1. At a Glance
If Prakash Industries Ltd were a Bollywood movie, it would have everything — drama, suspense, legal twists, and a hero trying to rebuild reputation while juggling molten steel and hot coal. The company closed Q2FY26 with Sales of ₹723 crore and PAT of ₹62 crore, a steep dip of -32.8% YoY in sales and -31.9% YoY in profit. But don’t be fooled — this iron man of Chhattisgarh is finally firing up its own coal mine after years of waiting, which could flip the narrative in FY26 like a plot twist in a Rajkumar Hirani film.
At ₹133 per share, the stock sits 30% below its 52-week high, with a market cap of ₹2,386 crore and a P/E ratio of 7.28 — practically a discount sale on the steel street. The ROE and ROCE both hover at 11.2%, proving the company is decently efficient, while debt-to-equity is a chill 0.10, meaning Prakash isn’t living on borrowed gas.
The headline: Coal mines finally operational, CFO newly appointed, and profits cooling faster than a TMT bar in monsoon season.
2. Introduction
Prakash Industries has lived many lives — from being a rising steel producer to fighting court cases that could give “Suits” a spin-off idea. Founded decades ago and headquartered in Haryana, this is one of India’s more old-school steelmakers, the kind that believes in doing everything in-house — from mining iron ore to generating its own electricity. Think of it as the Indian version of “do-it-yourself capitalism.”
Q2FY26 might look like a dull quarter with falling sales, but hidden beneath those hot furnaces is something shiny — the Bhaskarpara Coal Mine, now operational. This single mine has been the company’s dream project for years, and now, as dispatches begin, the cost structure could finally turn attractive enough to melt investor skepticism.
Yet, Prakash isn’t all sunshine and rolling steel coils. Its dependence on the top 10 customers for ~71% of total income leaves it as concentrated as a college canteen’s coffee. Add in the legal roller coaster — ED attachments, High Court orders, and quashed decisions — and you have a company that’s basically a courtroom thriller in PPE gear.
Still, with 245 MW of captive power, 1.25 MnTPA of billet capacity, and now its own coal mine, Prakash seems ready to strike back. The question is — will investors have the patience to wait for the next act?
3. Business Model – WTF Do They Even Do?
Let’s simplify the chaos. Prakash Industries is basically a steel and power hybrid — a muscular machine that melts iron ore, adds some ferro alloys, spins out billets, and turns them into shiny wire rods, HB wires, and TMT bars that go into construction, automotive, and heavy industries.
Their steel is made the desi way — vertically integrated. Meaning, they mine their own ore (Odisha + Chhattisgarh), generate their own power (245 MW worth of muscle), and sell steel products across India. That’s right — this company doesn’t like middlemen. They’d rather burn their own coal than pay someone else.
They also own a 6 MW windmill in Tamil Nadu — because apparently, even steel companies want to feel a bit green for CSR photos.
But the real “a-ha!” moment is their Bhaskarpara Coal Mine in Chhattisgarh, which became operational early 2025. For years, Prakash had to buy coal from others, making
costs unpredictable. Now, they’ll dig their own energy source. Imagine going from renting your gas cylinder to owning your own LPG company.
Of course, there’s also a risk. The company spent ₹500 crore in capex, with ₹400 crore already sunk into developing the mine. So, while investors wait for payback, Prakash will have to prove that all this digging leads to profits — not a fiscal pothole.
4. Financials Overview
| Metric | Latest Qtr (Sep’25) | Same Qtr Last Yr (Sep’24) | Previous Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹723 Cr | ₹1,077 Cr | ₹1,037 Cr | -32.8% | -30.2% |
| EBITDA | ₹108 Cr | ₹131 Cr | ₹138 Cr | -17.5% | -21.7% |
| PAT | ₹62 Cr | ₹90 Cr | ₹91 Cr | -31.9% | -31.8% |
| EPS (₹) | 3.44 | 5.05 | 5.10 | -31.9% | -32.5% |
Commentary:
If steel had a cooling period, Q2FY26 would be it. Revenue melted faster than butter on bhature, and profit shrank like a wool sweater in hot wash. With EPS at ₹3.44 this quarter, the annualized EPS comes to roughly ₹13.76 — giving a P/E of about 9.7 (a bit above the reported 7.28 due to fluctuation in quarterly performance).
But hey, EBITDA margin held up decently at 15%, so while volumes may have dipped, cost control hasn’t gone out of the furnace.
5. Valuation Discussion – Fair Value Range
Let’s break this down like a CA explaining to a cousin in real estate:
a. P/E Method:
Industry P/E ≈ 22.0
Prakash’s P/E ≈ 7.3
EPS (TTM) = ₹18.3
So, fair range (using a conservative 10x–14x multiple):
₹183 to ₹256 per share
b. EV/EBITDA Method:
EV = ₹2,480 Cr
EBITDA (TTM) = ₹520 Cr
EV/EBITDA = 4.7x (current)
Industry average ≈ 7–8x
So, fair EV range = ₹3,640–₹4,160 Cr
Corresponding equity value range = ₹3,540–₹4,060 Cr → ₹197–₹225 per share
c. DCF Snapshot:
Assuming conservative 6% growth and 12% discount rate, intrinsic value range falls between ₹180–₹210 per share.
💡 Fair Value Range (Educational Only): ₹180 – ₹230 per share.
Disclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Q2FY26 brought more spice than steel prices. The company proudly reported ₹723 crore in sales and ₹62 crore PAT, but the real story is elsewhere.
- New CFO Alert: Prashant Gupta appointed effective 1st Dec 2025. The man probably deserves hazard pay for entering a furnace of numbers right when profits dip 32%.
- Coal Mine
