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    PI Industries Limited

    PIIND
    Chemicals·12 Nov 2025
    Management Summary

    P I Industries reported a challenging Q2 FY26 with a 16% YoY revenue decline to ₹18,723 million, primarily due to global agchem headwinds and domestic weather/regulatory issues. Despite this, the Pharma business showed strong 54% YoY growth, and new AgChem export products grew 38% in H1. The company maintains a resilient EBITDA margin and a robust CSM order book of $1.25 billion, anticipating recovery in Q4 FY26 and H2 2026 for the broader industry.

    Highlights

    5

    • Pharma business demonstrated strong growth with 54% Y-o-Y revenue growth in Q2 and doubled revenue over H1, driven by deepening relationships with biotech and big pharma innovators.

    • New products in AgChem Exports registered a decent 38% Y-o-Y growth in H1, demonstrating derisking strategy and focused approach.

    • The company remains on track to commercialize 8 to 10 new molecules in the current fiscal, having commercialized 5 in H1, with a development pipeline of over 20 new products.

    • Gross margin expanded and EBITDA margin remained resilient due to favorable product mix and operating efficiencies, despite revenue decline.

    • The CSM order book stands at a robust $1.25 billion, providing future visibility.

    Concerns

    5

    • Overall revenue declined 16% from the high base of the same period last year to ₹18,723 million, and a 1% sequential decline.

    • Domestic revenue saw a 5% Y-o-Y decline during H1 FY26, negatively affected by excessive rainfall and abrupt regulatory actions on biologicals.

    • The global agchem industry is experiencing a prolonged down-cycle with 3% to 5% decline in H1 revenue for most innovators, driven by destocking, price deflation, and weather disruptions.

    • Pharma business is in an investment phase, with higher overheads impacting profitability, and biotech funding slowdown affecting pipeline conversion.

    • Trade working capital rose to 113 days of sales, reflecting current market conditions.

    What Changed2

    vs Q3 FY26

    Guidance items9 → 7 (-2)Risks discussed4 → 7 (+3)
    Key financials

    Metrics

    10

    Periods

    3

    Headline

    7
    • Revenue
      18,723 Mn
      YoY-16%QoQ-1%
    • H1 Revenue Decline
      12%
    • H1 3-Year CAGR
      8%
    • Biologicals Revenue
      10 Mn
    • Trade Working Capital Days
      113 days

    Q2

    2
    • 3-Year CAGR
      2%
    • Pharma Revenue Growth
      54%

    H1

    1
    • AgChem Exports New Products Growth
      38%

    Guidance & targets

    7
    CategoryTargetPriority
    New Product Commercialization
    New Molecules Commercialized
    8 to 10
    		High
    New Product Development
    New Products in Development Pipeline
    over 20
    		High
    Tax Rate
    Effective Tax Rate (ETR)
    22%-23%
    		High
    Pharma Business
    Profitable Growth and Positive EBITDA
    achieve in next 1 year
    		Medium
    Biologicals Business Growth
    Biologicals Business Increase
    three- to four-fold increase
    		Medium
    Biologicals Business Growth
    Domestic Biologicals CAGR
    25-plus percent
    		High
    Gross Margin
    Sustainable Gross Margin Level
    50% to 52%
    		High

    Domestic Biologicals Sales Recovery

    Q4 FY26
    CurrentImpacted by regulatory changes, in documentation phase
    TargetSales traction from Q4 FY26 post-documentation

    Why it matters

    Recovery of domestic biologicals sales is crucial for overall domestic segment growth, which declined in H1.

    Yes. As you know🎣, there was ban put on biologicals product sales with the regulatory framework in India. Those have now been sorted out, but now we are in the regulatory phase of getting the documentation procedures and once that comes, we see it moving from the fourth quarter and this is specific to India.

