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Informist, Thursday, Nov. 6, 2025

By Afra Abubacker

NEW DELHI – Agrochemical products company PI Industries Ltd. is expected to post a weak September quarter due to a sharp decline in exports, subdued domestic demand, and price corrections in key products.

Analysts expect a sharp decline in the company's bottom line due to a slowdown in its core custom synthesis and manufacturing segment, which develops and manufactures custom molecules for global agrochemical majors. The segment has been under pressure as pyroxasulfone, a key herbicide molecule, continues to face headwinds from US trade uncertainties and rising generic competition.

PI Industries is projected to report a net profit of INR 3.80 billion for the September quarter, down 32% on the year, according to the average of estimates from nine brokerages. Sequentially, the net profit is seen declining by over 18%.

The highest estimate for the company's September quarter net profit is INR 5.2 billion from Nirmal Bang Equities Pvt. Ltd., and the lowest estimate is INR 3.2 billion from Emkay Global Financial Services Ltd. PI Industries had reported a net profit of INR 5.59 billion in the year-ago quarter.

"PI's CSM (custom synthesis and manufacturing) business revenue is likely to decline about 30% year-on-year due to a high base. PI witnessed price correction in pyroxasulfone in Q1FY26 (Apr–Jun) compared with last year," Emkay Global said. It expects the segment's operating profit margin to drop to around 28% from 33% last year due to operating deleverage.

Kotak Institutional Equities expects a "particularly soft" quarter for PI Industries, and noted the company faces both tariff turbulence in export markets and kharif season weakness in the domestic market. "A disappointing kharif season due to excessive rainfall will hurt 2QFY26 earnings of agrochemical companies," it said. Excessive rains typically hit agrochemical companies as heavy showers wash away freshly sprayed products, and farmers do not reuse them to control costs.

Nuvama Institutional Equities also identified PI as a key underperformer among chemical companies, citing "a steep drop in pyroxasulfone sales and weather-related disruptions." It contrasted this with strong performances expected from companies such as SRF and Gujarat Fluorochemicals, driven by firm pricing in refrigerant gases and fluoropolymers. Brokerages said PI Industries' pharmaceutical portfolio may provide a partial cushion, but overall results are likely to extend the weakness seen since early 2025.

Of the 17 brokerage reports on the company available with Informist, nine have a "buy" recommendation on the stock with an average target price of INR 4,473, four have "hold," and four have a "sell" call on the stock. The company will announce its September quarter earnings on Tuesday.

On Thursday, shares of the company closed nearly 2% higher at INR 3,750.10 on the National Stock Exchange. The stock is down nearly 1% since the company announced its June quarter earnings.

PI Industries had reported a net profit of INR 4.64 billion for the June quarter, down 7% on year. The company's total revenue for that quarter was INR 17.69 billion, down 12% on year.

The following are the Jul-Sept earnings estimates for PI Industries Ltd. from nine brokerages in descending order of the estimate of net profit in INR million:

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Edited by Deepshikha Bhardwaj

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