Praj Industries (PRAJIND) investor relations material

Executive summary

• Q1 FY26 saw significant declines in consolidated revenue and net profit, with net profit dropping 93.7% year-over-year and operating income down 8.4% year-over-year.

• Order intake for Q1 FY26 ranged from INR 5,795 million to INR 7,950 million, with a strong order backlog of INR 4,450 million to INR 44,480 million, largely from the Bioenergy segment.

• International orders comprised up to 45% of Q1 FY26 intake, reflecting growing global traction despite domestic challenges.

• Standalone and consolidated results reflect operations in Process and Project Engineering, with Bioenergy as the largest contributor to order intake and backlog.

• Prior year included a one-time exceptional gain from land sale, impacting year-over-year comparability.

Financial highlights

• Consolidated operating income for Q1 FY26 was INR 6,400–6,402 million, down 8.4% year-over-year.

• EBITDA margin dropped to 4.9%, the lowest in at least 15-16 quarters.

• Net profit for Q1 FY26 was INR 53–63 million, down 93.7% year-over-year; PAT margin at 0.8%.

• Cash in hand as of June 30 was INR 4,500 million; company remains net debt free.

• Final dividend of 300% per share approved; dividend payout ratio at 35–39% for FY24–FY25.

Outlook and guidance

• Management expects margin pressure to persist into Q2, with improvement anticipated from H2 FY26.

• High single-digit EBITDA margins targeted for coming quarters; growth vectors include bioenergy, internationalization, and new product lines like bioplastics.

• Domestic ethanol business faces volume drop due to delayed execution and customer liquidity crunch; international opportunities are rising, especially in the Americas.

• SAF segment shows promise with new engineering orders and policy support expected.

• No specific order book or revenue guidance provided.