PI Industries faces headwinds, projects H2 recovery

PI Industries reported a 16% decline in Q2 FY26 revenue to INR 18,723 million, and a 12% decline in H1 revenue, attributed to global agrochemical headwinds, erratic rainfall, and regulatory changes affecting biologicals. The company commercialized five new products in AgChem Exports and three in Domestic Agri Brands in H1, with new AgChem Export products showing 38% year-on-year growth. Pharma business revenue saw 54% year-on-year growth in H1.

Looking ahead, PI Industries expects recovery in Q4 FY26 for exports and a positive Rabi season for domestic business, albeit with a cautious outlook due to changing weather conditions. The company is investing in its CDMO platform, onboarding new clients, and developing late-stage programs, with a positive long-term outlook. The biologicals business is also in an investment phase, aiming for substantial growth in the coming years, with current yearly revenues between $10m to $12m.

The company's contract assets increased due to customer delivery schedule deferments, with finished goods produced for confirmed orders to be delivered over the next one to two quarters. PI Industries maintains an overall order book position of approximately $1.25bn and remains focused on strategic partnerships and cost optimization.