Are there any drawbacks to using explosions instead of guns?

In the early stage of the game, frag rockets are free and unlimited. I found that a squad with rockets, clear aliens more quickly and risk-free (almost 1 kill per shot and it rarely misses), whereas a gun usually misses and an Alien kills my troops with a single burst shot.

As I know from XCOM: Enemy Unknown, killing aliens with explosions will destroy its corpses, which are needed for crafting and researching.

However, I am new to Xenonauts and am wondering if there are any drawbacks to using explosive weapons such as grenades and rockets.

Solution 1:

Explosives will destroy a certain percentage of items. (The exact percentage can be found in the game files and is moddable.) When breaching UFO's, certain objects within the UFO correlate to end of mission loot; if you destroy this object due to explosive blast radius, you will not get this item. One such example would be a power core.

Dropped objects like weapons, clips and grenades can also be destroyed by explosives. This is especially a danger with any fallen Xenonauts - later weapons will have to be crafted and are thus not immediately available if destroyed, so if your laser-pistol wielding Xenonaut has an unfortunate accident with a grenade, you may have to produce a new laser pistol.