Praj Industries Limited delivered a steady performance in Q3 FY26 despite challenging external conditions, with the company securing its first breakthrough order in the Carbon Capture, Utilization, and Storage (CCUS) segment from a global oil major. The quarter saw flat revenue growth but marked important strategic progress across multiple business verticals.

Financial Performance Overview

The company's consolidated financial results for Q3 FY26 showed mixed performance across key metrics:

For the nine-month period ended December 31, 2025, income from operations was Rs.23.23 billion compared to Rs.23.7 billion in the corresponding period of the previous financial year. The company's profit before tax (before exceptional items) for nine months stood at Rs.608 million against Rs.2.1 billion in nine months of FY25.

The company recognized an incremental Rs.3,344 million impact from increased gratuity and leave liabilities due to revised definition of wages following new labor codes notification by the Government of India on November 21, 2025.

Strategic Order Wins and Business Developments

Praj Industries achieved several significant milestones during the quarter, particularly in diversifying its order portfolio:

The quarter's order intake reached Rs.9.14 billion, with domestic markets contributing 68%. The order composition showed 45% from bio-energy, 42% from engineering, and 13% from PHS (Praj HiPurity Systems) business. This represents a strategic shift as the company diversifies beyond traditional ethanol projects.

Technology and Market Developments

The company made notable progress in emerging technology areas. In the Bio-Isobutanol (Bio-IBA) segment, management indicated that their technology for diesel blending is ready for commercialization and scale-up. This represents a potential new avenue for bio-fuel applications in India's predominantly diesel-based transport sector.

On the Sustainable Aviation Fuel (SAF) front, Praj's integrated ethanol-to-jet demonstration plant at their R&D center Matrix received recognition at WINGS INDIA 2026. The company is currently executing basic engineering orders for ethanol-to-SAF plants for U.S. customers, with completion expected by end of FY26.

In Compressed Biogas (CBG), the company commissioned two plants using mixed feedstocks of Napier grass and rice straw, with capacity ramp-up underway. These additions complement their existing successful Press mud-based CBG plants.

GenX Facility Progress and International Market Expansion

The GenX facility in Mangalore achieved a significant breakthrough with its first major order after facing challenges in the Energy Transition and Climate Action (ETCA) segment. The facility now has:

• 12 completed customer audits and certifications
• 4 framework agreements with key customers
• First CCUS skids order from global oil major
• Target of Rs.500 crores order booking for FY27

Management expects 50% to 60% of the CCUS order to convert into revenue during FY27, supporting the facility's path toward breakeven.

Policy Environment and Future Outlook

Several positive policy developments emerged during the quarter. The Union Budget 2026-27 announced a Rs.20,000 crores outlay over five years for CCUS development and phased mandatory blending of CBG into CNG for transportation fuel. Additionally, trade agreements with the USA, EU, and UK resulted in significant tariff reductions - from 50% to 18% for U.S. markets and zero percent for EU exports.

The NITI Aayog report "Scenarios Towards Viksit Bharat and Net Zero" highlighted the expanding role of biofuels in India's net-zero journey, particularly for aviation, long-haul freight, and rural mobility sectors.

Operational Metrics and Cash Position

As of December 31, 2025, the company maintained a cash position of Rs.5.9 billion and an order backlog of Rs.44.91 billion, with 66% comprising domestic orders. The revenue mix showed 71% from bio-energy, 19% from engineering, and 11% from PHS business.

While the 1G ethanol domestic business continues experiencing slowdown in Greenfield projects due to supply-demand imbalance, the company is focusing on Brownfield solutions including performance enhancement and value-added co-products like distillers corn oil, where it secured multiple orders during the quarter.

Praj Industries Limited has made available the audio recording of its analysts' conference call held on February 13, 2026, which discussed the company's unaudited financial results for the third quarter and nine months ended December 31, 2025. The recording link has been shared through a regulatory filing under SEBI Regulation 30.

Recording Access Details

The company has provided direct access to the complete analysts' call recording through its corporate website. This follows the scheduled conference call that was conducted at 12:00 PM IST on February 13, 2026.

Conference Call Participation

The original earnings call was conducted by the company's senior management team, including Mr. Ashish Gaikwad (Managing Director) and Mr. Sachin Raole (CFO & Director Resources). The call provided investors and analysts with comprehensive insights into the financial performance for the reporting period.

Regulatory Filing

The audio recording availability was communicated through an official letter dated February 13, 2026, signed by Anant Bavare, Company Secretary & Compliance Officer. The communication was sent to both NSE (Company Code: PRAJIND) and BSE (Security Code: 522205) as per listing compliance requirements.

About Praj Industries

Praj Industries is India's most accomplished industrial biotechnology company, driven by innovation, integration and delivery capabilities. Over four decades, the company has focused on environment, energy, and agri-process industry sectors, with over 1000 customer references spanning more than 100 countries across all continents. The company's portfolio includes bio-energy solutions, critical process equipment, breweries, zero liquid discharge systems, and high purity water systems.