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.

Praj Industries , a leader in sustainable solutions, has developed a groundbreaking low-carbon technology aimed at significantly reducing carbon emissions at Aemetis' ethanol facility in California. This innovative solution targets the reduction of environmental impact in ethanol production operations, marking a significant step towards greener fuel production.

Environmental Impact Reduction

The newly developed solution by Praj Industries is expected to have a substantial impact on the carbon footprint of ethanol production. By focusing on lowering carbon emissions, this technology addresses one of the key environmental concerns associated with biofuel production.

Collaboration with Aemetis

Aemetis, a renewable natural gas and renewable fuels company, will be implementing this low-carbon solution at their California ethanol facility. This collaboration between Praj Industries and Aemetis demonstrates a commitment to sustainable practices in the biofuel industry.

Implications for the Ethanol Industry

This development could have far-reaching implications for the ethanol industry:

• Environmental Benefits: Reduction in carbon emissions aligns with global efforts to combat climate change.
• Regulatory Compliance: The solution may help ethanol producers meet increasingly stringent environmental regulations.
• Market Competitiveness: Lower-carbon ethanol could potentially command premium pricing in environmentally conscious markets.

Technological Advancement

This low-carbon solution showcases Praj Industries' capability in developing cutting-edge technologies for the biofuel sector. It reinforces the company's position as an innovator in sustainable solutions for the renewable energy industry.

While specific details about the technology and its implementation are not provided, this development represents a significant step forward in making ethanol production more environmentally friendly. As the world continues to seek cleaner energy solutions, innovations like this from Praj Industries play a crucial role in shaping the future of the biofuel industry.