Praj Industries Q2 FY27 results: net profit up 20.2% to ₹23.17 crore, revenue up 0.9%

How did Praj Industries perform in Q2 FY27?

Praj Industries reported consolidated revenue of ₹848.99 crore for Q2 FY27, against ₹841.63 crore in Q2 FY26 and ₹715.82 crore in Q1 FY27. EBITDA was ₹52.38 crore, compared with ₹55.84 crore and ₹30.05 crore, respectively. The EBITDA margin was 6.2%, down 0.4 percentage points year on year but up 2.0 percentage points from the previous quarter.

Net profit was ₹23.17 crore, compared with ₹19.28 crore in Q2 FY26 and ₹11.61 crore in Q1 FY27. Basic EPS was ₹1.26, compared with ₹1.05 and ₹0.63. On the standalone basis, revenue was ₹651.87 crore and net profit was ₹45.43 crore; the company’s filed presentation reported standalone Q2 FY27 operating income of ₹6,519 million and net profit of ₹454 million.

What changed in Praj Industries' costs and profit?

Cost of materials was ₹438.86 crore in Q2 FY27, up ₹86.99 crore from ₹351.87 crore a year earlier, while employee cost was ₹89.17 crore, up ₹2.56 crore. Finance costs fell ₹1.57 crore to ₹3.40 crore and depreciation fell ₹1.68 crore to ₹25.03 crore. Other expenses were ₹225.85 crore, lower by ₹89.53 crore than the year-ago quarter, and total expenses were ₹825.04 crore, higher by ₹7.57 crore.

Other income was ₹12.18 crore, up ₹6.74 crore from ₹5.44 crore in Q2 FY26. There was no exceptional item. Profit before tax rose ₹6.51 crore to ₹36.12 crore, while tax expense increased ₹2.63 crore to ₹12.96 crore, resulting in net profit of ₹23.17 crore, up ₹3.89 crore year on year. The filing does not state a reason for the change in other expenses.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹1,564.81 crore, up ₹82.97 crore or 5.6% from ₹1,481.84 crore in H1 FY26. Total income rose 6.8% to ₹1,596.97 crore from ₹1,495.87 crore. Profit before tax increased 45.8% to ₹57.17 crore from ₹39.22 crore.

Net profit for the first half was ₹34.77 crore, compared with ₹24.62 crore in H1 FY26, an increase of ₹10.15 crore or 41.2%. EPS was ₹1.26, compared with ₹1.34 a year earlier.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,973.4 crore, compared with ₹3,055.89 crore at 31 March 2026, while total equity was ₹1,278.26 crore against ₹1,309.25 crore. Borrowings were ₹0.00 crore at both dates. Cash was ₹152.52 crore, compared with ₹142.37 crore; inventories were ₹288.05 crore against ₹266.11 crore, trade receivables were ₹589.49 crore against ₹558.68 crore, and trade payables were ₹528.13 crore against ₹586.12 crore.

H1 FY27 operating cash flow was an outflow of ₹8.24 crore, compared with an outflow of ₹4.54 crore in H1 FY26. Investing cash flow was an inflow of ₹112.34 crore, compared with ₹222.68 crore, while financing cash flow was an outflow of ₹99.7 crore against ₹146.66 crore. Capital expenditure was ₹14.64 crore, compared with ₹25.76 crore in the year-earlier period.

How has Praj Industries done over the last 8 quarters?

Revenue reached ₹848.99 crore in Q2 FY27, compared with the recent low of ₹640.2 crore in Q1 FY26 and a high of ₹859.68 crore in Q4 FY25. The latest quarter showed a recovery from ₹715.82 crore in Q1 FY27, and revenue rose year on year in each of the last two quarters. EBITDA margin was 6.2%, above 2.8% in Q4 FY26 and 4.2% in Q1 FY27, but below 8.6% in Q4 FY25.

Net profit was ₹23.17 crore in Q2 FY27, compared with ₹11.61 crore in Q1 FY27 and a recent loss of ₹12.39 crore in Q3 FY26. Profit rose year on year in each of the last two quarters, moving above the Q2 FY26 level of ₹19.28 crore.

What else did the company announce?

On 29 October 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The results had been reviewed by the Audit Committee, and the statutory auditors issued a limited review report.

The company also filed that Dr. Shridhar Shukla resigned as an independent director, citing pre-occupation and other personal commitments. The board proposed appointing Mr. Vijay Ratnaparkhe as an independent director for five years, from 29 October 2026 to 28 October 2031, subject to shareholder approval by special resolution. No dividend or fund-raise announcement is included in the same-day filings.

What did Praj Industries' management say?

Management maintained the FY27 GenX order-booking outlook and said H2 FY27 order bookings were expected to improve through CBG, international bioenergy and GenX opportunities. GenX orders were expected to begin trickling from Q3 FY27, with revenue contribution visible from Q3-Q4 FY27. Management also maintained the 12-month outlook of approximately ₹500-600 crore of GenX revenue and breakeven.

Management expected FY27 GenX costs, including interest and depreciation, at approximately ₹140-150 crore and described the current roughly 6.2% quarterly EBITDA margin as a floor. The company planned a 50:50 BPCL CBG joint venture with up to ₹100 crore of investment, targeting eight to ten plants. Management also cited an international bioenergy pipeline of approximately ₹1,000 crore over the next few quarters.

Management identified domestic greenfield funding and backlog conversion as key execution risks. It said ethanol supply-demand imbalance was delaying backlog conversion into revenue, while CBG economics required round-the-year feedstock, gas evacuation and assured offtake. Management also retained the FY30 ambition of approximately ₹10,000 crore revenue and roughly 50% exports, while noting that this could be slightly delayed.

How did Praj Industries shares react?

After the filing, the stock was down 0.4% after five minutes, 1.0% after 15 minutes and 1.3% after 30 minutes. The reaction-day close was down 4.8% from the previous close. By the next day’s close, the stock was up 6.8% from the pre-results close, compared with a 0.5% fall for the Industrial Products median and a 1.1% fall for the Nifty Microcap 250.

On the reaction day, Praj Industries underperformed the Industrial Products median by 2.7 percentage points and the Nifty Microcap 250 by 2.5 percentage points. By the next day’s close, it exceeded the sector median by 7.3 percentage points. Earlier results-day moves included declines of 0.6% on 21 July 2026, 7.6% on 28 May 2026, 6.3% on 12 February 2026 and 1.1% on 5 November 2025.

How did other Industrial Products companies do?

Thirty-six other Industrial Products companies that had filed for the quarter were compared. Their median revenue growth was 35.8%, compared with Praj Industries’ 0.9% consolidated revenue growth; 7 peers grew more slowly than Praj Industries and 29 grew faster.

Twenty-two of the peers reported higher profit, while 30 were compared for profit performance.