Praj Industries , a leading bioenergy solutions provider, reported a challenging first quarter, with revenue and profit figures showing a significant decline. The company, however, remains optimistic about its long-term growth prospects and is actively pursuing diversification strategies to navigate the current market headwinds.

Financial Performance

For Q1, Praj Industries reported consolidated revenue of Rs 640.00 crore, down from Rs 699.00 crore in the same quarter of the previous year. The company's profit before tax (PBT) saw a sharp decline to Rs 9.61 crore, compared to Rs 78.88 crore in the corresponding period last year. Profit after tax (PAT) fell to Rs 5.34 crore from Rs 84.10 crore year-on-year.

The EBITDA margin for the quarter stood at 4.9%, marking the lowest in 15-16 quarters, primarily due to reduced volume, increased site-related expenses, and GenX business costs without corresponding revenues.

Order Book and Intake

Despite the challenging quarter, Praj Industries secured an order intake of Rs 795.00 crore, with the order backlog standing at Rs 4,450.00 crore. The bioenergy segment contributed 80% of the total order intake, while engineering and PHS (Praj HiPurity Systems) segments accounted for 12% and 8%, respectively.

Market Challenges and Strategic Focus

Ashish Gaikwad, Managing Director of Praj Industries, highlighted several factors impacting the company's performance:

1. Domestic Ethanol Market: India's achievement of the EBP20 (20% ethanol blending in petrol) target ahead of schedule has led to a temporary slowdown in new greenfield ethanol plant orders due to excess capacity.

2. International Market Uncertainties: Geopolitical scenarios and uncertainty around U.S. tariffs have slowed down capital expenditure-related decisions, affecting order bookings.

3. Liquidity Challenges: Domestic customers are facing liquidity issues, resulting in delayed and extended project execution cycles.

4. GenX Facility Impact: The company's GenX facility is facing challenges due to reduced prioritization of energy transition projects and tariff uncertainties, negatively impacting the bottom line.

Strategic Initiatives and Future Outlook

Despite the current challenges, Praj Industries is focusing on several strategic initiatives:

1. Diversification: The company is exploring opportunities in sustainable aviation fuel (SAF), diesel-ethanol blending, and bioplastics to drive future growth.

2. Value-Added Products: Praj is offering plant modifications and co-product solutions such as Distillers Corn Oil (DCO) and rice protein to existing ethanol producers.

3. CBG and Bio-bitumen: The company is seeing increased traction for its unique offering of combined Compressed Biogas (CBG) and Bio-bitumen plants, which improve project ROI and payback periods.

4. International Expansion: Praj is actively pursuing opportunities in Latin America and other international markets to offset domestic market slowdowns.

5. Services Business: The company's services business continues to show healthy growth, with a good pipeline for biogenic CO2 capture solutions.

Sachin Raole, Chief Financial Officer, expressed confidence in the company's ability to improve profitability from H2 onwards. The management remains committed to its Vision 2030 growth targets, emphasizing that while growth may not be linear, the company is adapting to market changes and exploring new avenues for expansion.

Despite the current headwinds, Praj Industries maintains that its core fundamentals remain strong, and its growth vectors are intact. The company is actively working on diversifying its portfolio and expanding its international presence to drive long-term sustainable growth in the evolving bioenergy and renewable chemicals sectors.

Praj Industries Limited , a leading process solutions company, successfully conducted its 39th Annual General Meeting (AGM) on August 11, 2025, via video conferencing. The shareholders approved all nine resolutions with requisite majority, marking significant decisions for the company's future.

Key Approvals and Financial Decisions

Shareholders gave their nod to the adoption of standalone and consolidated financial statements for the year ended March 31, 2025. A notable highlight was the approval of a dividend of Rs. 6.00 per equity share, representing a 300% return on the face value of Rs. 2.00 per share.

Leadership Changes and Appointments

The AGM saw important changes in the company's leadership structure:

• Mr. Parth Chaudhari was appointed to the board, replacing Ms. Parimal Chaudhari, who retired by rotation.
• Dr. Pramod Chaudhari's appointment as Founder Chairman and Mentor-Praj Group for a five-year term from July 1, 2025, to June 30, 2030, received 77.03% votes in favor.
• Mr. Berjis Desai was approved as a Non-Executive Non-Independent Director, with 91.43% of votes supporting his appointment.

Auditor Appointments

The shareholders approved the appointment of new auditors:

• MSKA & Associates as statutory auditors
• MSN Associates as secretarial auditors
• Ratification of Dhananjay V. Joshi & Associates as cost auditors for the financial year ending March 31, 2026

Voting Highlights

The e-voting process, which included remote e-voting from August 7-10, 2025, and voting during the AGM, saw strong participation from shareholders. Notable voting results include:

Meeting Proceedings

The AGM, which lasted from 10:00 AM to 10:50 AM, was attended by 93 members, including key management personnel and auditors. Nine shareholders posed questions, which were addressed by the Chairman.

The successful completion of the AGM with strong shareholder support on all resolutions indicates confidence in Praj Industries' leadership and strategic direction. The company continues to focus on process solutions, with these approvals paving the way for its future growth and governance structure.