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Informist, Saturday, May 16, 2026

By Gunjan Rajput

NEW DELHI - PI Industries Ltd. is expected to report a decline in its March quarter earnings on a year-on-year basis, weighed down by lower realisations from Pyroxasulfone and weak demand in its custom synthesis and manufacturing segment, according to analysts. Sequentially, net profit and revenue are expected to rise, supported by a recovery in the pharmaceuticals segment and a low base from the previous quarter.

The company is estimated to report consolidated net profit of INR 2.79 billion, down nearly 16% on year, according to estimates from nine brokerages. On a sequential basis, profit is seen rising nearly 23%. The highest bottom line estimate is INR 3.36 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 2.39 billion from Kotak Securities Ltd.

The company's revenue is estimated at INR 16.41 billion, down over 8% on year, according to estimates from nine brokerages. Sequentially, the revenue is expected to rise over 19%. The highest bottom-line estimate is INR 17.83 billion from Anand Rathi Share and the lowest is INR 15.10 billion from Elara Securities (India) Pvt. Ltd.

The year-on-year decline is largely attributed to weakness in the custom synthesis and manufacturing segment due to lower realisations from Pyroxasulfone and subdued demand conditions. Analysts also flagged weak domestic formulation segment amid a soft rabi season.

"We have already witnessed a fall in Pyroxasulfone realisations, which we feel can weigh heavy on margins. CSM (custom synthesis and manufacturing segment) business is likely to de-grow in single digit, with domestic formulation business to de-grow in double digits due to the onset of a weak rabi season," Nuvama Wealth Management said.

However, on a sequential basis, the company's performance is expected to improve, boosted by a recovery in the pharmaceuticals segment and a low base from the previous quarter, according to brokerages.

The company's earnings before interest, tax, depreciation, and amortisation are pegged at INR 3.83 billion, according to the average of seven brokerages. The highest estimate for the EBITDA is INR 4.36 billion by Emkay Global Financial Services Ltd., while the lowest is INR 3.40 billion from Elara Securities.

Brokerages expect EBITDA to fall 11–20% on year, led by weaker custom synthesis and manufacturing segment performance and continued investments in pharma and biologics segments.

Among key issues to monitor, investors will track inventory trend in the custom synthesis segment, progress towards breakeven in the pharmaceuticals business, and updates on new product commercialisation. Commentary on pricing trends in key molecules, demand outlook, and capital expenditure plans for the next financial year will also be closely watched, according to brokerages.

For the financial year 2025-26(Apr-Mar), the company is expected to report consolidated net profit within a range of INR 12.71 billion–INR 13.10 billion. The highest estimate for net profit is from Motilal Oswal Financial Services Ltd., while the lowest estimate is from Prabhudas Lilladher Pvt. Ltd. The company's revenue for FY26 is expected to be in the range of INR 67.06 billion–INR 67.07 billion. The highest estimate for revenue is from Prabhudas Lilladher, while the lowest estimate is from Motilal Oswal.

PI Industries will announce its March quarter earnings on Tuesday. Friday, shares of the company ended marginally higher at INR 3,114.90 on the National Stock Exchange. Its shares have fallen over 1% since the company reported its December quarter results.

Out of the eight brokerage reports on the company available with Informist, two have a 'buy' recommendation on the stock with an average target price of INR 3,902. This is over 25% higher than the current market price. Three brokerages have a 'hold' rating on the stock with a target price of INR 3,631. Three brokerages have a 'sell' rating on the stock with an average target price of INR 3,135.

The following are the March quarter earnings estimates for PI Industries from nine brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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