PI Industries shares slip 3% after key client Kumiai cuts FY26 guidance

PI Industries shares declined more than 3% on Friday after Japan-based Kumiai Chemicals, its largest customer, lowered its FY26 revenue and profit guidance. Kumiai now expects a 5% drop in revenue and a 32%

decline in operating profit, driven largely by pricing pressure and weaker herbicide demand in select overseas markets.

Kumiai is the biggest buyer of PI Industries’ products and a crucial partner in its custom synthesis and manufacturing (CSM) business. PI supplies pyroxasulfone to Kumiai, which markets the herbicide under the brand name AXEEV.

Analysts estimate that pyroxasulfone contributes roughly 40% to PI’s total sales, making Kumiai’s revised outlook particularly important for the Indian agrochemicals company.

Kumiai said its FY25 performance outside Japan was mixed, with AXEEV (a powerful, low-dose herbicide) sales in Argentina declining even as the U.S. market saw an uptick due to lower distribution inventories and stronger sales promotion support. Operating profit fell year-on-year partly due to price adjustments for AXEEV as a counter to generic competition.

For FY26, Kumiai plans to sustain overseas AXEEV volumes while improving price competitiveness through production cost reductions. However, 360 ONE Capital warned that the trimmed guidance could weigh on PI’s FY27 estimates, particularly for pyroxasulfone-linked revenue.

The brokerage added that Kumiai’s renegotiation of raw material and ingredient pricing with suppliers may also put pressure on pyroxasulfone realisations. It expects the short- to medium-term outlook for PI to remain soft until its next set of CSM products begins to scale meaningfully. The brokerage has maintained a ‘Buy’ rating with a target price of ₹4,217.

As of 2:52 PM, PI Industries shares were trading at ₹3,280 on the NSE, down 2.84%.