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%), reflecting global agrochemical headwinds and domestic regulatory disruptions.

• 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 both Q2 and H1 FY26, up over 550 bps YoY, driven by favorable product mix and operational efficiencies.

• New product launches and diversification into pharma, biologicals, and specialty chemicals continue, with five new CSM products and three domestic agri brands commercialized in H1.

• Investments in capability-building, R&D, and global expansion remain a priority, with a focus on long-term growth and resilience.

Financial highlights

• Agchem exports declined 18% in Q2 and 16% in H1 YoY, mainly due to volume drops and deferred 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, driven by new customer onboarding.

• Biologicals business delivered $10–12 million in annual revenue, with ongoing investments in product development and market expansion.

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

Outlook and guidance

• Recovery in domestic and export businesses expected from Q4 FY26, with positive momentum anticipated for Rabi season and full industry normalization projected for H2 2026 or later.

• Guidance remains muted for FY26, with cautious optimism for H2 and a focus on long-term growth drivers.

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

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