Praj Industries announced its Unaudited Financial Results for the third quarter and nine months ended December 31, 2025. Consolidated operational revenue for Q3-FY26 was INR 8,415 Mn, a minor dip of 1.3% YoY, while 9M-FY26 revenue stood at INR 23,233 Mn (down 1.9% YoY). A significant exceptional item of (INR 344 Mn) impacted the quarterly consolidated PBT, leading to a net loss of INR (124) Mn for Q3-FY26.
Q3 & 9M FY26 Performance Highlights
Standalone Performance (Q3-FY26)
The standalone performance for Q3-FY26 showed a year-over-year decline across key metrics. Operating Income was INR 6,969 Mn, marking a (5.7)% YoY change. Operating EBITDA stood at INR 550 Mn, decreasing by (23.2)% YoY, leading to EBITDA Margins of 7.89%. Profit After Tax (PAT) fell significantly by (70.2)% YoY to INR 166 Mn, resulting in PAT Margins of 2.38%. Diluted EPS for the quarter was INR 0.90/Share.
Consolidated Performance (Q3-FY26)
Consolidated Operating Income for Q3-FY26 was INR 8,415 Mn (down 1.3% YoY). Operating EBITDA saw a sharper decline of (34.9)% YoY to INR 473 Mn, with EBITDA Margins compressing to 5.62%. The quarter registered a Net Loss of INR (124) Mn, primarily due to an exceptional item charge of (INR 344 Mn) recognized following the new Labour Codes notifications. Diluted EPS stood at INR (0.67)/Share.
Year-to-Date (9M-FY26) Consolidated Results
For the first nine months of FY26, Consolidated Operational Income reached INR 23,233 Mn, a decrease of (1.9)% YoY. EBITDA was INR 1,346 Mn, falling (46.3)% YoY, bringing EBITDA Margins down to 5.79%. Consolidated Profit After Tax was INR 122 Mn, a substantial drop of (93.2)% YoY, with PAT Margins at 0.53%.
Operational & Segmental Highlights
Segmental Revenue Mix (Q3-FY26)
The revenue mix for the quarter highlights the continued dominance of the Bioenergy segment, contributing 71% of total revenue. Engineering accounted for 18%, while HiPurity contributed 11%.
Segmental Revenue Trend (Consolidated)
Bio Energy Revenue declined (4.3)% YoY in Q3-FY26 to INR 5,960 Mn. Engineering revenue remained flat at INR 1,560 Mn. HiPurity saw strong growth, increasing by 20.3% YoY to reach INR 890 Mn in Q3-FY26. For the 9M-FY26 period, Bio Energy revenue was INR 15,193 Mn (down 9.9% YoY), while Engineering revenue grew 13.2% YoY to INR 5,556 Mn.
Geographical Revenue (Q3-FY26)
The geographical split shows that Domestic sales accounted for 66% of the revenue in Q3-FY26, with Export making up the remaining 34%. Management noted that overall margins were impacted by a 1% reduction due to lower export revenue this quarter.
Order Intake and Backlog
Order Intake (Q3-FY26)
The Order Intake for Q3-FY26 was INR 9,140 Mn, showing an uptick from Q2-FY26’s intake of INR 8,130 Mn. Segmentally, Bioenergy led intake at 45%, followed closely by Engineering at 42%, and HiPurity at 13%. Geographically, 68% of the intake was Domestic.
Order Backlog (As on Q3-FY26)
The total Order Backlog at the end of the quarter stood strong at INR 44,910 Mn. The backlog composition is heavily weighted towards Bioenergy at 77%, with Engineering contributing 18% and HiPurity at 5%.
Operational and Industry Highlights
Bioenergy Outlook
The company observes a slowdown in enquiries for greenfield projects as EBP20 capacity requirements have been surpassed. However, there is an increase in enquiries for brownfield projects with existing customers. Positive policy developments in international markets including Indonesia, Panama, Argentina, Guatemala, Costa Rica and Bolivia are noted.
GenX, ZLD, and PHS Advancements
- GenX: Received a significant breakthrough order for CCUS skids from a global oil major. Data Centers are emerging as a new business opportunity.
- ZLD: Favorable regulatory drive continues. New opportunities are emerging from the Battery, Solar panels and Semiconductor segments. A significant integrated plant offering order was received from a leading metal major.
- PHS: Received the first contract under the National BioE3 policy for precision fermentation from Embio Ltd., Dahej.
- Brewery: Secured a contract for a greenfield project to set up the largest brewery in India.
Historical Context and Capital Structure
Historical Financial Trends
Reviewing historical consolidated data shows strong revenue growth between FY22 (INR 23,433 Mn) and FY24 (INR 34,663 Mn). However, profitability faced headwinds in the recent period; Consolidated PAT for 9M-FY25 was INR 1,791 Mn, whereas 9M-FY26 PAT dropped to INR 122 Mn. ROCE for FY25 stood at 24%.
Capital Market Data (As on December 31, 2025)
As of the reporting date, the Market Price was INR 322.35, leading to a Market Cap of INR 59,252.1 Mn. The company maintains a Net Debt Free status, with a Net Debt to Equity ratio of (0.20)x for H1-FY26. The Promoter shareholding stands at 32.81%, while Mutual Funds hold 13.09%.
Source: BSE
