P.I. Industries (PI IN) – Q2FY26 Result Update – Near-term weakness amid industry headwinds – HOLD
Published on 12 Nov 2025
PI Industries reported consolidated revenue from operations of Rs18.7bn, reflecting a 16% YoY and 1% QoQ decline. The CSM segment, which contributes around 75% of total revenue, witnessed 18% YoY and 5% QoQ degrowth, impacted by subdued global agrochemical demand. The segment is expected to recover from Q4FY26 onwards. However, new product launches in this segment delivered robust 38% YoY growth. The domestic agchem branded business also declined 13% YoY, as erratic rainfall disrupted demand. Additionally, the biologicals segment was affected by regulatory challenges, which have now been resolved. The pharma business, still in its ramp-up phase, reported revenue of Rs634mn, up 54% YoY. While the segment remains loss making, management expects breakeven at around Rs5bn in revenue. We expect near-term challenges in the agrochemical space to weigh on overall performance. However, medium-term growth will be supported by new CSM product launches, biologicals recovery, and scale-up in pharma. We estimate consolidated revenue/EBITDA/PAT CAGR of ~5%/7%/6% over FY25–28E. At current levels, the stock trades at 28x Sep’27E EPS. We value the stock at 29x Sep’27E EPS, arriving at a target price of Rs3,666, and maintain our ‘HOLD’ rating.
