🧠 At a Glance
Praj Industries just announced a series of high-impact pilot projects in its press release dated June 3, 2025:
- ✅ Commissioned a Green Hydrogen plant
- ✅ Developed India’s first demo unit for Sustainable Aviation Fuel (SAF)
- ✅ Commercialized bioplastics tech from agri waste
While the market claps for “green buzzwords,” EduInvesting asks: is this tech or just textbook PR?
🧪 What Did Praj Actually Announce?
- Green Hydrogen Plant Commissioned
- Built under the MNRE’s R&D funding
- Located at Praj Matrix, Pune
- Electrolyser tech not disclosed (own or third-party?)
- Sustainable Aviation Fuel (SAF) Pilot Unit
- Using alcohol-to-jet (ATJ) technology
- Could help Indian airlines meet 1% SAF blending mandates
- Bioplastics from Agri Waste
- New pilot plant using cellulosic biomass
- Produces PHA-based biodegradable polymers
🧬 Why This Matters (If It Works)
India’s clean energy transition needs:
- Domestic green hydrogen players
- SAF for airlines facing EU/ICAO mandates
- Bioplastics to replace ₹5 chhota packets and cut plastic imports
Praj is trying to verticalize bioeconomy tech — not just ethanol, but the whole renewable pie. If this succeeds, they go from “sugar mill contractor” to sustainable materials innovator.
🏢 About Praj Industries
- NSE: PRAJIND
- Sector: Bioenergy, Engineering, Industrial Biotech
- Known for ethanol plant design, but now moving into:
- Biogas
- Bioplastics
- Biofuels for aviation
📊 Financial Snapshot (FY24)
| Metric | Value |
|---|---|
| Revenue | ₹3,687 crore |
| Net Profit | ₹251 crore |
| EBITDA Margin | ~10.5% |
| Order Book | ₹4,600+ crore |
| R&D Spend | ~₹60 crore |
🔮 Edu Fair Value Estimate
Assumptions:
- FY26E EPS = ₹26
- Market willing to pay 22–25x due to tech angle
🎯 FV Range = ₹570–₹650
CMP as per last update: ₹500
Upside: Decent if tech verticals convert to revenue.
🧠 EduInvesting Take
“Praj is evolving from ethanol contractor to biotech creator. But R&D doesn’t pay bills — execution does.”
What we love:
- They’re not waiting for ethanol subsidies forever
- Green hydrogen, SAF, and bioplastics are future-proof bets
- India needs domestic players in these
What we hate:
- These are pilot projects, not revenue drivers yet
- Green hydrogen = capex heavy, low margin until scale
- SAF demand is still in policy limbo
So yes, this could be a “mini Tesla of bioenergy.” Or just India’s most overqualified demo lab.
🧨 Red Flags
- No revenue forecast from these verticals
- Tech may require long gestation
- Reliance New Energy & Waaree entering same space
- Green hydrogen electrolyser supply not clarified (imported?)
🧪 TL;DR
| 🚀 What’s New | 💥 What It Means |
|---|---|
| Green H2, SAF, Bioplastics | Praj is no longer just ethanol |
| Execution? | Still early stage |
| Market Impact | Moderate — long gestation |
| Edu Verdict | Bold bets. Worth watching. Too early to bet big. |
This isn’t just a pivot. It’s Praj going full biotech-industrial.
Now, will investors reward R&D? Or will the market say: “come back when it earns money”?
Author: Prashant Marathe
Date: June 4, 2025
Tags: Praj Industries, green hydrogen India, sustainable aviation fuel, bioplastics, ethanol, Indian biotech companies, Praj Matrix, bioeconomy startups, future of fuel
