Shares of PI Industries Ltd. declined 15% on Thursday, November 5, after the company reported a sharp decline in its September quarter (Q2 FY27) earnings, with lower agrochemical exports and margin pressure weighing on profitability.
The company’s revenue declined 9% year-on-year to ₹1,702 crore in Q2 FY27, compared with ₹1,872 crore in the corresponding quarter last year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 57% year-on-year to ₹232 crore from ₹541 crore a year ago. EBITDA margin contracted sharply to 13.7% from 28.9% in the year-ago quarter.
Net profit declined 71% year-on-year to ₹118 crore, compared with ₹407 crore in the corresponding quarter last year.
For the first half of FY27, revenue declined 9.8% year-on-year to ₹3,404 crore.
The agrochemicals business reported a 10% year-on-year decline in revenue, while sequentially revenue was down 1.3%. The weakness was largely driven by an 18% decline in agrochemical exports amid subdued global demand. However, domestic revenue registered 19% growth.
In contrast, the pharmaceutical business reported a stronger performance, with revenue increasing 19.7% year-on-year and 40% sequentially.
The company’s gross margin declined to 49% from 57% in the year-ago quarter, impacted by a 5% increase in input costs and continued pricing pressure. PI Industries said it had not been able to actively pass on higher costs to customers in the current market environment.
Overheads also increased despite lower revenue, reflecting continued investments in research and development (R&D), new businesses and product development, along with higher energy costs.
On a positive note, global biologicals revenue grew more than 250%, while domestic biologicals revenue increased over 45%. Health Sciences revenue registered 20% year-on-year growth, supported by the commencement of commercial good manufacturing practice (GMP) manufacturing of Galidesivir API.
Management commentary and outlook
PI Industries’ management expects growth to accelerate, supported by new product launches, firmer crop prices and continued traction in biologicals.
The company is targeting the commercialisation of more than five products in FY27, which are expected to support its growth ambitions. Management also highlighted that it is prioritising farmer confidence and product performance before scaling up Pioxazon.
The company had earlier guided for single-digit revenue growth for FY27. However, the sharp decline in first-half revenue and continued weakness in agrochemical exports remain key monitorables for the second half of the financial year.
Shares of PI Industries are trading 15% lower on Thursday at ₹1,858.9. The stock is down 43% so far in 2026.
PI Industries shares fall 15% after sharp margin contraction in Q2; weak agri exports drag earnings