Praj Industries Ltd: ₹8,180 Cr Green-Tech Veteran – Now Idling in Neutral?

1. At a Glance

Praj Industries is India’s poster child for bioenergy and sustainable engineering. Founded in 1983, it rode the ethanol boom, diversified into hi-purity systems, critical process equipment, and water/wastewater treatment. FY25 ROCE at 17.9% and ROE at 14.1% are respectable, but Q1 FY26 threw a banana peel: revenue down 8.4% YoY to ₹640 Cr, PAT collapsing 91% YoY to ₹5.34 Cr. At a P/E of 58.4, investors are still pricing it like it’s 2021, not post-boom reality.

2. Introduction

Praj’s narrative reads like a green-tech startup that grew up, went global, and then realised it was still dealing with India’s industrial capex cycles. Its USP? Farm-to-fuel ethanol plants, brewery systems, water treatment, and shiny stainless-steel process equipment.

The hype cycle peaked when government ethanol blending mandates drove orders through the roof. But like all commodity-adjacent capex plays, it’s a rollercoaster — Q1 FY26’s profit slump is proof that order booking and execution timing matter more than speeches on sustainability.

3. Business Model (WTF Do They Even Do?)

Praj sells systems, not just machines:

• BioEnergy – Ethanol plants, compressed biogas systems, SAF (sustainable aviation fuel).
• Praj HiPurity Systems – Pharma-grade water systems, cleanroom skids.
• Critical Process Equipment – Specialised vessels and skids for chemicals and biofuels.
• Water & Wastewater – Industrial effluent treatment and recycling.
• Brewery