    How to verify

    key_financials.segment_breakdown[name='Domestic'].metrics[label='Revenue']

    Risks & concerns

    7
    RiskSeverity

    Global agchem down-cycle

    Prolonged down-cycle driven by distributor/farmer destocking, sharp price deflation from Chinese overcapacity, low commodity prices, rising interest rates, and weather disruptions. — Management acknowledged

    high

    Domestic market challenges

    Erratic and prolonged rains, excessive rainfall, abrupt regulatory changes on biologicals, and fertilizer shortfall impacted Kharif season and led to crop damage. — Management acknowledged

    high

    Higher inventory and credit levels

    Industry sought to support channel partners amid market liquidity constraints, leading to higher inventory and credit levels. — Management acknowledged

    medium

    Macro headwinds and geopolitical uncertainties

    Global and local industry facing macro headwinds, climatic challenges, and geopolitical uncertainties impacting short-term growth. — Management acknowledged

    high

    Biotech funding slowdown and geopolitical challenges in Pharma

    Impacting the conversion of proposals in the pharma pipeline, despite investment in capability-building. — Management acknowledged

    medium

    US tariffs creating uncertainty

    Uncertainty in both agchem and pharma sectors due to US tariffs is creating slowdown in decision-making. — Management acknowledged

    medium

    Domestic biologicals regulatory issues

    Abrupt regulatory changes and a ban on biologicals product sales impacted domestic business, now in documentation phase for resolution from Q4. — Management acknowledged

    high

    Q&A highlights

    8

    “But we see, at least in the Domestic and Exports, there are early shoots of a positive trajectory. Clearly, we see good potential for the H2 from the Rabi season, given the reservoir levels. But again, I must put a cautious view to say that today looking at the climatical situations, it will be very much dependent on that but the positivity water levels gives us a positive outlook for Rabi.”

    Analyst sought specific H2 growth numbers, but management provided a cautious, qualitative outlook dependent on weather, indicating uncertainty.

    asked by Saurabh Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Overview

    P I Industries reported a revenue of ₹18,723 million for Q2 FY26, marking a 16% decline from the high base of the previous year and a 1% sequential decline. On a 3-year CAGR basis, Q2 growth was 2%, while H1 saw an 8% 3-year CAGR. The decline was attributed to a prolonged global agchem down-cycle and domestic market challenges🌐, including erratic rainfall and regulatory changes.

    02

    Global Agchem Industry Outlook

    The global crop protection market is experiencing a down-cycle due to destocking, price deflation, low commodity prices, and weather disruption🌐s. Most global innovators reported a 3% to 5% decline in H1 revenue. A modest recovery is anticipated in Q4 FY26, with a full recovery not expected before H2 2026. The silver lining is stable input prices and volume-driven normalization of inventory levels.

    03

    Domestic Market Challenges and Outlook

    The domestic market in Q2 witnessed erratic and prolonged rains, negatively impacting the Kharif season despite positive sowing trends. Over 1.2 million acres of crops were damaged, leading to higher inventory and credit levels. Domestic revenue declined 5% YoY in H1. However, plentiful rains have benefited the paddy crop, and the Rabi season is looking positive due to healthy reservoir levels.

    04

    Pharma Business Growth and Investment

    The pharma business demonstrated strong performance, achieving 54% Y-o-Y revenue growth in Q2 and doubling its revenue over H1. The company onboarded new customers and is building an integrated CRDMO platform. While biotech funding slowdowns and geopolitical challenges🌐 are impacting pipeline conversion, PI Industries continues to invest in capability-building and expects to achieve profitable growth and positive EBITDA within the next year.

    05

    Biologicals Business Development

    PI Industries is scaling its biologicals business globally, with a new research center commissioned in Hyderabad. The company aims for a three- to four-fold increase in this business, building on a past domestic CAGR of over 25%. Regulatory changes in India temporarily impacted biologicals sales, but these issues are being resolved, with sales expected to move from Q4 FY26 after documentation procedures.

    06

    CSM Order Book and New Product Pipeline

    The company's CSM order book stands at $1.25 billion. PI Industries commercialized 5 new molecules in H1 FY26 and plans to launch 8 to 10 new molecules in the current fiscal. The development pipeline includes over 20 new products. New products in AgChem Exports grew 38% YoY in H1, contributing to derisking and growth in a tough environment.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.