supplier.

Sorry sir, you are not bit audible.

No, the delays, which are because of non-delivery of the items, those were taken up with our vendors, and then we got a discount against it, passed off the expenses due to these things. You got a discount on the price.

Okay. Understood, sir. Okay. Thank you so much and all the best for next start-up. Thank you.

Thank you. The next question is from the line of Dipen Vakil from Phillip Capital. Please go ahead.

Thank you for the follow-up opportunity, sir. So, first, I want to understand, sir, your current order book. So, when we look at your current order book, what would be like a blended execution timeline that you can foresee for completely executing the current order book? And what is your order pipeline foresee when we look at in FY27 or maybe FY28 that you're executing?

Now we have about 1,569 tours, so this will take 2-3 years to complete it. And parallelly other orders are also there which we are negotiating, which can make place. Like earlier also we have mentioned, the order book will continue to remain at that level, because around 1,000 plus kind of thing. If you know that the new facilities are being added at Katepalli and other places, So, these are going to bring and contribute further for that.

Got it, Doc. So, okay. So, second question is, so now when we look at explosive as an industry, there's a lot of consolidation which has happened in some companies. At the same time, some more companies have come in, even in Andhra Pradesh side of it. So, how are you looking at the space evolving and what kind of changes are you expecting and what will be your differentiating impact? for pre-made explosive so that the demand and scenario for pre-made explosive remains unimpacted.

See, we, others are trying to enter. It always takes at least a period of five years minimum for a stop dishing and explosive manufacturing unit or storage and all those. So that advantage And another thing is, like we mentioned earlier, Apart from we are well entrenched in the rocket motor business and we are exporting. We have multiple orders on this area and we are expanding further. In addition to that, our focus areas are landmines and payloads for drones and lightening munitions and medium caliber ammunition where the demand has grown because of the recent conflicts. So we hope that we are much ahead of others in these areas. Got it, sir.

Sir, and what is your outlook on shafts and threads? Because largely, Indian armed forces were importing it. You were among the first ones to manufacture it domestically. So, how is the opportunity shaping up for shafts and threads, considering that now you also backward integrated a lot of those components? Yeah, it's good. So, are we expecting any new orders from shafts and threads?

Yeah, yeah. Like I mentioned, yeah, some of the orders are at negotiation level. Some are already there, please be participated and waiting for that. So, it's all going on.

You got it, sir. Thank you so much for answering my question, sir. Thank you.

Thank you. The next question is from the line of Sahil Karya from White Pine Investment Management, Private Limited. Please, go ahead.

Yeah, thank you for the opportunity. Sir, I just wanted to know your views on the Odisha Capex plan, like how, where are we currently, and what are the further timelines?

Actually, like last time I mentioned, the land which was seen and all those, when we went and personally looked at it and all those, we felt it will not be meeting our requirements. The same thing we have informed to the Orissa government, and the government is proposing some new areas. In fact, to share with you, today I have a video conference with the Orissa government officials for discussing about the other land parcels. So, we are still hopeful that we will find some land for our future expansions.

Sir, any kind of timeline by when we will be able to, like, you know, start the operations at Odisha? Because I guess the products that we would be manufacturing are one of the key drivers for our future events. So, any timeline for that?

Yeah, like we have mentioned earlier, we plan to do it in three phases. Three phases, first phase, we have already started working in Andhra because that land is partially, I mean, closer to us rather than the Orissa. After that, the second and third phases, then we are thinking of Orissa and then which may take around four to five years.

Okay, okay. Thank you, sir. And the next question is regarding the ITRO service contract. So, we see that now, like, even ITRO is planning a number of launches, like, increasing the number of launches per year, and the profilent requirements for these launches would increase. So, like, do we have any plans of renewing our contract with ITRO?

No, the present contract has another three years completion time. Two and a half years. Further thing will RFP or anything will come after that or during the last year of execution of that. Yes, we will definitely participate.

Okay, and also, like, we are also, like, we also do the service contracting for the Jaxalpur plant. That is, I believe, it is for the Agni missiles province. So could you just give us some...

We have not got the last current running order. We lost that in our meeting.

Okay, okay.

So, Jagdrasur is no more being serviced by him.

Okay, now because you have mentioned with the PPT as well that it is under our O&M services, so like what was the reason of using the contract?

We have done it and our costs have gone up, so we can't face down the costs only, we can submit our price code. And the new contractors, they quoted low and then they got the order.

Okay, so are we still supplying these pyrogen emitters or any product that we were supplying earlier for the ugly missiles? So are we still...?

Yes, yes, we still supply all those. Whatever made in our plant, we will continue to supply. In fact, as on date, we are still the single source.

