PI Industries shares fall 5% as management does not see a recovery till H2 FY27

Shares of PI Industries Ltd. slipped nearly 5% on Wednesday, November 12, after the company reported a weak September-quarter performance marked by double-digit declines in revenue and profit, though margins remained steady.

The company posted a consolidated net profit of ₹409 crore for the quarter, down 19.4% year-on-year from ₹508.2 crore.

Revenue fell 15.7% to ₹1,872.3 crore from ₹2,221 crore in the same quarter last year.

EBITDA also declined 13.8% year-on-year to ₹541.3 crore. However, operating margins improved slightly to 28.9% from 28.3% a year ago.

Despite the year-on-year weakness, the company's performance was ahead of CNBC-TV18's poll estimates, which had estimated a net profit of ₹358 crore and revenue of ₹1,810.5 crore.

The decline in topline was largely attributed to a 17-18% drop in agri-chemical exports due to lower volumes and customer delivery schedules, along with a 13% fall in domestic revenue, impacted by erratic rainfall and regulatory transitions in the biologicals segment.

Management said that while the short-term outlook remains subdued, it expects a slight recovery in Q4 and a full rebound only in the second half of next year.

PI Industries maintained its FY26 EBITDA margin guidance at 26-27%, adding that working capital days had risen to 115 but are expected to improve as market conditions normalise.

The company reaffirmed a positive long-term outlook, citing growth potential from new product launches, which grew 27% year-on-year during the quarter.

Brokerage firm Jefferies maintained a 'Buy' rating on the stock with a price target of ₹4,315 per share, citing that while domestic revenue fell 13% year-on-year, below estimates, management's focus on margin stability and new product pipeline supports long-term growth.

Shares of PI Industries are now trading 4.33% lower at ₹3,623. The stock is down 2% on a year-to-date basis.