This article first appeared on GuruFocus .
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Consolidated Income from Operations:INR8.42 billion in Q2 FY26, compared to INR8.16 billion in Q2 last year.
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Profit Before Tax (PBT):INR296.1 million in Q2 FY26, compared to INR744.4 million in Q2 FY25.
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Profit After Tax (PAT):INR192.8 million in Q2 FY26, compared to INR538 million in Q2 FY25.
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Income from Operations (H1 FY26):INR14.8 billion, compared to INR15.15 billion in H1 FY25.
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Profit Before Tax (H1 FY26):INR392 million, compared to INR1.53 billion in H1 FY25.
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Profit After Tax (H1 FY26):INR246 million, compared to INR1.38 billion in H1 FY25.
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Effective Tax Rate:35% for Q2 FY26 and 37% for H1 FY26.
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Export Revenue:46% of total revenue in Q2 FY26.
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Revenue Breakdown:64% from bioenergy, 26% from engineering, and 10% from PHS business.
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Order Intake:INR8.1 billion during the quarter, with 73% from the domestic market.
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Order Backlog:INR44.2 billion as of September 30, 2025, with 65% domestic orders.
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Cash in Hand:INR4.37 billion as of September 30, 2025.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Praj Industries Ltd ( BOM:522205 ) reported a consolidated income from operations of INR8.42 billion for Q2 FY26, showing an increase from INR8.16 billion in the same quarter last year.
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The company is executing its first low carbon ethanol project in the USA, expected to be commissioned by the end of the fiscal year.
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Praj Industries Ltd ( BOM:522205 ) has a strong order backlog of INR44.2 billion as of September 30, 2025, with 65% of orders from the domestic market.
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The company has successfully produced Sustainable Aviation Fuel (SAF) from ethanol at its demo plant, marking a significant milestone in its bioenergy segment.
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There is a healthy pipeline of inquiries for compressed biogas projects, particularly those based on Napier grass, indicating potential future growth.
Negative Points
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The company faced challenges in the domestic ethanol segment due to headwinds and a slowdown in greenfield projects.
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Execution cycles for existing projects are being extended due to funding challenges, impacting project timelines.
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Praj Industries Ltd ( BOM:522205 ) reported a decrease in profit before tax, from INR744.4 million in Q2 FY25 to INR296.1 million in Q2 FY26.
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The effective tax rate for the consolidated financials is high, at 35% for Q2 FY26 and 37% for H1 FY26, impacting net profitability.
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There are delays in achieving full capacity utilization at the GenX facility, pushing expected timelines by a year to FY28.
Q & A Highlights
Q: Can you provide more details on the challenges faced by the Gen X segment and the strategy moving forward? A: The fixed cost for the Gen X facility is around 8.5 to 9 crores per month, with limited absorption due to low order booking. We are actively pursuing new orders in the US market despite tariff challenges. The strategy is shifting towards traditional energy segments, and full capacity utilization is expected by FY28 instead of FY27. - Ashish Gaikwad, Managing Director
Q: What are the current challenges with project funding and collections? A: The challenges are primarily with customers' funding arrangements, leading to delays in project execution. Financial closures are taking longer due to increased scrutiny and equity requirements. However, some projects have reached financial closure and are moving forward. - Ashish Gaikwad, Managing Director
Q: How is the company addressing the slowdown in domestic ethanol projects and what are the future growth avenues? A: With the EBP20 target achieved, focus is shifting to lifecycle services and brownfield opportunities. Internationally, there is a strong pipeline for low carbon ethanol projects, especially in the USA, Latin America, and Southeast Asia. - Sachin Raole, CFO
Q: Can you elaborate on the progress and potential of the sustainable aviation fuel (SAF) and bioplastics segments? A: The alcohol-to-jet demo plant is operational, producing SAF from ethanol, marking a significant milestone. For bioplastics, we have developed lactic acid technology and are in discussions with potential customers. These segments are expected to contribute significantly in the future. - Sachin Raole, CFO
Q: What is the impact of US tariffs on your business, and how are you addressing it? A: The US tariffs primarily affect our customers, but we are exploring ways to mitigate the impact. The demand for low carbon solutions remains strong, and we are working on strategies to continue serving the US market effectively. - Ashish Gaikwad, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