Okay, okay. And for this last question on these other missile programs, currently we are just supplying the solid propellants like for MR-10, LR-10 and Astra. So, like, do we have, like, plans to manufacture the entire rocket motor and not only the propellants?

No, these areas, entire rocket motor, we are not doing. As on it, we have no plan also of taking off. But up to hardware, that is the rocket motor casing and the components and all those, yeah, we are doing for other new systems and for exports. Opportunity, if we get that opportunity, we will also participate in these motors also. But electronics, guidance system, and then seekers and all those, we are not into that.

No sir, my question was regarding the rocket motors only. Like currently, we are only supplying the proponent, like the chemical or the chemical material part, right? We are not supplying the entire rocket motor for this current missile. So any plans to...

We are not doing, but given the opportunity, we will take up that, because for export purpose, we are doing the full rocket motor.

Okay. Okay, and just to follow up on that, like, as we see the quantum of the export orders at the reserve, it is between 30 quarts to, like, 150 or 300 quarts. So, like, we are currently only doing a developmental project only. So, do we have any expectations or timelines by when can we receive production orders for the already developed products exported?

See, we have both in our kitty, that is... Development orders, and we are also executing the production orders. Like warheads, as on date, we are completely producing warheads for their requirement, and we are also producing other rocket motors, which are there and all those. So both kinds are there, production orders as well as development orders.

Okay. Answer this last one question. Like, you have guided revenue, like, given a revenue guidance of 600 to 700 growth in F527. So, what could be the, like, major drivers for this revenue growth? So, like, we are speaking of about some 50% growth in the revenues from F526-based revenue. So, like, what are the products that could drive these revenues?

Execution of the... Products which got delayed in the last financial year because of the geopolitical conditions. And also, like I mentioned, these are areas we could not meet the requirement, that is landmines and the drone and loitering munitions payloads and ammunition because of the availability of raw materials. Now there is a better visibility of raw materials and then the designer also is accepting the alternate raw materials suggested by us. So we are expecting that these areas are going to contribute.

Okay, and this would be from the existing plants only, right? Like the Odisha Capex has now been shifted for four to five years, and I believe Andhra...

We may go to Andhra for some of them.

Okay, and the new land parcel that we are looking at Andhra, I think the timeline for that would be four to five years, right? The revenue contributing from this land.

Yeah, we can produce these from our existing facility also, but not to the larger quantities. So, depending on the quantities and all those, when we are ready with that, we will produce from our clients.

Okay. Thank you. Thank you so much, sir.

Thank you. The next question is from the line of Jagjit Sandhu, an individual investor. Please go ahead.

Yes. Good morning, sir, and congratulations on the result. I just have one pointed question, and considering, you know, the incidents that took place in the last financial year, where you mentioned that there were two, you know, specific incidents, and going forward, obviously, you know, looking at the large order book that we have, what is the chances or likelihood of, you know, specific incidents taking place, and what are mitigating actions that are being planned towards that, So that, you know, the revenues which are projected could be net. Thank you, sir.

The Kate Pali incident has affected our production capability of large rocket motors, which are made for ISRO and also for strategic systems of DRTO. So, these now the equipment already in fabrication and then the building is under construction and the timeframe what we are looking at is by September month, these will come into Commissioning stage. And after commissioning, we may be in November month onwards, we are expecting that we can start producing for this facility. And about other accident in Padukandukur, that was in the flares plant, which we have already completed and then started using it for production.

All this is what we are trying to do.

And we have incorporated safety control equipment and automation and remote operations in the new facilities and new plants. Those will definitely support us in overcoming these problems what we faced.

Hello. You said that you have applied to DRDO for this alternative raw material. Have you got the approval for it?

First they were refusing, but now they have accepted it, and then they agreed to test it, and testing is going on with the raw materials.

And how part of the order book is affected by this material?

This is landmines. For example, landmines require high explosive, which is made by only MIL. And MIL was not able to meet our requirement. So now we have suggested what we produce in-house as alternate material, and they have accepted, and they are testing it to give a clearance.

Okay, sir. Thank you. That's all. Thank you.

Thank you. As there are no further questions from the participants, I now have the conference over to Mr. TV Chaudhry for closing comments.

Thank you very much. Thanks a lot for supporting us in difficult times of rebuilding our collapsed equipment and then facilities. And then I am happy to inform you that we are already into regular production, in-house production of players. And by, as I mentioned, by October, November, other things also we'll be doing. And my team is fully working on these areas to open up, that is, landmines and payloads for drones and lightning munitions and medium-galliber munitions. And I think by next financial year, we'll be meeting the requirements of domestic market, hopefully. Thank you. Thank you. Thank you.

Thank you. On behalf of Premier Explosives Limited, that concludes this conference. Thank you for joining us, and you may now disconnect the line.