PI Industries reported mixed Q3FY26 results, showing near-term demand softness with revenue declining 28% YoY to INR 13,757 Mn. Despite volume pressures, the company maintained strong margins, with Gross Margin improving 631 bps to 59%. Key achievements include significant Capex investment of INR 7,225 Mn, robust ESG rankings, and progress in the innovation pipeline, positioning the company for growth recovery starting Q4FY26.
Q3 FY26 Financial Snapshot and Performance Context
PI Industries communicated its financial performance for the quarter ended December 31, 2025 (Q3FY26). The results reflect near-term demand softness primarily due to customer delivery phasing and market conditions. Revenue for Q3FY26 stood at INR 13,757 Mn, a 28% YoY decline. Conversely, the company showcased margin resilience, with Gross Margin improving significantly by 631 bps to 59%.
EBITDA for the quarter was INR 3,027 Mn (a 41% YoY drop), and Net Profit stood at INR 3,113 Mn (a 16% YoY decline). Notably, the Net Profit includes exceptional income of INR 1,260 Mn from the writeback of contingent consideration, partially offset by retirement benefit provisions.
Nine Months (9MFY26) Performance
For the nine months ended December 31, 2025 (9MFY26), consolidated Revenue was INR 51,485 Mn (down 17% YoY), while EBITDA reached INR 13,680 Mn (down 21% YoY). Net Profit stood at INR 11,206 Mn (down 16% YoY). Over the 9M period, the company maintained healthy 3-year CAGRs: Revenue at 1%, EBITDA at 5%, and PAT at 6%.
Segmental and Operational Highlights
The performance drivers indicated specific sector challenges:
- Agchem Exports: Declined by approximately 32% YoY, largely due to a 29% drop in volume aligned with customer delivery schedules.
- Domestic Revenue: Softened by about 8% YoY (Volume down ~2%) due to lower farmer demand for high-value products and adverse weather impacting key crops like chilli and grapes.
- Pharma: Revenue contracted by 6% YoY in Q3FY26 due to deferred supply schedules to Q4FY26, though Pharma revenue grew 50% YoY for the 9MFY26 period.
Despite the revenue contraction, the company emphasized preserved healthy margins due to a favorable product mix and cost discipline. The Board approved an interim dividend of Rs 5.00 per share for FY25-26.
Investing for Future Growth and Balance Sheet Strength
PI Industries continues aggressive investing for growth. Total Capex for 9M FY26 was INR 7,225 Mn (up from INR 6,485 Mn in 9M FY25). The balance sheet remains debt-free, with surplus cash net of debt at INR 35,066 Mn as of December 25, providing a strong war chest for accelerated growth.
The company also highlighted advancements in its portfolio:
- Agchem Innovation: Commercialized 5 new products in 9MFY26 and received regulatory approval for Harpinaß in India and a biochemical pesticide in the US.
- Pipeline: A robust pipeline of 20+ products is under development, and 2 more innovative products are expected to launch in FY26.
Strategic Pillars and ESG Leadership
The presentation reiterated the strategy focused on:
- Domestic Market: Portfolio diversification with high-quality revenue.
- CSM Exports: Accelerated commercialization of new products and sequential growth driven by offtake plans.
- Health Sciences (Pharma CRDMO): Expanding GMP sites and building global relationships.
- Biologicals: Positioning for long-term growth, with global ex-India annualized revenue nearing USD 13 Mn and growing in double digits.
Furthermore, the company confirmed its standing as a top ESG performer, ranking among the Top 2 percentile globally in the S&P Global ESG ratings, achieving a score of 77 in the 2025 Yearbook.
Outlook
The long-term outlook remains intact, focused on margin discipline and scaling strategic platforms. The company expects growth momentum to start building from Q4FY26, driven by a positive outlook for the Rabi season and regulatory normalization in the Biologicals business.
Source: BSE
