Praj Industries (PRAJIND) Q2 2026 earnings summary

Executive summary

• Q2 and H1 FY26 results reflect strong execution despite headwinds in domestic ethanol and international markets due to U.S. tariffs, with Board and auditor review confirming no material misstatements.

• Operating income for Q2 FY26 (consolidated) grew 3.1% YoY to INR 8,416 million, but net profit declined 64.1% YoY to INR 193 million, with margins under pressure across segments.

• H1 FY26 consolidated operating income was INR 14,818 million, down 2.2% YoY, with net profit falling 82.2% YoY to INR 246 million.

• Diversified portfolio in industrial effluent treatment, pharma, ultra-pure water, and brewery supports resilience.

• Order backlog remains robust at INR 44,190 million, with 82% from the Bioenergy segment.

Financial highlights

• Q2 FY26 consolidated income from operations: INR 8,416.34 million (vs. INR 8,161.92 million in Q2 FY25); standalone revenue: INR 6,858.60 million (vs. INR 5,103.17 million in Q2 FY25).

• Q2 FY26 consolidated net profit: INR 192.83 million (vs. INR 538.31 million in Q2 FY25); standalone net profit: INR 416.63 million (vs. INR 199.61 million in Q2 FY25).

• H1 FY26 consolidated net profit: INR 246 million (down 82.2% YoY); standalone net profit: INR 1,497.16 million.

• Q2 FY26 consolidated EBITDA margin dropped 392 bps YoY to 6.64%; PAT margin fell 430 bps to 2.29%.

• Order backlog as of September 30, 2025: INR 44,190 million; cash in hand: INR 4,370 million.

Outlook and guidance

• Recovery expected to be slow; full capacity utilization at GenX facility now targeted for FY28 (delayed by a year).

• No formal revenue or EBITDA margin guidance provided; focus remains on process and project engineering.

• Industry awaits further policy directives after India achieves EBP 20; funding and site delays continue to impact project execution.

• Positive policy developments expected in international markets, with new opportunities in SAF, CBG, and bioplastics.

• Focus on brownfield opportunities, lifecycle services, and diversified segments to drive growth.