PI Industries reported a disappointing March quarter, with profit and operating margins falling sharply as weak export demand and softness in the domestic market dragged performance below Street expectations. Consolidated net profit dropped 39.4% year-on-year to Rs 200 crore, compared with Rs 331 crore a year ago. Revenue declined 12.4% to Rs 1,565 crore from Rs 1,787 crore, while EBITDA fell 26.1% to Rs 337 crore.
The EBITDA margin contracted to 21.5% from 25.5% a year earlier, significantly below the company's earlier guidance of 25% to 27%. The board recommended a final dividend of Rs 10 per share.
Seventh Miss In Nine Quarters
The results were another disappointment for investors. EBITDA came in about 15% below analyst estimates, marking the seventh time in the last nine quarters that the company has missed Street expectations.
Management attributed the weak quarter largely to customer delivery schedules, which delayed shipments and impacted revenue recognition.
Exports remained under pressure amid a prolonged slowdown in the global agrochemical industry, while domestic operations were affected by elevated channel inventories, pricing pressure and lower crop acreage. Volumes and realisations for pyroxasulfone, one of the company's key products, were also weaker than expected, adding to the earnings drag.
Management Optimistic on FY27 Recovery
Despite the soft quarter, management struck a constructive tone on the outlook for FY27. The company expects to launch more than five new molecules during the year, supported by a strong order book and improving pipeline visibility over the next one to two years.
Management said a gradual recovery in the agrochemical business is likely as demand improves and inventory levels normalise globally. The biologicals segment is also expected to revive as regulatory approvals pick up, while the pharmaceutical business is seeing positive momentum through new partnerships.
PI Industries said it remains “cautiously optimistic” and expects growth to accelerate in the second half of FY27, when the benefits of new launches and better demand conditions begin to materialise.
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