1. Opening Hook
Remember when Praj was the “poster child” of India’s ethanol dream? Well, reality just dialed in. With EBP20 achieved, the biofuel party seems to have hit its hangover stage — fewer greenfield projects, more brownfield “fix what we’ve built” work. The management is trying to keep spirits high, literally and figuratively, by talking SAF (Sustainable Aviation Fuel) and bioplastics — because apparently, jet fuel made from alcohol sounds sexier than flat profit lines.But stay tuned — the story pivots from ethanol glory to GenX growing pains, U.S. tariff tantrums, and an R&D-fueled comeback plan. Things get interesting from here.
2. At a Glance
- Revenue ₹842 crore– Up a meagre 3%, but CFO swears it’s “execution focus,” not Excel manipulation.
- PBT ₹29.6 crore– Down 60%; cost gremlins clearly weren’t on Diwali leave.
- PAT ₹19.3 crore– Vanished faster than investor patience.
- EBITDA Margin– Squeezed tighter than ethanol supplies in monsoon.
- Exports 46%– Apparently foreign markets still like Indian biofuel stories.
- Order Book ₹4,420 crore– Big backlog, small comfort.
- Cash ₹437 crore– The only “green” thing still abundant.
3. Management’s Key Commentary
“India has achieved EBP20; now the industry needs new avenues.”(Translation: We hit the goalpost — and now there’s no ball left to kick.)
“We’re focusing on lifecycle services and brownfield upgrades.”(Read: New projects dried up, so we’re repainting old ones.)
“The U.S. market remains important despite tariff issues.”(Code: We can’t afford to ignore America, even if it ignores us.)
“Our GenX facility’s peak utilization pushed to FY28.”(Basically: The ‘Next-Gen’ plant needs a few more birthdays before it earns its keep 😏.)
“SAF demo plant successfully produced jet fuel.”(First alcohol-to-jet plant ever — finally something to drinkandfly on.)
“CBG pipeline healthy; waiting for gas grid to catch up.”(Translation: Great idea, terrible infrastructure.)
“Vision 2030 stays — only the timeline has taken a coffee break.”(Management optimism clearly renewable, if nothing else.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Sarcastic Take |
|---|---|---|---|---|
| Revenue (₹ Cr) | 842 | 816 | +3% | Growth so flat, even ethanol can’t lift it |
| PBT (₹ Cr) | 29.6 | 74.4 | -60% | Profit blender malfunctioned |
| PAT (₹ Cr) | 19.3 | 53.8 | -64% | Bottom line took a detox |
| H1 Revenue (₹ Cr) | 1,480 | 1,515 | -2% | Half-year, half the glory |
| H1 PAT (₹ Cr) | 24.6 | 138 | -82% | From turbocharged to towed |
| Order Intake (₹ Cr) | 810 | 870 | -7% | Order book dieting for winter |
| Export Mix | 46% | 43% | +3% | Foreigners still buying the story |
| Cash in Hand (₹ Cr) | 437 | 430 | +2% | Safe cushion for risky dreams |
(At least the balance sheet looks like it’s had fewer hangovers than the P&L.)
5. Analyst Questions
Q:“When will GenX break even?”A:“We’ve shifted targets by a year to FY28.”(Translation: Add another candle to that CapEx cake.)
Q:“Any US ethanol orders drying up due to tariffs?”A:“Not really, just ‘taking time’.”(A.k.a. customers ghosting politely.)
Q:“How’s cash flow?”A:“Blocked in contracts; expect reversal soon.”(Like saying “salary delayed but not denied.”)
Q:“Any diesel blending progress?”A:“Trials on isobutanol ongoing.”(Alcohol in diesel — India’s new hybrid experiment.)
Q:“Bioplastics update?”A:“Demo ready, orders not.”(Proof of concept, absence of customers.)
6. Guidance
