Annual Report

IISOR9001 REQGISTERED Premier Explosives ~ MGMT.SYS. ~ AvAC024 limited DNV Certification B.V.The Netherlands September 03, 2026 To To The General Manager The Vice President, Department of Corporate Relations Listing Department BSE Limited The National Stock Exchange of India Sir Phiroze Jeejeebhoy Towers, Limited Dalal Street, Fort, Exchange Plaza, Bandra Kurla Complex, Mumbai -400 001 Bandra (East), Mumbai 400 051 Scrip code: 526247 Scrip code: PREMEXPLN Dear Sir. Sub: Submission of 46th Annual Report of the Company for the financial year 2025-26 This is further to our letter dated August 13, 2026, wherein it was informed that 46th Annual General Meeting (AGM) of the Members of the Company is scheduled to be held on Wednesday, September 30, 2026 at 11:30 A.M. (1ST)through Video Conference (VC) / Other Audio-Visual Means (OAVM) In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. we are submitting herewith the Annual Report of the Company for the financial year 2025-26. The Annual Report for the financial year 2025-26 induding Notice of the AGM is being sent to the shareholders electronically who have registered their emai1 IDs. The same is' also available on the Company's Website at www.pelgel.com Brief details of AGM are as under: Date &Time Wednesday, 30th September, 2026 at 11:30 AM. (1ST) I Mode Video Conference (VC) / Other Audio Visual Means (OAVM) I Cut-off Date 23tU September, 2026 I Evoting start date &time 26th September, 2026 at 09:00 A.M (1ST) I E-voting end date &time 29th September, 2026 at 05:00 P.M. (lST) I Kindly take the above information on record. Thanking you, Yours faithfully. For Premier Explosives Limited K. Jhansi Laxmi Company Secretary Regd. Office: "Premier House", # 11, Ishaq Colony, Near AOC Centre, Secunderabad - 500 015. (T.G.) INDIA Ph. No. :040-66146801 to 6803,6851 Fax: +91-40-66146839, +91-40-27843431 Email :investors@pelgel.com Website: www.pelgel.com CIN : L24110TG1980PLC002633 Energising Progress 46th Annual Report 2025-26 TABLE OF CONTENTS From Energetic Materials to Strategic Readiness 1 STATUTORY REPORTS Chairman’s Communication 2 Management Discussion and Analysis 21 Managing Director’s Review 4 Directors’ Report 25 Milestones in Indigenous Capability Creation 6 Report on Corporate Governance 35 What Sets Premier Explosives Apart 7 Business Responsibility & Sustainability Report 68 Business Portfolio Review 8 Strategic Defence and Space Capabilities 9 FINANCIAL STATEMENTS Defence Platform Contribution Matrix 10 Standalone Independent Auditor’s Report 97 Supporting India’s Launch Ecosystem 12 Standalone Financial Statements 106 Industrial Explosives 13 Notes to Standalone Financial Statements 110 Board Stewardship and Domain Expertise 14 Consolidated Independent Auditor’s Report 151 Senior Leadership Team 16 Consolidated Financial Statements 158 Corporate Information 17 Notes to Consolidated Financial Statements 162 FY26 Performance Highlights 18 Opportunity Landscape and Vision 2030 Priorities 19 NOTICE 10 Years at a Glance 20 Notice of the 46th Annual General Meeting 203 Disclaimer Statements in this report that describe the Company’s objectives, projections, estimates, expectations or predictions of the future may be ‘forward-looking statements’ within the meaning of the applicable securities laws and regulations. The Company cautions that such statements involve risks and uncertainty and that actual results could differ materially from those expressed or implied. Important factors that could cause differences include raw materials’ cost or availability, cyclical demand and pricing in the Company’s principal markets, changes in government regulations, economic developments within the countries in which the Company conducts business, and other factors relating to the Company’s operations, such as litigation, labour negotiations and fiscal regimes. Some of the images used in this report are purely for illustrative purposes and hence they are not the photos/ images of our facilities, products or of any such nature/kind. From Energetic Materials to Strategic Readiness Premier Explosives Limited (PEL), incorporated in 1980, has progressed from a commercial explosives manufacturer into a specialised high-energy materials company serving defence, space, mining and infrastructure requirements. The Company’s evolution has been shaped by indigenous technology, disciplined manufacturing practices and the ability to translate energetic-material expertise into mission- critical products for national programmes. The FY26 operating environment reflected both the strength and timing-linked nature of this portfolio. Revenue from operations stood at ₹ 3,883.4 million. Defence and Space services contributed ₹ 3,154 million, representing 81% of annual revenue, while Commercial Explosives contributed ₹ 729 million. FY26 revenue was lower than FY25, primarily because of ban on electric detonators production; however, profitability improved substantially, supported by higher other income and a favourable mix of products. A broader high-energy portfolio Capabilities that support visibility PEL manufactures and supports products across solid propellants, As of May 2026, the order book stood at Rs 15,690 million, equal pyrotechnic devices, countermeasure systems, explosive to about 4.04 times FY26 revenue. Defence orders comprised compositions, detonators, detonating fuse, cast boosters and bulk around 95% of this order book, providing a stronger base for future explosives. Its defence portfolio includes propellants for missile execution. With six manufacturing facilities across Telangana, systems, Chaffs and Flares, pyrogen igniters, rocket motors, pyro Madhya Pradesh and Maharashtra, a team of more than 850 people, cartridges, explosive compositions and products for tactical and and around 100 engineers and scientists, PEL is positioned as a strategic applications. The Company also undertakes operation specialised partner in India’s defence and space value chain. and maintenance services for solid propellant facilities at ISRO’s During FY26, our revenue mix continued to shift towards Defence Sriharikota Centre. and Space, supported by a larger defence-led order pipeline. Chairman’s Communication Building with Responsibility and Readiness The year’s financial numbers need to be read in this context. Revenue from operations stood at ₹3,883.4 million compared with ₹4,174.5 million in FY25. This reduction was largely linked to stoppage of electric detonator production. Even with this revenue moderation, the Company delivered a stronger bottom- line performance. EBIT increased to ₹692.8 million and Profit After Tax rose to ₹458.3 million. Cash profit also improved to ₹575.1 million. These outcomes demonstrate the resilience of our operating model and our ability to create value through a balanced portfolio. Dear Shareholders, review mechanisms and accountability pyrotechnic devices, countermeasures for across our operating locations. This will defence and aerospace, places us at an FY26 was a year of transition, consolidation remain an uncompromising priority. important intersection of industrial activity and renewed preparedness for Premier and national capability creation. Explosives Limited. We entered the year At the same time, the Company continued with the responsibility of strengthening our to serve critical national programmes in The year’s financial numbers need to be read safety systems after the tragic incidents at defence and space. Premier Explosives in this context. Revenue from operations our Peddakandukuru and Katepally facilities. operates in a specialised segment where stood at ₹3,883.4 million compared with Those events remain a sobering reminder credibility is earned over years through ₹4,174.5 million in FY25. This reduction that in our industry, operational excellence technical consistency, product reliability and was largely linked to stoppage of elect [Showing first 8,000 characters — download PDF for full document]