PI Industries (PIIND) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 18,723 million, down 16% YoY, with EBITDA at INR 5,434 million (down 14%) and PAT at INR 4,093 million (down 19%).

• H1 FY26 revenue was INR 37,728 million, down 12% YoY, with EBITDA at INR 10,653 million (down 12%) and PAT at INR 8,093 million (down 15%).

• Gross margin improved to 57% in Q2 and H1 FY26, up over 550 bps YoY, driven by favorable product mix and operational efficiencies.

• Pharma business doubled revenue YoY in H1, with new customer additions in the U.S. and Europe, though profitability remains impacted by investment phase and product mix.

• Biologicals business is in investment phase, with global expansion, new research center in Hyderabad, and new US registration and Mexico launch.

Financial highlights

• Agchem exports declined 18% in Q2 and 16% in H1 YoY, mainly due to volume drops and customer delivery schedules.

• Domestic revenue fell 13% in Q2, impacted by erratic rainfall and regulatory transitions.

• Pharma revenue grew 104% YoY in H1, now contributing ~4% of exports revenue.

• Capex for H1 FY26 was INR 4,415 million, focused on manufacturing and R&D infrastructure.

• Trade working capital days increased to 115, reflecting current market conditions.

Outlook and guidance

• Recovery in domestic and export businesses expected from Q4, with positive Rabi season outlook and improved water levels.

• Full industry recovery anticipated in H2 2026 or later; short-term guidance remains muted due to ongoing macro headwinds.

• Pharma and biologicals expected to scale up over the next few years, with profitability following as scale is achieved.

• ETR expected to be 22%-23% for the next 2-3 years.

• Continued focus on margin discipline, portfolio diversification, and scaling strategic platforms.