PRAJIND - Praj Industries
📢 Recent Corporate Announcements
Praj Industries maintains a robust financial profile with a net debt-free balance sheet and a healthy ROCE of 23% for FY25. The company reported a substantial order book of INR 44,910 million as of Q3-FY26, bolstered by a fresh order intake of INR 9,140 million during the third quarter. Revenue for 9M FY26 reached INR 23,233 million, with the Bioenergy segment remaining the primary driver at 71% of the total mix. The company is strategically positioning itself in high-growth sectors like Sustainable Aviation Fuel (SAF) and Biopolymers while maintaining a ~10% global market share in ethanol production technology.
- Total order book stands at INR 44,910 million as of Q3-FY26, with Q3 intake of INR 9,140 million.
- Maintains a 3-year EBITDA CAGR of 16% and a PAT CAGR of 13% as of FY25.
- Bioenergy segment dominates revenue at 71%, followed by Engineering at 18% and Hi Purity at 11% for 9M FY26.
- Company remains net debt-free with a strong Return on Capital Employed (ROCE) of 23%.
- Global ethanol production market share (excluding China) is approximately 10% with 1000+ references worldwide.
Praj Industries has announced its participation in the "Chasing Growth 2026" investor conference organized by Kotak Securities. The event is scheduled for February 24, 2026, at 11:00 a.m. at the Grand Hyatt in Mumbai. The company has explicitly stated that no unpublished price-sensitive information (UPSI) will be shared during these interactions. This is a routine engagement with institutional investors to discuss the company's general business environment and growth prospects.
- Participation in the 'Chasing Growth 2026' conference on February 24, 2026.
- Event organized by Kotak Securities Limited at Grand Hyatt, Mumbai.
- Interaction session scheduled to commence at 11:00 a.m. IST.
- Company confirms compliance with SEBI regulations by not disclosing any UPSI.
Praj Industries reported a consolidated income of ₹8.41 billion for Q3 FY26, remaining flat sequentially despite a challenging external environment. The company posted a net loss of ₹124 million, primarily driven by a significant one-time exceptional charge of ₹3,344 million related to revised labor codes and employee benefits. However, the order backlog remains robust at ₹44.91 billion, and the company secured new orders worth ₹9.14 billion during the quarter. Management highlighted positive developments in Sustainable Aviation Fuel (SAF) and Carbon Capture (CCUS), alongside favorable tariff reductions for exports to the USA and EU.
- Reported a net loss of ₹124 million in Q3 FY26 compared to a profit of ₹193 million in Q2 FY26.
- Exceptional item of ₹3,344 million recognized due to new government labor codes impacting gratuity and leave liabilities.
- Order backlog stands strong at ₹44.91 billion, with a quarterly order intake of ₹9.14 billion.
- Export outlook improved with USA tariff reductions on capital goods from 50% to 18% and 0% for the EU.
- Secured breakthrough orders in CCUS and precision fermentation, marking entry into high-growth segments under the BioE3 Policy.
Praj Industries has officially released the audio recording of its Analysts' Call held on February 13, 2026. The call addressed the company's un-audited financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure is a standard regulatory requirement under SEBI's Listing Obligations and Disclosure Requirements. The recording provides investors with direct access to management's discussion on operational performance and future outlook.
- Audio recording of the Analysts' Call held on February 13, 2026, is now publicly available.
- The call covered financial results for the quarter and nine months ended December 31, 2025.
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- The recording link is hosted on the company's official website for stakeholder transparency.
Praj Industries reported a challenging Q3 FY26 with consolidated revenue remaining flat at ₹8,415 Mn. The company posted a net loss of ₹124 Mn, down 130.2% YoY, largely impacted by a one-time exceptional charge of ₹344 Mn related to new Indian Labour Codes. EBITDA margins also saw a sharp decline of 290 bps to 5.62%. Despite the bottom-line hit, the order backlog remains strong at ₹44,910 Mn, though the Bioenergy segment is witnessing a slowdown in greenfield project enquiries.
- Consolidated Net Profit plummeted 130.2% YoY to a loss of ₹124 Mn in Q3 FY26.
- EBITDA margins contracted by 290 bps YoY to 5.62% due to lower export revenue and performance-based incentives.
- Recognized an exceptional impact of ₹344 Mn for gratuity and leave liabilities under new Labour Codes.
- Order backlog remains robust at ₹44,910 Mn with a Q3 intake of ₹9,140 Mn.
