Praj Industries Q1 2026 profit surges 4.8% as stock rallies

Praj Industries Ltd. reported a 4.8% year-on-year increase in net profit for the quarter ended June 2025, driven by higher demand for biofuels and industrial solutions.

The company’s stock rose 4.8% in early trading on Wednesday following the earnings release and subsequent investor call. Revenue for the quarter grew 12% to ₹12.4 billion ($148 million), supported by strong order inflows in the ethanol and compressed biogas segments.

Praj Industries’ managing director, Pramod Chaudhari, attributed the growth to policy tailwinds in India’s biofuel sector, including government mandates for ethanol blending in gasoline. He noted that the company’s order book expanded by 18% sequentially, with key contracts secured in the domestic and export markets.

Operating margins expanded to 15.2% from 13.8% in the same period last year, reflecting improved operational efficiency and cost controls. The company maintained its guidance for the full fiscal year, projecting revenue growth of 15-18% and margin expansion of 50-100 basis points.

Analysts at ICICI Securities highlighted the company’s leadership in India’s biofuel transition as a key growth driver. The stock’s recent rally follows a broader trend in the sector, with peers such as Reliance Industries and HPCL also reporting strong performance in biofuel-related businesses.

Praj Industries did not provide specific details on capital expenditure plans during the call but reaffirmed its commitment to scaling production capacity to meet rising demand.