Agchem Exports declined by approximately 12% year-on-year, with volumes down 8%, attributed to soft demand in the global agrochemical industry.
Domestic Agchem business showed revival with volume growth of approximately 12%, though revenue grew only ~3% due to pricing pressure.
The Biologicals segment grew aggressively by over 50% year-on-year.
Delayed monsoon led to partial postponement of sales in the domestic market.
PI Health Sciences (PIHS) revenue contracted by 25% year-on-year to INR 542 Mn (from INR 723 Mn in Q1FY26), primarily due to order book phasing and customer delivery schedules.
Increase in input material prices due to geo-political issues negatively impacted Gross margin.
Overheads were maintained at a lower single-digit increase.
Net Profit was in line with operating performance and reflected a higher Effective Tax Rate (ETR).
PIHS reported a PBT loss of INR 617 Mn, a 6% increase in loss compared to the INR 582 Mn loss in Q1FY26.
Balance Sheet & Capital Allocation
The company maintains a net debt-free balance sheet.
Shareholders' Fund stood at INR 114,683 Mn as of the latest period.
Short-term debt was minimal at INR 955 Mn.
Surplus cash net of Debt was INR 37,939 Mn, providing capacity for future strategic investments.
Total capital expenditure for Q1FY27 stood at INR 2,685 Mn, directed towards manufacturing capabilities and research & development innovation.
Net Working Capital reduced by 19 days.
Key Ratios: Debt/Equity Ratio was 0.02; Net Sales to Net Fixed Assets was 1.30 (annualized).
Key Business Updates
Agrochemicals (Agsciences)
A robust pipeline of 20+ products is at different stages of development and registration.
Over 90 molecules are in the active pipeline, with more than 60% in advanced stages of development.
5+ new products are planned for launch in FY27.
The non-Agchem share in new enquiries has increased by 25%, indicating portfolio diversification into segments like Electronic & Specialty Chemicals.
The company commercialized its 2nd generation product Harpin αβ in 25+ countries.
A peptide nematicide product is performing at par with leading chemical nematicides and is the industry's 1st nematicide for foliar application.
New product PHC949 has been registered and is being tested in the US.
Market activities are ramping up in Brazil, Mexico, Europe, and the US, with 500+ field trials and engagement with 1,000+ growers.
Health Sciences (PIHS)
PIHS is building a differentiated Contract Research, Development, and Manufacturing Organization (CRDMO) platform.
Four marquee customers were onboarded in the quarter.
Signed as an exclusive partner for Integrated Drug Discovery with a Biotech company.
Renewed AIFA GMP Certification for its Lodi, Italy site.
Obtained QC Lab GMP Certification at the Lodi site.
Invested ~INR 233 Mn in capex to expand CDMO capacity, build QC & Kilolab facilities in Lodi, and a Biology lab in Hyderabad.
The business faces headwinds from a slowdown in biotech funding and geopolitical challenges.
Research & Development (R&D)
World-class R&D setup with state-of-the-art labs at 4 locations.
Employs 700+ Scientists, including 200+ Doctorates.
Holds 260+ patents to date, with 10 patents filed in Q1FY27.
Facilities are NABL ISO17025 and GLP certified.
Recently added new equipment: ICP-OES and UPLC-CAD (Charged Aerosol Detector).
PI is the 1st Indian company to innovate "PIOXANILIPROLE," which is now filed for registration.
ESG Initiatives & Awards
Featured in the S&P Global Sustainability Yearbook 2026 and included in the Dow Jones Best in Class (DJ BIC) Indices for Emerging Markets for the 3rd consecutive year.
Ranked among the Top 25 companies globally in the chemical sector for ESG and in the Top 2 percentile of ESG-rated companies worldwide.
Key ESG Highlights (as of Mar 31, 2026):
Reduced CO₂ emission intensity by 7%+ from FY26.
Reduced Chemical Oxygen Demand by ~8% vs Q1FY26.
~16% renewable energy share of total electricity consumption vs. FY21.
Water intensity increased by ~16% from FY26.
Lost Time Injury Frequency Rate (LTIFR) was 0 for all employees and contractual workers.
CSR Initiatives:
66 villages covered under health programs (26,200+ beneficiaries).
80 rural villages active in women empowerment programs (6,500+ women benefited).
