Praj Industries , a leading bioenergy solutions provider, reported mixed financial results for the second quarter of fiscal year 2026, reflecting both growth and challenges in its various business segments.

Financial Performance

Praj Industries reported consolidated revenue of Rs. 8.42 billion in Q2 FY26, a slight increase from Rs. 8.16 billion in Q2 FY25. However, the company faced significant pressure on its profitability:

The substantial decline in profitability can be attributed to challenges in the domestic ethanol segment and international business headwinds.

Operational Highlights

• Order intake for Q2 FY26 stood at Rs. 8.1 billion, with 73% coming from the domestic market.
• The order backlog as of September 30, 2025, was Rs. 44.2 billion.
• Segment-wise order intake breakdown:
  • Bioenergy: 71%
  • Engineering: 16%
  • PHS (Praj HiPurity Systems): 13%

Domestic Ethanol Segment Challenges

Praj Industries faces challenges in the domestic ethanol segment due to India achieving its EBP20 (Ethanol Blending Program 20%) target. The current production capacity in the country now meets the EBP20 requirements, necessitating new avenues for further growth.

International Business Impact

The company's international business is impacted by U.S. tariff scenarios, which may affect future order inflows and project executions.

Strategic Initiatives

1. Pivoting GenX facility strategy towards oil and gas markets due to stalled energy transition projects.
2. Successfully commissioned the first alcohol-to-jet Sustainable Aviation Fuel (SAF) demo plant.
3. Executing the first low carbon ethanol project in the USA.

Liquidity Position

Praj Industries maintains a strong liquidity position with cash in hand of Rs. 4.37 billion as of September 30, 2025.

Future Outlook

Despite the current challenges, Praj Industries remains committed to its long-term growth vision. The company is focusing on:

1. Brownfield opportunities for installed base, including plant enhancements and efficiency improvements.
2. Expanding its presence in the Compressed Biogas (CBG) segment.
3. Developing new technologies such as bioplastics and sustainable aviation fuel.
4. Exploring opportunities in the U.S. market for low carbon ethanol projects.

As Praj Industries navigates through the evolving market dynamics, its diversified portfolio and focus on innovation are expected to play crucial roles in maintaining its market position and driving future growth.

Praj Industries , a leading process and project engineering company, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amid challenging market conditions.

Revenue Growth Amidst Profit Decline

For the quarter ended September 30, 2025, Praj Industries reported a consolidated revenue of Rs. 8,416.30 million, marking a 3.1% increase from Rs. 8,161.90 million in the same quarter of the previous year. However, the company's net profit saw a significant decline, dropping to Rs. 192.80 million from Rs. 538.30 million year-over-year, representing a 64.2% decrease.

Financial Highlights

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY26 stood at Rs. 320.00 million, a substantial decrease from Rs. 862.00 million in Q2 FY25. Consequently, the EBITDA margin contracted significantly to 3.81% from 10.56% in the previous year, a decline of 675 basis points.

Half-Year Performance

For the first half of FY26, Praj Industries reported:

• Consolidated revenue of Rs. 14,818.40 million, down 2.2% from Rs. 15,153.30 million in H1 FY25
• Net profit of Rs. 246.20 million, a sharp decline from Rs. 1,380.10 million in the same period last year

Order Book and Business Outlook

The company secured new orders worth Rs. 8,130.00 million during Q2 FY26, slightly lower than the Rs. 9,210.00 million in Q2 FY25. For the first half of FY26, the total order intake stood at Rs. 16,080.00 million, compared to Rs. 18,090.00 million in H1 FY25.

Management Commentary

Ashish Gaikwad, Managing Director of Praj Industries, commented on the results: "Our unwavering focus on execution enabled us to deliver Q2FY26 performance despite continued challenges in the external business environment- particularly in the domestic ethanol segment and in the international market due to US tariff headwinds. We remain committed to focusing on controllable factors in the second half of FY26 and our vision to deliver long-term growth aspirations."

Key Development

Praj Industries announced a significant milestone in its research and development efforts. The company's SAF (Sustainable Aviation Fuel) demo plant at Praj Matrix, its R&D center, has become the first integrated Alcohol to Jet fuel plant in the world. This development is expected to boost customer confidence in SAF technology and potentially drive commercial scale investment decisions.

Conclusion

While Praj Industries has managed to grow its revenue slightly in Q2 FY26, the significant decline in profitability highlights the challenges faced by the company in the current business environment. The management's focus on execution and long-term growth, coupled with innovations like the SAF demo plant, may play crucial roles in navigating the company through these challenging times.