- Bioenergy segment revenue fell to ₹5,960 Mn from ₹6,230 Mn in the year-ago period.
Praj Industries reported a weak Q3 FY26, swinging to a consolidated net loss of Rs 123.9 million compared to a profit of Rs 411 million in Q3 FY25. Revenue remained nearly flat year-on-year at Rs 8,414.8 million, while PBT before exceptional items crashed by 63.3% to Rs 216.1 million. Despite the bottom-line pressure, the company maintains a healthy order backlog of Rs 44.9 billion and secured breakthrough orders in CCUS and precision fermentation. Management cited a challenging external environment but remains optimistic about new international trade agreements and Union Budget initiatives.
- Consolidated PAT turned to a loss of Rs 123.9 million in Q3 FY26 from a profit of Rs 411 million in Q3 FY25.
- PBT before exceptional items fell 63.3% YoY to Rs 216.1 million from Rs 588.2 million.
- Order intake for the quarter stood at Rs 9,140 million, a decline from Rs 10,530 million in Q3 FY25.
- Total order backlog remains robust at Rs 44.9 billion, with 34% comprising international orders.
- Secured significant breakthrough orders including CCUS skids for a global oil major and India's largest brewery project.
Praj Industries reported a weak performance for Q3 FY26, with revenue from operations declining 5.7% YoY to ₹6,969.48 million. Net profit plummeted by 70.1% YoY to ₹166.28 million, significantly impacted by a one-time exceptional charge of ₹309.09 million related to the implementation of New Labour Codes. Even excluding this exceptional item, operational profit before tax was down 28.8% YoY, indicating underlying margin pressure. For the nine-month period ending December 2025, PAT is down 61.9% compared to the previous year.
- Revenue from operations decreased to ₹6,969.48 million in Q3 FY26 from ₹7,393.70 million in Q3 FY25.
- Net Profit (PAT) fell sharply to ₹166.28 million compared to ₹557.19 million in the same quarter last year.
- Recorded a one-time exceptional expense of ₹309.09 million due to incremental liability from the New Labour Codes.
- Earnings Per Share (EPS) for the quarter declined to ₹0.90 from ₹3.03 YoY.
- Nine-month (9M FY26) total income stands at ₹19,306.62 million, down from ₹20,890.71 million in 9M FY25.
Praj Industries Limited has announced its earnings conference call scheduled for February 13, 2026, at 12:00 PM IST. The call will discuss the un-audited financial results for the third quarter and nine months ended December 31, 2025. Top management, including Managing Director Ashish Gaikwad and CFO Sachin Raole, will be present to address analyst queries. This is a standard regulatory procedure following the end of the financial quarter.
- Earnings call scheduled for February 13, 2026, at 12:00 PM IST.
- Discussion will cover financial results for Q3 and 9M ended December 31, 2025.
- Management representation by MD Ashish Gaikwad and CFO Sachin Raole.
- Company maintains a global footprint with 1,000+ customer references in 100+ countries.
Praj Industries Limited has informed the exchanges that its statutory auditor, M S K A & Associates, has converted into a Limited Liability Partnership. The firm will now be known as M S K A & Associates LLP, effective from January 13, 2026. This change follows the provisions of the Limited Liability Partnership Act, 2008. The auditors will continue to fulfill their obligations for the remainder of their appointed tenure without any change in the audit team or scope.
- Statutory Auditor M S K A & Associates converted to M S K A & Associates LLP effective January 13, 2026
- Updated ICAI Firm Registration Number is 105047W / W101187
- The conversion does not affect the auditor's tenure or existing obligations to the company
- The notification was officially filed with the exchanges on February 2, 2026
Praj Industries has successfully demonstrated its Ethanol-to-Jet (EtJ) process using Axens Jetanol technology, making it the first company globally to offer a fully integrated end-to-end solution for Alcohol-to-Jet (AtJ) pathways. The technology is now ready for commercial deployment, targeting a global SAF demand market projected to exceed 500 million tonnes. This breakthrough allows the conversion of ethanol into drop-in fuel compatible with existing aircraft engines. With India's SAF potential estimated at 16-19 billion liters by 2040, Praj is well-positioned to lead the aviation decarbonization sector.
