Praj Industries Limited (PRAJIND)
Micro CapIndustrials stocks · Micro cap · NSE
Praj Industries Ltd. is a biotechnology and engineering company offering sustainable solutions for bioenergy, high purity water, critical process equipment, breweries, and industrial wastewater treatment. It has 1000+ references in 100+ countries, 5 manufacturing facilities, and is net debt-free.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 57/100Rev +12% YoY · PAT +140% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹716 Cr | +11.9% | -15.3% |
| EBITDA | ₹30 Cr | -3.2% | +30.4% |
| Operating margin | 4.2% | -70 bps | +140 bps |
| PAT | ₹12 Cr | +140.0% | +0.0% |
| PAT margin | 1.7% | +90 bps | +26 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Praj Industries reported a significant decline in FY26 operational income to INR 31,679 Mn, down from INR 32,280 Mn in FY25. EBITDA plummeted to INR 1,518 Mn (4.79% margin) from INR 3,145 Mn (9.74% margin) in FY25, with PAT falling to INR 238 Mn (0.75% margin).
The sharp decline in operational income, EBITDA, and PAT in FY26, coupled with a significant drop in margins, indicates considerable stress on the company's profitability. While the order book remains substantial, the recent financial performance raises concerns about execution and cost management.
FY26 Revenue Break Up (%)
Latest issuer-disclosed distribution across 3 reported categories.
Domestic Demand for Ethanol beyond EBP 20
The Bureau of Indian Standards notified fuel specifications for E22, E25, E27, E30, E85, and E100 petrol blends.
Compressed Bio-Gas (CBG) Blending Obligation
CBO starting from 1% in Fiscal Year 2025-26 and increasing to 5% by 2028-29.
Sustainable Aviation Fuel (SAF)
1% SAF blending requirement is equivalent to additional demand of 28 crore liters of ethanol.
Increasing Demand for Modularization
Growing investments in traditional energy like O&G, LNG and new opportunities from Data centers segment.
Government Policy Support for Biofuels
CBO starting from 1% in FY26, increasing to 5% by FY29. Bio 3E Policy envisages INR 10,000 Crore investment.
Expanding Ethanol Blending Mandates
India's EBP beyond E20, USA to go for E15, and increasing ethanol blending mandates across Americas and South East Asia.
Global Biofuels Alliance
Global Biofuels Alliance aims to increase biofuels penetration in newer markets.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The financial results are presented annually (FY22-FY26), making year-over-year comparison most relevant for assessing overall performance trends and profitability shifts. Quarterly order book data also shows sequential changes.
EBITDA Margins
FY26 EBITDA Margins declined to 4.79% from 9.74% in FY25.
Global Ethanol Production Market Share
Approximately 10% global ethanol production market share (excluding China).
ROCE
FY26 ROCE was 7%, down from 16% in FY25.
Focus on Bio-MobilityTM
Bio-MobilityTM is a platform of technologies for producing carbon neutral transportation fuel across all modes of mobility.
Strategic Partnerships for Future Fuels
MOU with Axens for SAF projects, MOU with IOCL for SAF, Ethanol & CBG, and MOU with BPCL for CBG JV.
Innovation in Renewable Chemicals & Materials
Developing technologies for bio-based RCM, including India's first Demo Facility for Biopolymers (PLA technology).
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Operational Income | INR 31,679 Mn (FY26) | Reversal of declining trend and growth momentum. |
| EBITDA Margin | 4.79% (FY26) | Improvement in profitability and cost management. |
| Order Book | INR 43,050 Mn (Q4-FY26) | Conversion of order book into revenue and sustained order intake growth. |
| Net Debt to Equity | (0.16)x (FY26) | Maintenance of net debt-free status and efficient capital deployment. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +3.7% / mo · MACD −
Technical chart
PRAJINDdaily · 1Y · AUTO+9.6%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 48. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~3.6% over last month) — short-term momentum positive.
- RSI(14) at 48 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 22% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 24 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 24 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.3%.
- Cash flow contributes 8/10 to the score.
- Balance sheet contributes 8/15 to the score.
Main drags
- Fair-value margin of safety is negative at -9978.8%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 35th percentile within Industrials. Main check: results consistency is weak at 27/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 35th pctile, median 68 · Micro: 21st pctile, median 73
93 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3.3%.
- ▸12 years of positive FCF.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 6.1%.
- ▸ROE is low at 1.5%.
- ▸ROCE trend is -11.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 122.00
- P/B
- 4.72
- EV/EBITDA
- 24.77
- Market Cap
- 6168.00Cr
Profitability
- ROE
- 1.48%
- ROCE
- 6.12%
- ROA
- 0.98%
- Dividend Y
- 1.07%
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- -24.00%
- Revenue 3Y
- -4.00%
- EPS 3Y
- -56.00%
Balance Sheet
- Debt/Equity
- 0.13
- Interest Coverage
- 7.89×
- Altman Z
- 4.08
- Book Value
- 71.20
Cash Flow
- FCF Yield
- 3.31%
- FCF Positive Y
- 12/5
- OCF
- 200.00 Cr
- EPS TTM
- 1.64
Shareholding
- Promoter Hold
- 32.81%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 41%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.