Praj Industries’ share price dropped over 9% on Tuesday, August 12, following the release of its April-June quarter results after market hours on Monday. The company reported a net profit of ₹5.34 crore for Q1 FY26, a sharp fall of more than 90% from ₹84.18 crore in the same quarter last year, disappointing investors and triggering the steep decline.
Sequentially, net profit also fell significantly from ₹39.82 crore in the January-March 2025 quarter. Management attributed the drop to cautiousness in the domestic ethanol market after achieving the 20% ethanol blending program (EBP) target and upcoming blending mandates. Geopolitical tensions and U.S. trade policies also delayed capital investments, impacting performance.
Revenue from operations stood at ₹640.2 crore, down from ₹699.14 crore a year ago and ₹859.69 crore the previous quarter. Profit before tax, excluding exceptional items, was ₹9.61 crore, versus ₹78.88 crore year-on-year and ₹58.25 crore sequentially. On a positive note, order intake for the quarter was ₹795 crore, indicating a healthy revenue pipeline.
Despite these challenges, MD Ashish Gaikwad affirmed confidence in Praj’s strong fundamentals and long-term growth plans. The stock has delivered 538% returns over five years, despite the recent decline.