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Informist, Wednesday, Aug. 12, 2026

 

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--PI Ind: Operating environment in exports business remains challenging 
--CONTEXT: Comments by PI Industries' mgmt at post-earnings analyst concall 
--PI Ind: Global consumption pattern putting pressure on sales growth 
--PI Ind: Closely monitoring volatility in input material prices 
--PI Ind: See growth opportunities across Brazil, Mexico, Europe, US 
--PI Ind: Demand challenges automatically put pressure on prices Q1 
--PI Ind: Trying to optimise product mix, with margins under pressure 
--PI Ind: Seeing some sequential delays in pharma business order book 
--PI Ind: Investing in electronics chemicals business 
--PI Ind: Revenue from electronics chemicals not substantial currently 

 

By Gunjan Rajput and Rajesh Gajra

 

MUMBAI/NEW DELHI – PI Industries Ltd.'s export business continues to face a challenging operating environment as geopolitical issues, tariffs, and soft commodity prices weigh on growth and pricing, though the company remains confident of a recovery in the business over the longer term, a top official said in a post-earnings analyst concall Wednesday. 

 

"The operating environment continues to remain challenging," the official said, citing soft commodity prices, muted recovery in crop economics and consumption patterns that continue to exert pressure on growth and pricing. Geopolitical issues and tariff-related pressures have further increased costs, he said.

 

The company said its long-term business model and technology capabilities give it confidence despite the current weakness. "We remain confident of a positive trajectory for the business over the next long term," the official said, adding that the company is continuing to invest in complex manufacturing capabilities and technologies.

 

 

PI Industries' main operations are in agrochemicals, where it manufactures insecticides, herbicides, and plant biostimulants. The company's domestic business growth in the June quarter was volume-led. Domestic volumes grew 12%, translating into 3% revenue growth. "Our approach has been to push and take market share with our products...and not look at price," the official said, adding that pricing pressure is more pronounced in generic product ranges where commodities have a greater impact. 

 

The company attributed the performance to its differentiated product portfolio and said new product launches and improving market conditions should support growth in the coming quarters for the domestic business. "We remain optimistic about the growth outlook for the coming quarters," the official said.

 

PI Industries' consolidated net profit fell nearly 39% on year to INR 2.44 billion on revenues of INR 17.02 billion for Apr-Jun, with gross margin at 57% and earnings before interest, tax, depreciation, and amortisation margin at 22%. The company expects the financial year 2026-27(Apr- Mar) to be better than FY26, driven by a recovery in exports, new product launches and gradual scale-up of its pharma and global biological businesses.

 

Export volumes declined 8%, and export value fell 12% in the June quarter. The company said the impact of currency movements was limited by the company's pass-through business model, where currency and other benefits are shared across the value chain.

 

Pricing pressure also remains a concern as weak demand and subdued commodity prices weigh on the industry. "The demand factor has been challenged. Automatically, that puts pressure on price," the official said, adding that higher input costs have made it difficult to maintain the balance between selling prices and costs. The company expects some improvement from the second quarter, depending on global market and commodity-price trends. "I believe this will be better answered starting with Q2 (September quarter)," the official said.

 

Despite the export weakness, PI Industries said it is continuing to invest in newer businesses. Its electronic and specialty chemicals businesses are seeing positive inquiry and commercialisation trends, while investments supporting these businesses are progressing on track.

 

The company said electronic chemicals are now entering a more meaningful commercial phase. "We have put a commercial block, which has gone into operation, and commercial supply in that area has died with the new technology," it said, adding that it is entering a stage where the business can become significant from its perspective.

But currently, revenue from the electronic chemicals business is still not substantial, as per the company. PI Industries said it is seeing some sequential delays in its pharma business, with customer orders or deliveries sometimes shifting from one quarter to another depending on product launches and demand. 

 

PI Industries also remains focused on scaling its global biologicals business across Brazil, Mexico, Europe, and the US. The global biologicals platform is gaining traction, supported by field trials and customer engagement, the offical said. 

 

PI Industries maintained its earlier positive outlook for FY27 revenue, while cautioning that the trajectory remains dependent on the industry cycle. "We are looking at a positive trajectory," the offical said, adding that the company continues to maintain the same outlook given current conditions.

On margins, the management said geopolitical conditions, commodity prices, and logistics make it difficult to predict, but the company will focus on product-mix optimisation. "Our objective is to keep and maintain our gross margins at the best possible level," the offical said.

 

The company detailed its June quarter results on Tuesday post market hours. At 1357 IST, shares of the company traded at INR 2,477.10 on the National Stock Exchange, down 9.3%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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