- First company globally to offer fully integrated technology for both isobutanol and ethanol-to-jet pathways
- Technology validated at demo-plant scale and now ready for global commercial deployment
- Targets a massive global SAF demand of over 500 million tonnes (600 billion liters) according to IATA
- India's potential for SAF production is estimated at 16-19 billion liters by 2040
- Enables ethanol conversion into ASTM D7566 compliant drop-in fuel for existing aviation infrastructure
Praj Industries has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests for the quarter ended December 31, 2025, were processed within prescribed timelines. It verifies that physical security certificates were mutilated and cancelled after due verification. This is a standard administrative filing ensuring the integrity of the company's shareholding records.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation that securities received for dematerialization were listed on relevant stock exchanges.
- Physical certificates were mutilated and cancelled after verification by the Registrar and Share Transfer Agent.
- Register of members updated with depository names within mandatory SEBI timelines.
Praj Industries Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations ahead of the declaration of financial results. The closure pertains to the un-audited financial results for the third quarter and nine months ending December 31, 2025. The trading window will reopen 48 hours after the results are officially declared to the exchanges.
- Trading window closure effective from Thursday, January 1, 2026
- Closure is in anticipation of Q3 and nine-month financial results ending December 31, 2025
- Window to remain closed until 48 hours after the financial results are announced
- Board meeting date for result approval to be intimated separately
Dr. Pramod Chaudhari, a key promoter of Praj Industries, has acquired 72,00,000 shares (3.917% stake) from Moriyaset Trust, an entity within the promoter group. This transaction, executed on December 9, 2025, was an inter-se transfer and does not change the overall aggregate holding of the promoter group. Following this acquisition, Dr. Chaudhari's individual stake in the company has increased from 21.054% to 24.971%. The transfer was conducted under the exemption provided by SEBI (SAST) Regulations.
- Transfer of 72,00,000 equity shares representing 3.917% of the total share capital
- Acquisition by Dr. Pramod Chaudhari from Moriyaset Trust (Promoter Group)
- Dr. Pramod Chaudhari's individual holding increased from 21.054% to 24.971%
- Total aggregate promoter and promoter group holding remains unchanged post-transaction
- Compliance filings completed under SEBI (SAST) Regulation 10(7) with a fee of Rs. 1,50,000
Praj Industries has reported an inter-se transfer of 72,00,000 equity shares, representing a 3.917% stake, within its promoter group. The shares were transferred from Moriyaset Trust to Dr. Pramod Chaudhari on December 9, 2025, following the dissolution of the trust. This off-market transaction does not change the aggregate shareholding of the promoter and promoter group. Consequently, Dr. Pramod Chaudhari's individual holding has increased from 21.054% to 24.971%.
- Transfer of 72,00,000 equity shares (3.917% stake) from Moriyaset Trust to Dr. Pramod Chaudhari.
- The transaction was an off-market inter-se transfer necessitated by the dissolution of the Moriyaset Trust.
- Dr. Pramod Chaudhari's personal stake in the company increased from 21.054% to 24.971%.
- Aggregate promoter and promoter group holding remains unchanged at the company level.
- The total voting capital of the company remains at 18,38,13,088 equity shares of Rs. 2 each.
Praj Industries Limited has announced the appointment of Mr. Kumar Puri as Corporate Head - Health, Safety & Environment, effective December 9th, 2025. Mr. Puri brings over 23 years of experience in driving safety culture across various industries. He holds a bachelor’s degree in chemical engineering from Punjab Technical University, Advanced Diploma in Industrial Safety from MBTE and NEBOSH International Diploma. He is also a certified Industrial Hygienist, Certified Safety Professional by BCSP and Lead Auditor for ISO 14001 & 45001.
- Mr. Kumar Puri appointed as Corporate Head - Health, Safety & Environment effective December 9th, 2025
- Mr. Puri has more than 23 years of experience
- Mr. Puri is a Lead Auditor for ISO 14001 & 45001
Financial Performance
Revenue Growth by Segment
In H1 FY26, revenue was split as Bioenergy (64%), Engineering (26%), and Praj HiPurity Systems (10%). Order intake for Q2 FY26 was INR 810 Cr, with Bioenergy contributing 71%, Engineering 16%, and PHS 13%.
Geographic Revenue Split
Export revenue accounted for 46% of total revenue in Q2 FY26, a significant increase from the historical average of 15-20%. The order backlog of INR 4,420 Cr as of September 30, 2025, is 65% domestic.
