Praj Industries shares fell sharply by over 7% after the company reported a steep decline in its Q1 FY26 results. As of 9:17 AM, the shares were trading 7.68% down at Rs 411.20.
For the quarter ending June 30, 2025, the consolidated net profit plunged 93.6% year-on-year to just Rs 5.34 crore, a significant drop from Rs 84.18 crore in the same period last year. On a sequential basis, the profit also took a hit, falling from Rs 39.82 crore in the previous quarter.
The company’s revenue from operations came in at Rs 640.20 crore, marking an 8.4% decline compared to Rs 699.14 crore reported in Q1 FY25. This was also lower than the Rs 859.68 crore recorded in the last quarter. Overall, total income for the quarter stood at Rs 648.79 crore, down from Rs 711.13 crore in the year-ago quarter and Rs 871.25 crore in Q4 FY25.
Despite the drop in revenue, total expenses remained relatively stable at Rs 639.18 crore, slightly lower than Rs 632.25 crore a year earlier and down significantly from Rs 812.99 crore in the previous quarter. The cost of materials consumed was Rs 296.54 crore, while employee benefits expense was Rs 81.91 crore. Finance costs were recorded at Rs 5.20 crore, with depreciation and amortisation expenses at Rs 25.21 crore.
Profit before tax experienced a sharp decline, coming down to Rs 9.61 crore compared to Rs 107.04 crore in the same quarter last year and Rs 58.25 crore in Q4 FY25. The company’s total tax expense for the quarter was Rs 4.27 crore, which was also lower than the Rs 22.86 crore paid in Q1 FY25.
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