Praj Industries Q1 FY27 Results (NSE: PRAJIND)
Signal: Margin expansion
The read
The margin trend has stabilised after four consecutive quarters of consolidated contraction: EBITDA margin recovered to 7% and EBITDA grew 25.0% YoY on revenue growth of 11.8%, but the quality of the ₹11.61 crore PAT rebound is weak because other income of ₹19.98 crore represented 94.9% of PBT and consolidated profit remained below standalone profit of ₹25.44 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹715.82 Cr | 11.8% | -15.2% |
| EBIT | ₹24.78 Cr | 67.4% | |
| Net profit | ₹11.61 Cr | 117.4% | |
| EPS | ₹0.63 | 117.2% | |
| EBIT margin | 7% |
P&L walk
Revenue increased to ₹715.82 crore, +11.8% YoY, while EBITDA rose 25.0% to ₹50.03 crore and margin reached 7%; EBIT grew 67.4% to ₹24.78 crore, but PAT of ₹11.61 crore was supported by other income equal to 94.9% of PBT.
Segments
Bio Energy was the largest revenue contributor at ₹4740 Mn or 66% of Q1 revenue, ahead of Engineering at ₹1570 Mn and HiPurity at ₹850 Mn; the material standalone-consolidated gap, with standalone PAT of ₹25.44 crore versus consolidated PAT of ₹11.61 crore, indicates subsidiaries dragged group profitability.
Key positives
- Consolidated revenue increased 11.8% YoY to ₹715.82 crore, the strongest growth after the recent weak revenue trend.
- Order intake reached ₹10,000 Mn in Q1FY27 and order backlog increased to ₹45,890 Mn, providing visible execution support.
- Consolidated EBITDA grew 25.0% YoY to ₹50.03 crore and margin reached 7%, a recovery from the recent 2.8%-4.9% margin range.
- Praj GenX signed an exclusive framework agreement representing an approximately ₹500 crore opportunity over the next two and a half years in hyperscale data-centre infrastructure components.
- Standalone EBITDA increased 20.3% YoY to ₹49.59 crore and standalone margin reached 9.2%, showing stronger parent-level execution.
Key concerns
- Consolidated PAT of ₹11.61 crore was supported by other income of ₹19.98 crore, equal to 94.9% of PBT; operating profit conversion remains weak.
- Standalone revenue grew only 5.7% YoY to ₹539.25 crore and declined 22.2% sequentially, while consolidated revenue declined 15.2% sequentially.
- The consolidated EBITDA margin of 7% remains below the 9.0%-13.0% range seen in Q2FY24-Q1FY25 despite the current-quarter recovery.
Earnings quality: includes non-operating other income
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