Praj Industries Posts Q3 Net Loss Despite Stable Revenue, Order Intake Up Sequentially

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AuthorAkshat Lakshkar|Published at:
Praj Industries Posts Q3 Net Loss Despite Stable Revenue, Order Intake Up Sequentially
Overview

Praj Industries has reported a net loss of Rs 123.9 million for Q3 FY26, a stark contrast to profits in the previous year, despite revenue remaining stable at Rs 8,414.8 million. While quarterly order intake increased sequentially to Rs 9,140 million, the nine-month period saw significant year-on-year declines in revenue and profit. Management cited external challenges but expressed optimism driven by trade agreements and government focus on new energy sectors, alongside recent breakthrough order wins.

Praj Industries Plunges into Q3 FY26 Net Loss Amidst Profitability Squeeze

Praj Industries has reported a significant financial downturn in its Q3 FY26 results, swinging to a net loss of Rs 123.9 million for the quarter, a stark reversal from a profit of Rs 411.0 million in the same period last year. This represents a YoY decline of -130.15% in profit after tax. Despite revenue from operations remaining relatively stable at Rs 8,414.8 million, a marginal 1.36% dip from Rs 8,530.3 million in Q3 FY25, the company's profitability has been severely impacted.

📉 The Financial Deep Dive

The Numbers:
Revenue from Operations: Rs 8,414.8 million (Q3 FY26) vs. Rs 8,530.3 million (Q3 FY25) - down 1.36% YoY*. Sequentially, revenue was virtually flat (Rs 8,416.3 million in Q2 FY26).
Profit Before Tax (PBT) before exceptional items: Rs 216.1 million (Q3 FY26) vs. Rs 588.2 million (Q3 FY25) - down 63.26% YoY*. Sequentially, PBT fell 27.02% from Rs 296.1 million in Q2 FY26.
Profit After Tax (PAT): Net Loss of Rs 123.9 million (Q3 FY26) vs. Profit of Rs 411.0 million (Q3 FY25) - down 130.15% YoY*. Sequentially, it shifted from a profit of Rs 192.8 million in Q2 FY26 to a loss.

For the nine months ended December 31, 2025 (9M FY26), revenue stood at Rs 23,233.2 million, down 1.90% YoY. PBT declined 71.31% YoY to Rs 608.3 million, and PAT plummeted 93.16% YoY to Rs 122.4 million.

The Quality:
The significant erosion in profitability, evidenced by the sharp YoY and QoQ declines in PBT and the swing to a net loss, indicates severe margin compression. Specific figures for EBITDA, EBIT, margins, and EPS were not provided in the release, preventing a detailed quantitative analysis of profitability drivers.

The Grill:
While no direct analyst "grill" was mentioned, the company's management, led by MD Mr. Ashish Gaikwad, acknowledged a "challenging external environment." The commentary focused on future optimism rather than explaining the current profit squeeze. Guidance on future performance was not quantified, with management expressing confidence in leveraging upcoming trade agreements and government policy focus.

🚩 Risks & Outlook

Specific Risks: The company faces risks associated with executing its growth strategy in a challenging global economic climate. Dependency on new trade agreements and governmental policy execution introduces potential delays or uncertainties. The inability to translate revenue into profit suggests operational cost pressures or project-specific issues not detailed in the release.

The Forward View: Investors will be watching for Praj Industries' ability to stem the profit decline and convert its strong order backlog into profitable revenue streams. The success of new international trade agreements and the government's push in new energy sectors like Biogas, CCUS, and precision fermentation will be key indicators. The company's current financial disclosures lack key metrics like EBITDA, margins, and EPS, hindering a deeper investor assessment. The consolidated order backlog stood at a healthy Rs 44.9 billion as of December 31, 2025, with 66% domestic and 34% international orders, providing a revenue cushion. Recent order wins, including a breakthrough CCUS skid order from a global oil major and a large brewery contract, are positive developments.

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