Praj Industries Hit 2-Year Low On Weak Q1 Earnings; SEBI RA Warns Of More Downside To ₹310

Praj Industries’ shares slumped as much as 8.76% on Tuesday, hitting a two-year low after the company posted a steep 93.7% year-on-year decline in Q1FY26 consolidated profit after taxes after-market hours on Monday.  Its income from operations fell 8.4% to ₹6.40 billion.

The sharp drop was attributed to cautious sentiment in the ethanol market and persistent geopolitical uncertainties.

At the time of writing, Praj Industries’ shares were trading 7.3% lower at ₹413.35.

Technical Analysis

This was the stock’s seventh straight losing session, with prices falling 13.36% over the past week, noted SEBI-registered analyst Akhilesh Jat. Technically, the counter had been trading near a crucial support zone, the neckline of a partial head & shoulders pattern on the daily chart.

Although not a typical formation due to an uneven right shoulder, the breakdown and sustained trade below the neckline reinforce the bearish bias, Jat said.

If prices remain below ₹445 for an extended period, technical indicators point to possible downside targets of ₹370 and ₹310 in the near term, he added.

Fundamental View

The stock’s fundamentals are weakening as well, the analyst said. It has declined more than 53% from its 52-week high. In the April–June quarter, revenue from operations stood at ₹640.20 crore, compared to ₹699.14 crore in Q1FY25 and significantly lower than ₹859.69 crore in Q4FY25, reflecting weakening fundamentals.

Given the combination of weak earnings, sector headwinds, and bearish chart structure, Jat advised caution against taking up fresh positions.

Weak Retail Sentiment

Retail sentiment on Stocktwits remained ‘bearish’, amid ‘high’ message volumes. It was ‘neutral’ a week ago.

Year-to-date, the stock has tanked 50%.

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