Agrochemical Stock Falls 7% After Export Revenue Decreases 32% YoY

Synopsis: PI Industries Ltd shares fell 7% as Q3 sales dropped 28% YoY to Rs. 1,376 crore, hit by a 32% fall in agrochemical exports and weaker domestic demand, though pharma and biologicals show long-term growth potential.

The shares of this company specialised in custom synthesis and contract manufacturing of chemicals, which includes techno-commercial evaluation of chemical processes are in the spotlight after it fell by 7% in today’s session following an export revenue drop by 32% and volumes down by 29%.

With a market capitalisation of Rs. 47,644 cr, the shares of PI Industries Ltd were trading at Rs. 3,140.30 per share, dropping 7% in today’s market session, making a low of Rs. 3,000, down from its previous close of Rs. 3,224.20 per share. 

Q3 Results 

Sales declined to Rs. 1,376 crore from Rs. 1,901 crore, a 28% decrease. EBITDA fell from Rs. 512 crore to Rs. 302 crore, marking a 41% contraction. Net profit reduced to Rs. 311 crore from Rs. 373 crore, translating into a 17% decline, while EPS dropped from Rs. 24.57 to Rs. 20.52. Overall, profitability weakened in line with the sharp moderation in revenues and operating earnings.

On a sequential basis, sales fell from Rs. 1,872 crore to Rs. 1,376 crore, a 26.5% decline. EBITDA dropped sharply from Rs. 541 crore to Rs. 302 crore, reflecting a 44% decrease. Net profit decreased from Rs. 409 crore to Rs. 311 crore, a 24% fall, and EPS declined from Rs. 26.98 to Rs. 20.52, down 24%. 

Reason for the fall 

Agrochemicals exports fell ~32% YoY, mainly due to a ~29% volume reduction driven by timing and changes in customer delivery schedules. Domestic revenue dropped ~8% YoY, despite only ~2% lower volumes, as farmer demand for high-value products weakened amid erratic monsoons and lower commodity prices, affecting crops like chilli and grapes. 

Biologicals faced temporary regulatory disruptions but are normalising. Pharma revenue declined 6% YoY due to deferred supply schedules, with limited overall impact since it represents ~5% of exports. 

Business Highlights

The company has a strong pipeline of 20+ products at various stages of development and registration. PI Mitra Kisan is enhancing farmer engagement through its digital platform. Scaling the pharma platform through new customer wins in the CRDMO portfolio. It has onboarded several strategic and large pharma customers over the past 12 months, supporting mid- to long-term growth.

Global (Ex-India) annualized revenue is ~USD 13 million, with gross margins above 60%, expected to grow in double digits. For 9MFY26, revenue grew 50% YoY, driven by product mix and one-off processing-related costs. Overheads increased due to investments in capabilities, people, and processes. Capex for 9MFY26 was ~Rs. 61.6 cr, down from ~Rs. 95.4 cr in 9MFY25.

Biologicals are well-positioned for long-term global growth, with regulatory pathways and market trials progressing as planned. Key initiatives include product development investments in the US, Brazil, and Mexico, expanding distribution and seed treatment brands in Brazil, launching a nematode solution in Mexico, filing for Bio-nematicide registration in the US, and receiving approval for Harpina in India. 

Decades of Transformation 

Over the decades, the company has driven consistent revenue growth through strategic transformations. Starting as a leading agri-distribution player, it became the first to commence Agchem CSM by pioneering biologicals in India and investing in R&D with Rs. 250 cr per year. 

It then expanded into pharma and global biologicals (AgSciences to LifeSciences) with geographic growth across the US, LATAM, and Europe. The next phase envisions an innovation-led global conglomerate, with top 5 CRDMO pharma presence, global biological leadership, new molecule and technology development, and entry into electronics chemicals.

PI Industries Ltd is a leading Indian life‑sciences company, primarily focused on agrochemicals. It manufactures and markets crop protection products like insecticides, herbicides, fungicides, and specialty biologicals for domestic and international markets. 

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