Praj Industries (PRJ IN) – Management Meet Update – GenX scaleup to anchor growth momentum – Accumulate
Published on 24 Mar 2026
We recently interacted with the management of Praj Industries (PRJ) at a conference. The management expects FY27 to be a recovery year led by improved order inflows and better utilization of the GenX facility. The GenX facility is expected to break even at revenue of INR4-5bn, despite elevated fixed costs. The 1G ethanol business is undergoing a structural shift from greenfield to brownfield opportunities and services-led revenue, while exports are expected to support growth. The CBG segment has a healthy pipeline (INR10bn), though execution remains constrained by feedstock and offtake challenges; the recent policy support for CBG blending into gas pipelines improves long-term visibility. SAF is emerging as a key global opportunity, with PRJ focusing on high-value engineering mandates, while Iso-butanol remains an emerging alternative fuel. The services segment is gaining traction as a stable, annuity-like revenue stream. The stock is trading at P/E of 28.2x/21.0x on FY27/28E. We maintain our ‘Accumulate’ rating on the stock valuing the stock at P/E of 26x Sep’27E (same as earlier) arriving at TP of INR340 (same as earlier).
