Praj Industries posts ₹23 cr profit; invests ₹100 cr in BPCL

Praj Industries reported a steady Q2 FY27 performance with a ₹23 crore profit (up 20% YoY) and approved a ₹100 crore investment in a joint venture with BPCL to set up Compressed Bio-Gas (CBG) plants across India. Brokerages maintain a positive long-term outlook despite short-term ethanol project delays. 🧾 Key Financial Highlights (Q2 FY27) Metric Q2 FY27 YoY Change Revenue ₹849 crore +1% EBITDA ₹52 crore +74% QoQ PAT (Profit After Tax) ₹23 crore +20% YoY Order Backlog ₹4,455 crore Stable Bioenergy Share of Orders 75% — Standalone Income: ₹6,741.52 million Consolidated Income: ₹8,611.67 million Consolidated PAT: ₹231.67 million Audit Status: Reviewed by MSKA & Associates LLP ⚙️ Strategic Developments BPCL Joint Venture: Investment up to ₹100 crore approved on Oct 29, 2026. Focus: Establishing 8–10 CBG plants nationwide (total project cost ₹800–1,000 crore). Aligns with India’s green energy and sustainable fuel goals. GenX Business Expansion: Qualified with 18 global customers. Active projects in oil & gas, fertilisers, and LNG sectors. Bio-IBA Plant: India’s first plant under construction, expected completion by end of 2026. 🌍 Market Outlook Brokerage View: Prabhudas Lilladher maintains a Buy rating with a target price of ₹353, citing strong international pipeline and diversification into data centres and biofuels. Despite weak domestic ethanol execution, international projects worth ₹10 billion and data centre opportunities of ₹5–6 billion provide medium-term growth visibility. Stock Performance: Current price around ₹241.70, down 21% in the last month. Valuation at 21× FY28E EPS, with long-term revenue target of ₹10,000 crore by FY30. ⚠️ Risks & Considerations Domestic ethanol project delays due to funding constraints. Execution risk in converting backlog to revenue. Policy shifts in renewable energy could affect timelines.