PI Industries (PIIND) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue fell 9% YoY to INR 17,018 Mn; EBITDA declined 57% to INR 2,362 Mn and PAT fell 70% to INR 1,222 Mn amid export weakness and cost pressure.

• H1 FY27 revenue declined 10% to INR 34,041 Mn, EBITDA fell 43% to INR 6,055 Mn and PAT fell 55% to INR 3,664 Mn.

• Domestic agri and biologicals were growth bright spots; proprietary innovation, pharma and specialty chemicals remained investment priorities.

• Pioxaniliprole received Indian registration and launched as Pioxazon, marking the first proprietary molecule to reach commercialization.

Financial highlights

• Q2 FY27 consolidated revenue was INR 17,018 Mn versus INR 18,723 Mn YoY; EBITDA was INR 2,362 Mn versus INR 5,434 Mn, and PAT was INR 1,222 Mn versus INR 4,093 Mn.

• Q2 EBITDA margin was 14% versus 29% YoY; gross margin was 49% versus 57%, and overheads rose to INR 6,091 Mn from INR 5,306 Mn.

• H1 FY27 revenue was INR 34,041 Mn versus INR 37,728 Mn; EBITDA was INR 6,055 Mn versus INR 10,653 Mn, and PAT was INR 3,664 Mn versus INR 8,093 Mn.

• H1 EBITDA margin was 18% versus 28% YoY; gross margin was 53% versus 57%, and overheads rose to INR 12,076 Mn from INR 11,029 Mn.

• Standalone Q2 revenue rose 12%, EBITDA 51% and PAT 58% YoY; consolidated Q2 PBT before exceptional items was INR 1,840 Mn versus INR 5,253 Mn.

Outlook and guidance

• FY27 outlook remained flattish; crop-protection export pressure is expected over the next couple of quarters, with some volume-demand green shoots by FY-end.

• Gross margin management target is 48%-49% over the next 2-3 quarters; 50%-52% is the target, while prior-year 52%-53% reflected exceptional conditions.

• More than 5 products are expected to be commercialized in FY27; 3 molecules were commercialized in H1, with 2-3 molecules in advanced chemical and biological development stages.

• Electronic chemicals target: $100 million in niche segments within 3-4 years, with some ramp-up expected next year.

• Pharma CRDMO targets INR 500-600 crore and EBITDA breakeven over 2-3 years; Plant Health Care inflection is expected in 2-3 years, defined by EBITDA positivity and more stable growth.