Shares of Praj Industries rallied 4.45% to ₹335.82 following the company's strong June quarter performance. According to Business Standard, the stock's 14-day RSI stands at 43.3, indicating a relatively constructive technical setup despite the stock remaining well below its 52-week high. The stock is currently trading above seven out of eight key Simple Moving Averages (SMAs) and is below only its 100-day SMA, suggesting positive momentum in the near term.
The company's Q1FY27 net profit jumped 117.64% to ₹11.60 crore compared with ₹5.33 crore in the corresponding quarter last year, as reported by Business Standard. This performance was 84.13% above the Bloomberg poll's estimate of ₹6.3 crore, demonstrating significant outperformance against analyst expectations. The strong profit growth was primarily driven by exceptional other income, which increased 133% to ₹200 million from the previous year. Revenue from operations also grew 11.81% year-on-year to ₹715.82 crore from ₹640 crore in Q1FY26, with consolidated income from operations reaching ₹715.82 crore. The company's profit before tax (PBT) soared 119.17% YoY to ₹21.04 crore in Q1 FY27.
Despite mixed execution challenges, Praj Industries achieved a significant milestone with ₹10 billion of order inflows (+26% YoY), taking the total order book to a record ₹45.9 billion, according to Prabhudas Lilladher's research report. The order book comprises a growing international and newer technology mix, improving revenue visibility. Domestic 1G ethanol execution remained subdued as capacity additions have largely paused, while customer funding constraints and elongated project cycles delayed backlog conversion and collections. However, the shift towards international orders, lifecycle services and newer biofuels is expected to support margin recovery.
EBITDA stood at ₹30 crore in Q1 FY27, down 4.46% from ₹31.40 crore in Q1 FY26, as reported by Business Standard. Consequently, EBITDA margin contracted to 4.19% from 4.90% in the year-ago period. However, it expanded from the Bloomberg poll's estimate of 3.67%, suggesting the company outperformed analyst expectations on profitability metrics despite margin compression. The margin expansion against estimates was primarily driven by the exceptional other income from insurance claims related to a fire incident at the holding company's Urwade premises in March 2025. Looking ahead, management expects continued growth in brownfield solutions, ENA plants, and international bioenergy markets, especially with new policy support from the GOBARdhan scheme and state policies that are expected to accelerate CBG sector investments and margins.
Key developments during the quarter included securing India's first commercial-scale demonstration plant order for Bio-IBA and signing a long-term framework agreement for precision fabrication and modularization solutions for hyperscale data centers, as reported by Business Standard. Management also received the first order from a leading semiconductor player for ultra-pure water and ZLD solutions. Prabhudas Lilladher notes that GenX is expected to reach EBITDA breakeven by FY27-end, with data-centre traction providing a minimum US$50 million (~₹5 billion) revenue opportunity over 2.5 years across server-hall infrastructure and cooling systems. The company maintains a ₹6.16 billion cash position and approved a 180% final dividend per share. The company also inaugurated a Centre of Excellence for Advanced Bioeconomy to drive research and innovation in biofuels and bioeconomy sectors.
