Synopsis

Praj Industries shares surged 6.5% after Q1FY27 net profit more than doubled year-on-year to Rs 12 crore, while revenue rose 12% to Rs 716 crore. The company reported Rs 1,000 crore in order intake and ended the quarter with an order backlog of Rs 4,589 crore, providing strong execution visibility.

Shares of Praj Industries surged 6.50% to Rs 342.45 in Friday’s trading session after the company reported strong performance for the June quarter, with consolidated net profit more than doubling year-on-year.

The company’s Q1FY27 net profit jumped 117% to Rs 12 crore, compared with Rs 5 crore in the corresponding quarter last year. Revenue from operations also grew 12% year-on-year to Rs 716 crore, from Rs 640 crore in Q1FY26.

Praj Industries’ Bioenergy segment continued to account for the lion’s share of total segmental revenue, contributing 66%. Engineering accounted for 22%, while HiPurity contributed the remaining 12%.

Geographically, 75% of Q1FY27 revenue came from the domestic market, while exports contributed 25%.

The company also reported a healthy order intake of Rs 1,000 crore during the quarter. Exports accounted for 43% of order intake, while domestic orders contributed 57%.

More importantly, Praj Industries ended the quarter with a sizeable order backlog of Rs 4,589 crore, providing visibility for future execution.

Commenting on the performance, Ashish Gaikwad, Managing Director, Praj Industries, said the company continued to make progress on several long-term growth opportunities despite an uncertain external business environment.

Key developments during the quarter included securing a Bio-IBA order for the country’s first commercial-scale demonstration plant, signing a long-term framework agreement for precision fabrication and modularisation solutions for hyperscale data centres, and receiving its first order from a leading semiconductor player for ultra-pure water and zero-liquid-discharge (ZLD) solutions.

Gaikwad said the company expects to build on this momentum through the rest of the financial year and deliver improved performance.

Following Friday’s rally, Praj Industries has a market capitalisation of around Rs 5,910 crore. The stock’s 52-week high stands at Rs 433.

On the technical front, the stock’s 14-day RSI stands at 43.3. An RSI below 30 is generally considered oversold, while a reading above 70 indicates an overbought zone. The stock is currently trading above seven out of eight key Simple Moving Averages (SMAs) and is below only its 100-day SMA, indicating a relatively constructive technical setup despite the stock remaining well below its 52-week high.

Institutional ownership also showed a positive trend in the June 2026 quarter. Foreign Institutional Investors (FIIs) marginally increased their stake in Praj Industries to 17.75% from 17.74% in the previous quarter. More notably, mutual fund holdings rose to 13.52% from 12.25%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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