PI Industries (PI IN) Hold: A challenging quarter, recovery back-ended

Research evidence excerpt

PI Industries (PI IN) Hold: A challenging quarter, recovery back-ended

21 May 2026

PI Industries (PI IN) EquitiesAgricultural Products

Hold: A challenging quarter, recovery back-ended India

◆ 4QFY26 earnings another miss given disappointment in the

MAINTAIN HOLD

Ag business; higher overheads pressure EBITDA margins

◆ Zone of uncertainty: core businesses remain muted, and new TARGET PRICE (INR) PREVIOUS TARGET (INR)

businesses take time to scale up necessary investments 3000.00 3100.00

◆ Maintain Hold with a lower target price of INR3,000 (from SHARE PRICE (INR) UPSIDE/DOWNSIDE

INR3,100) as we cut earnings growth estimates 2901.20 +3.4%

(as of 20 May 2026)

Another quarter of disappointment. PI net earnings were a miss on HSBCe as

revenues and margins disappointed. We do not see any triggers to growth in the near MARKET DATA

Market cap (INRm) 440,634 Free float 54%

term given weakness in the legacy portfolio and flattened new product growth in FY26, Market cap (USDm) 4,564 BBG PI IN

while new businesses remain in investment mode for a few quarters at least. This will 3m ADTV (USDm) 9 RIC PIIL.BO

also pressure PI’s EBITDA margins, in our view. We therefore cut our FY27-28e FINANCIALS AND RATIOS (INR)

earnings by 10% as we now build in lower growth (+10% in FY27e, back-ended in Year to 03/2026a 03/2027e 03/2028e 03/2029e

HSBC EPS 87.06 89.64 99.53 112.49

2HFY27) and margin assumptions (c25-26% EBITDA margins). We maintain a Hold HSBC EPS (prev) 94.61 99.16 110.13 na

rating as we expect the cINR26bn of capital expenditure over the past three years Change (%) -8.0 -9.6 -9.6 na

Consensus EPS 89.09 95.05 108.55 114.80

across business verticals will translate into growth once the industry backdrop turns PE (x) 33.3 32.4 29.1 25.8

favourable and new businesses reach fair scale.