Profitability Margins
EBITDA margins moderated from 11.19% in FY24 to 10.06% in FY25, and further declined to 5.89% in H1 FY26. PAT margins followed a similar trend, dropping from 8.18% in FY24 to 1.66% in H1 FY26.
EBITDA Margin
EBITDA margin stood at 10.06% in FY25 (INR 324.8 Cr), down from 11.19% in FY24 (INR 387.9 Cr). H1 FY26 EBITDA margin compressed significantly to 5.89% (INR 87.3 Cr).
Capital Expenditure
Praj generates steady cash accruals of INR 180-250 Cr per annum (post-dividend), which are utilized to fund capital expenditure and working capital requirements without external debt.
Credit Rating & Borrowing
CRISIL Ratings assigned an 'A+/Stable/A1' rating. The company maintains a strong financial profile with nil debt (excluding lease liabilities) and an interest coverage ratio of 19.9 times in FY25.
Operational Drivers
Raw Materials
Steel and specialized engineering materials are primary inputs. Material costs moderated to 10% of revenue in early FY24 but increased in FY23, impacting margins by approximately 70-80 basis points.
Capacity Expansion
Manufacturing facilities are located in Pune and a Special Economic Zone (SEZ) in Kandla, Gujarat. Specific capacity units (MT/units) are not disclosed.
Raw Material Costs
Raw material costs are a major driver; softening of material costs in FY24 improved margins to 10%, while price spikes in FY23 moderated margins to 8.1%. Procurement is managed through advance payments to mitigate volatility.
Strategic Growth
Growth Strategy
Growth is driven by pivoting toward 'Praj GenX' for high-growth segments, expanding the pharma/ultra-pure water portfolio, and leveraging the INR 4,420 Cr order backlog. Diversification into zero liquid discharge (ZLD) and industrial effluent treatment provides non-ethanol revenue streams.
Products & Services
1G and 2G ethanol plants, brewery installations, zero liquid discharge (ZLD) systems, ultra-pure water systems for pharma, and critical process equipment.
Brand Portfolio
Praj, Praj HiPurity Systems (PHS), Praj GenX, Praj Matrix.
New Products/Services
Praj GenX is a new strategic pivot expected to contribute to revenue uptick in FY27. 2G cellulosic ethanol technology is a key focus for the bioenergy segment.
Market Expansion
Targeting the sustainable aviation fuel (SAF) market and expanding the international footprint, which reached 46% of revenue in Q2 FY26.
Market Share & Ranking
Established market leader in the domestic distillery and brewery installation business.
External Factors
Industry Trends
The industry is shifting toward E20 ethanol blending mandates in India, benefiting the bioenergy segment (71% of Q2 FY26 orders). Future shifts include 2G ethanol and sustainable aviation fuels.
Competitive Landscape
Operates in the capital goods sector against domestic and international engineering firms; specific competitor names not disclosed.
Competitive Moat
Moat is built on proprietary 2G ethanol technology, an established domestic leadership in distilleries, and a robust R&D setup (Praj Matrix). These are sustainable due to high technical entry barriers.
Macro Economic Sensitivity
Highly sensitive to global capex cycles; historical slowdowns led to significant revenue degrowth in multiple fiscal years.
Consumer Behavior
Increased demand for green fuels and environmental compliance (ZLD) is driving demand for Praj's core bioenergy and water treatment solutions.
Geopolitical Risks
Global economic slowdowns reduce order inflows from developed countries, impacting the export-heavy engineering and PHS segments.
Regulatory & Governance
Industry Regulations
Operations are heavily influenced by government bioenergy policies and ethanol pricing/blending targets set by the Indian government.
Environmental Compliance
The company benefits from environmental regulations such as zero liquid discharge (ZLD) norms and ethanol blending mandates.
Taxation Policy Impact
Effective tax rate was 37% in H1 FY26, higher than the standard rate due to deferred tax assets created on Praj GenX losses at a lower rate.
Risk Analysis
Key Uncertainties
Key risks include the inherent cyclicality of the capital goods industry and project execution delays which could stretch the working capital cycle.
Geographic Concentration Risk
65% of the INR 4,420 Cr order backlog is concentrated in the Indian domestic market.
Technology Obsolescence Risk
Mitigated by continuous R&D at Praj Matrix and pivoting to next-gen segments like GenX.
Credit & Counterparty Risk
Strong liquidity with INR 437 Cr cash in hand as of September 2025 mitigates counterparty risk.