Praj Industries (PRJ IN) – Q3FY26 Result Update – Soft Q3; blurred outlook amid slower domestic 1G – ACCUMULATE
Published on 13 Feb 2026
The company reported a weak quarter, with revenue rising marginally by 1.4% YoY and EBITDA margin contracting by 124bps YoY to 5.6%. Praj’s GenX facility secured a breakthrough order for CCUS skids, marking the start of production at the facility, albeit outside the originally envisaged ETCA pipeline, while management continues to expect FY27 to be the breakeven year for GenX with a targeted order intake of ~Rs5.0bn. Domestically, the slowdown in greenfield ethanol projects continues to weigh on BioEnergy order inflows, even as supportive policy developments in export markets aid international growth, with recent tariff reductions and the India–EU FTA expected to further enhance competitiveness overseas. Meanwhile, Praj’s diversification across CBG, Bio-bitumen, biopolymers, SAF and data centers is gradually gaining traction. The stock is trading at a P/E of 27.6x/20.6x on FY27/28E. We cut our FY27E EPS estimates by -8.0%, factoring in lower domestic demand and execution delays in BioEnergy. We upgrade our rating from ‘Hold’ to ‘Accumulate’ due to recent sharp correction in the stock price valuing the stock at a PE of 26x Sep’27E (same as earlier) arriving at a revised TP of Rs340 (Rs353 earlier).
