Praj Industries (PRAJIND) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw steady operational performance amid a challenging environment, with positive momentum expected from favorable policy and trade developments.

• Government policies, including tariff reductions and incentives for biofuels, carbon capture, and biopharma, are expected to open new growth avenues.

• The company is focusing on brownfield projects and operational efficiency in BioEnergy, with international markets showing increased biofuel mandates.

• Significant orders were secured in Engineering (brewery, ZLD), HiPurity (precision fermentation), and a breakthrough CCUS order from a global oil major.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved by the Board, with no material misstatements identified.

Financial highlights

• Q3 FY26 consolidated income from operations was INR 8.41 billion, flat sequentially and down 1.3% YoY; nine-month income was INR 23.23 billion, down 1.9% YoY.

• Q3 FY26 consolidated net loss was INR 124 million, mainly due to a one-time labour code provision; nine-month net profit was INR 122 million.

• EBITDA margin for Q3 FY26 was 5.62%, down 290 bps YoY; nine-month EBITDA margin was 5.79%, down 480 bps YoY.

• Export revenues accounted for 34% of Q3 revenue; cash in hand at quarter-end was INR 5.9 billion.

• Order intake for Q3 FY26 was INR 9.14 billion; order backlog at quarter-end was INR 44.91 billion.

Outlook and guidance

• Expectation of continued subdued greenfield BioEnergy orders due to demand-supply imbalance, with focus shifting to brownfield and efficiency projects.

• Engineering and HiPurity segments are expected to drive order intake and revenue conversion in the near term.

• Margin improvement anticipated as fixed cost absorption at new facilities increases and order mix shifts.

• Data centers and new industrial segments (battery, solar, semiconductors) are emerging as growth opportunities.

• Management is monitoring the impact of new labour codes and expects no material future impact.