The shares of the bio-energy solutions provider fell up to 7 percent after the company’s net profit and revenue plummeted by 56 percent and 16 percent YoY, respectively, in Q4.
Price Movement
With a market capitalization of Rs 8,708.15 crore, the shares of Praj Industries Ltd were trading at Rs 473.75 per share, decreasing around 6.72 percent as compared to the previous closing of Rs 507.90 apiece.
Matter explanation
The shares of Praj Industries Ltd have seen bearish movement after reporting negative results in Q4FY25, Revenue increased by 1 percent on a quarter-on-quarter basis from Rs 853 crore in Q3FY25 to Rs 860 crore in Q4FY25. Further, revenue plummeted by 16 percent year on year, from Rs 1,019 crore in Q4FY24 to Rs 860 crore in Q4FY25.
The company’s net profit decreased by 2.4 percent on a quarter-on-quarter basis, from Rs. 41 crore in Q3FY25 to Rs. 40 crore in Q4FY25. Further, net profit magnified significantly by 56 percent year on year from Rs 92 crore in Q4FY24 to Rs 40 crore in Q4FY25.
The company posted a FY24- 25 performance, with revenue declining by 6.8 percent from Rs 3,466 crore to Rs 3,228 crore. Net profit decreased by 23 percent, from Rs 283 crore to Rs 219 crore, reflecting weak profitability over the previous financial year.
Order Book
According to the latest filing, the company’s international order book rose to 40%, driven by strong global demand. Domestically, its bioenergy segment advances under the EBP 20 program, aiming for 18% ethanol blending in 2025. Value-added products like bio-bitumen, corn oil, and rice protein are progressing, alongside a major ENA plant contract in Tanzania.
Also read: Is Bajaj Finance a good buy after Q4 results? Here’s What Analysts Say
Prominent investor
According to the latest filing, a prominent fii, Goldman Sachs, holds 39,48,805 equity shares, which is equivalent to 2.15 percent in the company.
Business Update
The Mangalore engineering facility, developed with over Rs 200 crore in capex and Rs 80 crore in operating expenses year-to-date, is now fully ready. Revenue contribution is expected from H2 FY26, with the order book building beginning this quarter to support future growth.
Future Outlook
The management is optimistic about long-term growth, driven by a strong international bioenergy inquiry pipeline, especially in the USA, Brazil, Argentina, and Panama. The SAF market, favoring the ATJ pathway, is set to expand. Margin improvement is expected through tech innovation and co-product development as sales mix normalizes.
Company Profile
Praj Industries Limited is an India-based biotechnology company. The Company’s business lines include BioEnergy, Praj HiPurity Systems (PHS), Critical Process Equipment & Skids (CPES), Wastewater Treatment, and Brewery & Beverages.
Written by Abhishek Singh
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