Target: ₹285
CMP: ₹340.70
Q1-FY27 continues to highlight the gap between Praj Industries’ long-term growth initiatives and its near-term earnings contribution. Consolidated revenue increased 11.8 per cent year on year to ₹720 crore, led by growth in bioenergy and HiPurity, while engineering remains subdued and domestic first-generation ethanol execution continues to be affected by weak greenfield activity, customer funding constraints, and slower backlog conversion. The rise in share of the African Union market exports revenue with lower realisation and margin vs the EU and the Americas. Despite weak operating leverage, PAT was up 117.3 per cent to ₹11.6 crore, supported by higher Other income and lower interest cost.
Order intake rebound to ₹1,000 crore in Q1FY27, up 25.8 per cent, driven by the international markets and newer applications, with exports contributing 43 per cent of Q1 intake and a marquee 800-klpd corn-to-ethanol order from Brazil.
While the company is expanding into newer businesses, these opportunities remain in the nascent stage and are yet to meaningfully offset weakness in the core business. Continued project delays, subdued operating leverage, and ongoing investments in GenX are likely to keep profitability under pressure in the near term. The management’s lack of margin guidance reflects limited visibility on the pace of recovery. We retain Sell with a TP of ₹285 based on 27x FY28E P/E.
Published on August 19, 2026
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