PI Industries (PIIND) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was INR 13,757 million, down 28% year-over-year, reflecting market softness, customer delivery phasing, and high base effect.

• Nine-month FY26 revenue declined 17% year-over-year to INR 51,485 million, with gross margin improving by 573 bps to 58%.

• Pharma segment delivered 50% year-over-year growth in 9MFY26, expanding client base and capabilities, especially in the US, Europe, and East markets.

• Biologicals business progressed with regulatory milestones, global expansion, and new product approvals, with annualized ex-India revenue of ~USD 13 million and >60% gross margin.

• Exceptional income from a contingent consideration write-back of INR 1,260 million and a non-recurring employee benefit liability of INR 209 million due to new labour codes.

Financial highlights

• Q3 FY26: Revenue INR 13,757 million, EBITDA INR 3,027 million (-41% YoY), PAT INR 3,113 million (-16% YoY), gross margin 59% (+631 bps YoY).

• 9MFY26: Revenue INR 51,485 million, EBITDA INR 13,680 million (-21% YoY), PAT INR 11,206 million (-16% YoY), gross margin 58% (+573 bps YoY).

• Capex spend of INR 7,225 million in 9MFY26; net cash position of INR 35 billion.

• Interim dividend of INR 5.00 per share approved for FY25-26.

• Trade working capital increased to 139 days of sales.

Outlook and guidance

• Sequential growth expected in Q4 FY26, with volume growth targeted and momentum to build into FY27.

• Revenue growth anticipated to resume in FY27 as industry conditions stabilize.

• Gross margin guidance maintained at 50-53% on a sustainable basis, with actuals currently above this range.

• CapEx for FY27 projected at INR 500-600 crore, with further details after board approval.

• Pharma CRDMO platform expanding with new customer wins and enhanced R&D pipeline visibility.