Praj Industries has released the transcript of its analysts' call held on May 29, 2026, discussing the audited financial results for the quarter and year ended March 31, 2026. This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Management addressed the sharp decline in profitability for FY26, citing execution challenges and rising expenses, while outlining strategic shifts towards bioenergy expansion and new market segments like data centers.

Financial Performance Context

The company reported a consolidated net profit of ₹238 million for FY26, a decline of 89.1% from ₹2,189 million in the previous year. Operating income decreased by 1.9% to ₹31,679 million. Profit before tax dropped significantly to ₹499 million. The Board of Directors proposed a final dividend of ₹3.60 per equity share, subject to shareholder approval.

Consolidated Performance Overview

Profitability was impacted by rising expenses and execution challenges. For the full year FY26, Praj Industries recorded an operating EBITDA of ₹1,518 million, a 51.7% decrease from ₹3,145 million in FY25. The diluted earnings per share (EPS) stood at ₹1.30, down from ₹11.91 in the previous year.

Quarterly and Segmental Trends

In Q4-FY26, the company reported a consolidated net profit of ₹116.1 million, a 70.9% decline from ₹398.2 million in the same quarter last year. Operating income for the quarter stood at ₹8,445.6 million. Segment-wise, Bioenergy accounted for 67% of total revenue, followed by Engineering at 22% and Hi Purity at 11%.

Strategic Outlook and Order Book

Despite the revenue decline, the company maintained a robust order book. Order intake in Q4-FY26 was ₹6,580 million, with Bioenergy contributing 86% of new orders. The total order backlog at the end of Q4-FY26 was ₹43,050 million. Management highlighted that the domestic market contributed 74% of segmental revenues in Q4-FY26. The company is pursuing opportunities in data center cooling systems and expects the first order for bio-isobutanol technology in the current quarter of FY27. Cash in hand as of March 31, 2026, stood at ₹6.12 billion.

Praj Industries Limited has recommended a final dividend of ₹3.60 per equity share, or 180% of the face value of ₹2 each, for the financial year ended March 31, 2026. This decision was taken during a Board meeting held on May 28, 2026. The dividend is subject to the approval of shareholders at the ensuing Annual General Meeting. If approved, the payout will be made within 30 days from the date of approval.

Board Decisions and Appointments

Based on the recommendation of the Nomination & Remuneration Committee, the Board approved the re-appointment of Ms. Rujuta Jagtap as an Independent Director for a further period of three years. Her term is effective from August 21, 2026, to August 20, 2029, subject to shareholder approval via Special Resolution. Ms. Jagtap is not debarred from holding the office of Director by any authority.

The Board also appointed new auditors for the financial year 2026-27. Khare Deshmukh & Co., Chartered Accountants (Firm Registration No. 116141W), were appointed as Internal Auditors. Dhananjay V. Joshi & Associates (Firm Registration No. 000030) were appointed as Cost Auditors. These appointments were based on the recommendations of the Audit Committee.

Director Profile

Ms. Rujuta Jagtap brings over 23 years of experience in management, administration, and marketing. She completed her MBA in International Business in 2002 and currently serves as an Executive Director on the Board of Saj Test Plant Pvt. Ltd. She is also a member of the Board of Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) since 2018. Previously, she worked with TATA Steel Ltd. and Standard Chartered Grindlays Bank.