Praj Industries (PRJ IN) – Q1FY27 Result Update – Mixed Q1; GenX orders to support margin recovery – Upgrade to ‘BUY’
Published on 15 Aug 2026
Praj Industries (PRAJ) reported a mixed Q1FY27 performance with revenue increasing ~11.8% YoY and EBITDA margin contracting 137bps YoY on lower volumes and an unfavourable mix. 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. Furthermore, Raw-material volatility, supply-chain disruptions and geopolitical uncertainties also weighed on execution and order conversion. However, ~Rs10bn of order inflows (+26% YoY) took the order book to a record ~Rs45.9bn, with a growing international and newer-technology mix improving revenue visibility. We upgrade our rating from ‘Accumulate’ to ‘Buy’ given the recent correction in the stock price and beginning of Genx orders, valuing the stock at a PE of 26x Mar’28E (same as earlier) arriving at a TP of Rs390 (TP of Rs389 earlier).
