Praj Industries Limited

Praj Industries reported a consolidated income from operations of ₹8,000 million in Q4 FY25, a 20% decline from ₹10,000 million in Q4 FY24. PBT for the quarter stood at ₹582.51 million, down 41.75% YoY, and PAT was ₹398.169 million, a 56.7% YoY decrease. For the full year FY25, income from operations was ₹32,280 million, down 6.87% from ₹34,662.78 million in FY24, with PBT at ₹2,703 million (down 28.37%) and PAT at ₹2,189 million (down 22.73%). The company noted a 2.3% margin improvement over Q3 FY25 after considering material and direct expenses.

Praj has partnered with Uhde Inventa-Fischer (UIF) to offer end-to-end solutions for PLA production, covering feedstock conversion to lactide and polymerization. This collaboration positions Praj in the biopolymer market. Additionally, a term sheet has been signed with BPCL to develop 10 CBG projects, with regulatory approvals and formal JV formation as the next steps. These initiatives are expected to diversify Praj's offerings and tap into emerging bioeconomy segments.

India has achieved its EBP 20 target ahead of schedule, and Praj is geared to support future blending mandates. The company's technology team is focused on enhancing customer margins through co-products like Distillers corn oil, rice protein, and high protein DDGS, which are gaining traction among ethanol producers. These patented technologies are expected to significantly alter the financial viability of bioenergy projects and differentiate Praj in the market.

Praj is seeing a strong inquiry pipeline from the Americas (Brazil, Argentina, Paraguay) for bioenergy projects, strengthening its presence with local resources. The anticipated 45Z draft notification in the US, expected by October 2025, is poised to create a significant pipeline for low-carbon ethanol opportunities. During Q4 FY25, Praj secured a significant contract from a customer in Paraguay to set up an ethanol plant based on starchy feedstock.

Praj GenX commenced operations at its Mangalore facility in March 2024. The facility was audited and approved by eight key customers, with three already signing long-term framework agreements. Scale-up related expenditure totaling ₹76 crores impacted FY25 PBT. With client approvals secured, GenX is expected to contribute to group revenue and PBT from FY26, with break-even revenue projected at ₹400-450 crores. The Kandla facility is currently blocked for 18 months, shifting focus to Mangalore for new orders.

The CBG segment is witnessing increasing traction, particularly with the BPCL JV and the development of Bio-bitumen technology. Praj achieved a record commissioning of a CBG project in 60 days, demonstrating leadership in the segment. Bio-bitumen, a by-product from waste stream processing, significantly enhances the viability of CBG plants. Mandatory 5% blending in the grid from January next year is expected to further drive demand and infrastructure development for CBG.

A fire incident occurred on March 28, 2025, at the office block of Praj Matrix, the R&D center in Pune. Fortunately, there were no casualties or major damage, and R&D operations were unaffected. The fire-impacted office block area is undergoing refurbishment and is expected to be ready in two months, with no financial loss due to insurance coverage.

The Board of Directors requested Dr. Pramod Chaudhari to accept the role of Executive Chairmanship for the next five years, effective July 1, 2025, which he accepted. He will also serve as Founder, Chairman, and Group Mentor. Additionally, Mr. Parth Chaudhari, son of Dr. Pramod Chaudhari, has been approved as a Non-Executive, Non-Independent Director, effective from the next AGM.