Praj Industries share price (NSE: PRAJIND) climbed for the second straight session on December 16, rising over 7% to around ₹357.80. This took the total gain over the last 2 trading days to nearly 18%, pushing the stock to a two-month high.
The recent bounce has brought some relief to investors after months of sharp selling pressure that wiped out a large part of the company’s market value.
Despite the short-term recovery, Praj Industries’ share price remains deeply in the red for 2025. The stock is down about 57% year-to-date, making it the company’s worst annual performance since 2008, when shares had fallen over 70%.
The decline comes after a strong multi-year rally. From 2020 onwards, the stock had delivered massive gains, rising nearly 1,900% over 4 years before peaking near ₹875 earlier this year.
The rally lost momentum in early 2025 due to weak financial performance and challenges in Praj’s core BioEnergy business. Demand for new ethanol plants slowed after India achieved the EBP 20 blending target. The company’s overseas business was also impacted by US tariffs.
Execution issues and higher costs further added pressure on margins and earnings, keeping investor sentiment weak for most of the year.
The company is expanding into newer areas such as compressed biogas (CBG), sustainable aviation fuel (SAF), biopolymers, and bio-bitumen. These segments are still small but are gradually gaining traction and could support growth over the medium term.
In the September quarter, Praj Industries reported a sharp 65% year-on-year fall in net profit to ₹19.2 crore. However, profit improved significantly on a quarter-on-quarter basis from ₹5 crore in Q1FY26.
Revenue from operations rose modestly to ₹842 crore from ₹816 crore a year ago, while EBITDA declined to ₹56 crore. Operating margins narrowed to 7%, though they improved compared to the previous quarter.
Even after the steep correction, Praj Industries shares are still up over 200% in the last 4 years. At current levels, the stock is trading at its lowest price since April 2023.
As of the September quarter, retail investors hold about 34.8% of the company, while promoters own 32.8%. Foreign and domestic institutional investors hold 17.5% and 14.8%, respectively.
Praj Industries’ recent two-day rally shows signs of short-term relief, but 2025 remains a difficult year for the stock. Weak earnings and challenges in the BioEnergy business continue to weigh on performance. While diversification into new green fuel segments offers long-term promise, a sustained recovery will depend on better execution and improved demand.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 16, 2025, 2:18 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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