Mar-26 Review: Miss again; Soft base for FY27

Research evidence excerpt

Mar-26 Review: Miss again; Soft base for FY27

India | Agribusiness

PI Industries EquityMayResearch20, 2026

TARGET | ESTIMATE CHANGEMar-26 Review: Miss again; Soft base for

RATING BUYFY27

PRICE INR2,890.00^

PI reported a miss on EBITDA and PAT. New product growth has slowed,

INR3,575 (INR3,675) |

and pyroxasulfone is in sharp contraction. Working capital rose sharply. A PRICE TARGET | % TO PT +24%

favorable base and growth in new molecules should restore growth in FY27, 52W HIGH-LOW INR4,329.00 - INR2,700.00

with management expecting high-single-digit revenue growth. We forecast FLOAT (%) | ADV MM (USD) 53.5% | 8.74

adjusted PAT Cagr of 12% over FY26-28E. Maintain Buy with PT Rs 3,575. MARKET CAP INR438.5B | $4.5B

TICKER PI IN

Weakness continues: Revenues declined 12% y/y, broadly in line with JEFe. CSM exports ^Prior trading day's closing price unless otherwise

declined 15% y/y, in line with JEFe. Domestic revenues at Rs 3.1bn (-9 y/y) were 17% below noted.

JEFe, amid higher channel inventory and pricing pressure. Pharma revenues were up 23% y/

y and were sharply above JEFe. EBITDA was a 5% miss on JEFe, with margin down 400bps

FY (Mar) CHANGE TO JEFe JEF vs CONS

y/y on negative operating leverage. PAT (-39% y/y, -36% q/q) was 17% below JEFe, on higher-

than-expected tax rate due to increase in non-SEZ sales in 4Q. 2027 2028 2027 2028

REV NM NM NA NA

New products not compensating for key product slowdown: Pyroxasulfone exports declined EPS NM -3% -9% -10%

~37% y/y in 11MFY26 while new product growth slowed to 5% y/y. Contract assets that

have passed through the P&L stand at Rs 7.1bn. Company is hopeful of a breakthrough 2027 (INR) Q1 Q2 Q3 Q4 FY

in electronic chemicals. Company expects to ramp up the electronic chemicals to Rs 10bn EPS -- -- -- -- 90.38