Praj Industries aims to extend its strategic reach beyond bioenergy with a $50 million global supply agreement in hyperscale data centres, signalling a move towards faster-growing markets despite initial losses and ongoing challenges in its core business.
Praj Industries is trying to turn a one-off jump into a longer-term shift. The company said a US$50 million global supply agreement for hyperscale data centres is a strategic move into a faster-growing engineering market beyond its core bioenergy work, with the first project due between the second and fourth quarters of this year. Management said the new Praj Genex business is not yet profitable, but expects it to reach EBITDA breakeven by the end of the current fiscal year.
The latest update also suggests the diversification is already broadening beyond one contract. In results commentary reported by Scanx Trade, Praj said Genex has progressed through 12 customer audits and framework agreements, while management still sees FY27 as the breakeven year for the unit. That matches the company’s view on the earnings call that newer, shorter-cycle data centre orders could start contributing meaningfully before the fiscal year ends, giving the business a chance to build scale faster than more traditional industrial projects.
At the same time, Praj’s core bioenergy business is still dealing with slower execution in domestic ethanol plants, weaker collections and higher material costs. The company said funding delays at customer level and an ethanol supply-demand imbalance have stretched project timelines, while geopolitical pressures are lifting input costs. Even so, management pointed to a bigger policy tailwind in India after the Union Cabinet approved the Govardhan scheme, which it said could make compressed biogas a more bankable infrastructure asset through demand support, stable pricing and capital aid.
Praj is also leaning on international growth and new fuel technologies to lift margins over time. The company said export orders made up about 40% to 43% of the mix in the quarter, although revenue recognition will come later because execution has only just begun. It also has India’s first commercial-scale Bio-IBA demonstration plant under construction, with completion expected by December 2026, and sees potential for a 2% diesel blending mandate to unlock more than INR 3,000 crore in project opportunities. Meanwhile, a greenfield corn-to-ethanol project in Brazil gives Praj a marquee reference in a large overseas market, and management said services, technology and higher-value biofuels should gradually improve margins.
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