PI Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Agchem exports declined by approximately 18% YoY in Q2 FY27 and 15% YoY in H1 FY27 due to soft global demand and pricing pressure from genericization.
  • Domestic revenue grew by approximately 19% YoY in Q2 FY27 and 12% YoY in H1 FY27 despite pricing pressure.
  • Biologicals segment grew aggressively by over 45% YoY in Q2 FY27 and over 55% YoY in H1 FY27.
  • Health Sciences revenue grew by 20% YoY in Q2 FY27 but de-grew by 4% YoY in H1 FY27.
  • Global Biologicals revenue grew by over 250% YoY in Q2 FY27 and 96% YoY in H1 FY27.
  • 3 molecules commercialized in H1 FY27; 2 new products launched in Domestic market.
  • Commenced commercial GMP manufacturing of Galidesivir (API) in Health Sciences.

Key drivers of operational performance: Volume growth focus post-genericization, expansion of crop reach and product portfolio, aggressive investments in field trials and customer connect for biologicals.

Segment-wise Performance

  • Exports (Agchem CSM): Revenue decline due to global agrochemical sector headwinds, including genericization and El Nino effects. Focus on volume growth through price optimization.
  • Domestic Business: Strong growth driven by Biologicals (+45% in Q2) and differentiated portfolio. Expanding distribution and crop reach.
  • Health Sciences: Revenue growth in Q2 (+20%) but overall H1 decline (-4%). Portfolio expansion with new commercializations.
  • Global Biologicals: Exceptional growth (+250% in Q2) driven by channel and portfolio expansion in US, Brazil, and Mexico.

Explanation of significant changes: Domestic out performance was driven by biologicals and brand strength, while exports were impacted by sector-wide genericization and cost pressures not fully passed through to customers.

Financial Highlights

Q2 FY27 Standalone:

  • Revenue: ₹17,018 Mn (vs. ₹18,723 Mn in Q2FY26)
  • EBITDA: ₹2,362 Mn (vs. ₹5,434 Mn in Q2FY26)
  • PAT: ₹1,222 Mn (vs. ₹4,093 Mn in Q2FY26)
  • EBITDA Margin: 14% (vs. 29% in Q2FY26)
  • Gross Margin: 49% (vs. 57% in Q2FY26)

H1 FY27 Standalone:

  • Revenue: ₹34,041 Mn (vs. ₹37,728 Mn in H1FY26)
  • EBITDA: ₹6,055 Mn (vs. ₹10,653 Mn in H1FY26)
  • PAT: ₹3,664 Mn (vs. ₹8,093 Mn in H1FY26)
  • EBITDA Margin: 18% (vs. 28% in H1FY26)
  • Gross Margin: 53% (vs. 57% in H1FY26)

YoY comparison: Significant decline in profitability margins due to higher input costs (5% impact in Q2) and pricing pressure.

Drivers of financial performance: Higher input costs, pricing pressure in export markets, and increased overheads due to investments in new businesses (6% impact) and R&D (2% impact).

Key Risks: Raw material price hikes, regulatory risks, extreme climate impact creating uncertainties.

Geographical Revenue Split

Not explicitly broken down by geography in domestic/export terms. Presentation focuses on Domestic vs. Export business performance:

  • Export revenue declined significantly (~18% in Q2, ~15% in H1)
  • Domestic revenue grew strongly (~19% in Q2, ~12% in H1)

Balance Sheet Snapshot

As of September 30, 2026:

  • Shareholders Fund: ₹114,574 Mn (vs. ₹112,305 Mn in Mar-26)
  • Short term debt: ₹696 Mn (vs. ₹893 Mn in Mar-26)
  • Net Debt/Equity Ratio: 0.02
  • Cash, Bank & Investments: ₹37,478 Mn (vs. ₹35,094 Mn in Mar-26)
  • Net Working Capital: Reduced by 18 days (from 139 days in Mar-26 to 121 days in Sep-26), releasing ₹2,981 Mn cash
  • Surplus cash net of Debt: ₹35,737 Mn

Financial Health Insights: Strong balance sheet with cash surplus, low debt, and improved working capital management.

Capex & Cash Flow Health

  • Total capex for H1FY27: ₹5,674 Mn
  • Investment focus: Efficiencies, capacities, new initiatives and R&D
  • Continued investments in development of new businesses (6% of overhead increase) and R&D (2% of overhead increase)

Investment Rationale: Focus on capacity expansion, technology upgrades, and building long-term competitive moats.

Strategic & R&D Initiatives

  • R&D Platform: 700+ scientists including 200+ doctorates; 265+ patents till date with 13 patents in H1FY27; 50+ projects at different development stages
  • Pioxaniliprole: India's first discovered molecule launched in India; global launch planned post regulatory approvals
  • Biologicals Platform: World's 1st Biological foliar application nematicide commercialized in Mexico and US; Harpin αβ commercialized in 23 countries; 4.7M acres covered globally
  • Electronic & Specialty Chemicals: Successfully onboarded global customers; commercialized 3 molecules; dedicated EC Kilo Lab commercialization by Q3 FY27
  • Health Sciences: Investment in infrastructure including Kilo Lab plant in Lodi, Italy and R&D Center in Hyderabad; AIFA GMP Certification obtained

Expected impact on growth: 5+ products to be commercialized in FY27; non-Agchem opportunities with differentiated technologies to build long-term competitive moats.

Strategic Rationale: Transforming into a Lifesciences Company through technology-focused approach and building robust moats.

Industry Trends & Business Environment

  • Global agrochemical industry facing soft demand and pricing pressure from genericization
  • El Nino impact creating climate uncertainties
  • Major crop prices firmed up showing positive trend
  • Biological business continues to gain traction globally

Impact on Company: Pricing pressure affecting margins in export business; domestic growth supported by biologicals momentum; long-term growth trajectory remains intact despite short-term volatility.

Management Commentary & Growth Outlook

Strategic Outlook: Partnering deeper with innovators to build stronger core by value addition; expecting acceleration of growth through new products.

FY Guidance: Expect margins to normalize once volatility subsides; continued focus on volume growth amidst cost optimization.

Risks and Opportunities: Extreme climate impact creating uncertainties of outcomes; pricing pressure in global markets; biologicals platform showing excellent results leading to high adoption.

ESG Updates

  • Featured in S&P Global Sustainability Yearbook for 3rd consecutive year
  • Included in Dow Jones Best in Class (DJ BIC) Indices for Emerging Markets
  • Top 2 percentile of ESG-rated companies worldwide
  • Women in STEM positions increased to 15.5% in FY26 from 13.8% in FY25
  • 800+ acres brought under sustainable agricultural practices in Q1FY27
  • 572,000+ healthcare beneficiaries and 167,000+ students impacted through various initiatives since FY21