Praj Industries lifts margin, but remains below Industrials peer median
Consolidated revenue grew +18.60% QoQ while lower tax and other income supported the near-doubling in net profit.
Filed 29 Oct 2026, 16:13 IST · after market close · Praj Industries Ltd (PRAJIND)
Key takeaways
- Consolidated revenue rose +18.60% QoQ as expenses grew +16.16%, lifting operating margin by 1.97 percentage points to 6.17%.
- Net profit increased +99.57% QoQ, helped by an 8.99 percentage-point fall in the tax rate and other income contributing 33.72% of pre-tax profit.
- Praj Industries' 6.17% operating margin was 5.91 percentage points below the median of 61 Industrials peers, ranking eighth from the bottom.
Price around the results
Revenue growth widened the operating spread
Praj Industries' consolidated revenue increased +18.60% QoQ, while expenses rose +16.16%; that difference lifted operating profit by +74.31% and expanded margin by 1.97 percentage points. The sequential direction improved from a 4.20% operating margin in Q1FY27 to 6.17% in Q2FY27.
Tax and other income amplified earnings
Pre-tax profit rose +71.59% QoQ, but net profit grew faster at +99.57% as the tax rate fell 8.99 percentage points to 35.87%. Other income contributed 33.72% of pre-tax profit, so reported earnings received material support beyond operating performance.
Margin remains low against Industrials peers
The 6.17% operating margin was 5.91 percentage points below the 12.08% median for 61 Industrials peers that had reported the same quarter. Praj Industries ranked eighth from the bottom on this measure despite its sequential margin improvement.
Results were filed after market close
The consolidated results were filed at 16:13 IST on 29 October 2026, after the market close. A post-results share-price reaction is therefore not assessed in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹849 cr | ₹716 cr | +18.60% |
| Other income | ₹12 cr | ₹20 cr | -39.04% |
| Expenses | ₹797 cr | ₹686 cr | +16.16% |
| Operating profit | ₹52 cr | ₹30 cr | +74.31% |
| Operating margin (%) | 6.17% | 4.20% | — |
| Interest | ₹3 cr | ₹4 cr | -8.85% |
| Depreciation | ₹25 cr | ₹25 cr | -0.87% |
| Profit before tax | ₹36 cr | ₹21 cr | +71.59% |
| Tax | ₹13 cr | ₹9 cr | +37.29% |
| Net profit | ₹23 cr | ₹12 cr | +99.57% |
| EPS (₹) | ₹1.26 | ₹0.63 | +100.00% |
Operating margin of 6.17% compares with a Industrials sector median of 12.08% across 61 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 6.17% after the Q2FY27 improvement.
- Whether revenue growth remains ahead of expense growth after the +18.60% and +16.16% QoQ increases.
- Whether other income's contribution to pre-tax profit moves below 33.72% and the tax rate remains near 35.87%.