PI Industries (PIIND) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue declined 28% year-over-year to INR 13,757 million, reflecting global AgChem downcycle, customer delivery phasing, and market softness.

• Early signs of stabilization are visible, with gradual improvement expected in coming quarters; rabi sowing in India is ahead of last year, but agrochemical demand remains muted.

• Strategic focus remains on innovation, portfolio diversification, and expansion into biologicals, specialty, and electronic chemicals.

• Pharma business delivered 50% year-over-year growth in 9MFY26, with new clients onboarded and expansion into US, Europe, and East markets.

• Biologicals segment progressing with regulatory milestones and global expansion, including approval of Harpinαβ in India and Obrona in the US.

Financial highlights

• Q3 FY26 revenue was INR 13,757 million, with EBITDA at INR 3,027 million and PAT at INR 3,113 million; gross margin expanded to 59%.

• 9MFY26 revenue was INR 51,485 million, EBITDA INR 13,680 million, and PAT INR 11,206 million, with gross margin at 58%.

• Net profit includes an exceptional income of INR 1,260 million from a write-back in pharma, partly offset by INR 209 million in additional retirement benefit provisioning.

• Capex spend of INR 7,225 million in 9MFY26, with surplus cash net of debt at INR 35,066 million.

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

Outlook and guidance

• Sequential growth expected in Q4 FY26, with volume uptick already visible and growth momentum anticipated to build into FY27.

• Revenue and volume growth expected to resume in FY27, with optimism based on customer visibility and internal initiatives.

• Gross margin guidance maintained at 50-53% on a sustainable basis, with quarterly variations due to product mix.

• CapEx for FY27 estimated at INR 500-600 crore, with further details to be provided after board approval.

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