Praj Industries (PRAJIND) investor relations material

Executive summary

• Q4 and FY26 performance was impacted by external headwinds, including geopolitical tensions, supply chain disruptions, and overcapacity in the domestic ethanol sector, but strategic focus remains on energy security, transition, and sustainability.

• India's biofuels ecosystem is advancing from policy to commercial readiness, with new fuel specifications and infrastructure rollouts for higher ethanol blends and flex fuel vehicles.

• International markets show positive developments for biofuels, with legislative support in the US and increased mandates in several countries, though funding challenges persist.

• Audited standalone and consolidated financial results for the quarter and year ended 31 March 2026 were approved by the Board and received unmodified audit opinions from statutory auditors.

• The group operates in the "Process and Project Engineering" segment, with significant operations both in India and internationally.

Financial highlights

• FY26 consolidated income from operations was INR 31,679 million, down 1.9% YoY; Q4 FY26 consolidated income was INR 8,445 million, down 1.8% YoY.

• FY26 consolidated net profit dropped 89.1% YoY to INR 238 million; Q4 FY26 net profit was INR 116 million, down 70.9% YoY.

• FY26 consolidated diluted EPS fell 89.1% YoY to INR 1.30; Q4 FY26 EPS was INR 0.63, down 71.0% YoY.

• Order backlog at Q4 FY26 stood at INR 43,050 million, with order intake for the quarter at INR 6,580 million.

• Export revenues accounted for 36% of FY26 revenue; segment revenue split: Bioenergy 67%, Engineering 22%, HiPurity 11%.

Outlook and guidance

• Expectation of improved business environment and performance in FY27, driven by technology edge in bioenergy and modularization.

• GenX facility expected to approach break-even in FY27 as order bookings and client certifications increase.

• Anticipate positive impact from new blending mandates, increased demand for brownfield solutions, and new business opportunities in data centers and advanced fermentation.

• Management continues to monitor the impact of new Indian Labour Codes and expects no material impact; further accounting adjustments will be made as clarifications are issued.