PIINDNSEQ2 FY26September 30, 2025

PI Industries Limited

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Key numbers — 30 extracted

driving a gradual normalisation of inventory levels. Most of the global innovators have reported 3% to 5% decline in H1 revenue with a guidance of cautious volume led recovery in the second half.

ng a gradual normalisation of inventory levels. Most of the global innovators have reported 3% to 5% decline in H1 revenue with a guidance of cautious volume led recovery in the second half. On th

1.2 million

ogicals and fertiliser shortfall, etc, played a spoilsport to the growth momentum in Kharif. Over 1.2 million acres of crops were damaged in Punjab and Maharashtra due to excessive rains and consequent flood

38%

growth of new products commercialised over the last three years has registered a decent 38% Y-o-Y growth in H1. We remain on track to commercialise 8 to 10 new molecules in the current fisc

54%

scheduled for future development and registration. During the quarter, our pharma business showed 54% Y-o-Y revenue growth. We onboarded new customers and continue to build pipeline with our BD teams

Rs. 18,723 million

ve market scenario in H2. To share the performance highlights for Q2 FY26, we reported revenue of Rs. 18,723 million, a 16% decline from the high base of the same period last year and a 1% sequential decline. On a

16%

. To share the performance highlights for Q2 FY26, we reported revenue of Rs. 18,723 million, a 16% decline from the high base of the same period last year and a 1% sequential decline. On a 3-year

evenue of Rs. 18,723 million, a 16% decline from the high base of the same period last year and a 1% sequential decline. On a 3-year CAGR basis, the growth in Q2 is 2% as we had registered a growth

he same period last year and a 1% sequential decline. On a 3-year CAGR basis, the growth in Q2 is 2% as we had registered a growth of 5% in Q2 FY25 and 20% in Q2FY24, making it a high base. On an

20%

On a 3-year CAGR basis, the growth in Q2 is 2% as we had registered a growth of 5% in Q2 FY25 and 20% in Q2FY24, making it a high base. On an H1 basis, there is a 12% decline in revenue, which is bro

12%

a growth of 5% in Q2 FY25 and 20% in Q2FY24, making it a high base. On an H1 basis, there is a 12% decline in revenue, which is broadly in line with plan except for domestic revenues, which were i

were impacted due to excessive rainfall and abrupt regulatory actions. We have delivered on an H1 8% 3-year CAGR basis, which continues to outbeat the industry. We have commercialised 5 new produc

Guidance — 20 items

Nishid Solanki

opening

“Thereafter, the forum will be open for an interactive question-and-answer session.”

Mayank Singhal

opening

“FY26 is expected to see a modest recovery in Q4, a full recovery is not expected to realise before 2nd half of 2026 or later.”

Mayank Singhal

opening

“Most of the global innovators have reported 3% to 5% decline in H1 revenue with a guidance of cautious volume led recovery in the second half.”

Mayank Singhal

opening

“During Q2 FY26, our performance is broadly reflecting current market conditions and in line with our plan except for the domestic market where excessive and uneven rainfall and abrupt regulatory actions in the biological areas impacted the demand scenario.”

Mayank Singhal

opening

“As explained before, we have built this transitional softness into our FY26 plan.”

Mayank Singhal

opening

“We remain on track to commercialise 8 to 10 new molecules in the current fiscal, having commercialized 5 in H1.”

Mayank Singhal

opening

“On the Domestic side, we have seen a 5% Y-o-Y decline during H1 FY26.”

Mayank Singhal

opening

“We introduced three new brands in the first half of the year and plan to launch an additional three products later this year.”

Sanjay Agarwal

opening

“Back home, in Q2, uneven rains created huge crop losses, impacting our key focus crops; however, we expect better rabi seasons, and an increase in rice and corn acreages should lead to a positive market scenario in H2.”

Sanjay Agarwal

opening

“To share the performance highlights for Q2 FY26, we reported revenue of Rs.”

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Risks & concerns — 15 flagged

Most of the global innovators have reported 3% to 5% decline in H1 revenue with a guidance of cautious volume led recovery in the second half.

— Mayank Singhal

On the AgChem exports side, we have seen a decline that is in line with customer delivery schedules to balance overall inventory levels.

— Mayank Singhal

On the Domestic side, we have seen a 5% Y-o-Y decline during H1 FY26.

— Mayank Singhal

Although our pharma business is modest, with significant headroom for growth, there is a slowdown in biotech funding and geopolitical challenges that are impacting the conversion of proposals in the pipeline.

— Mayank Singhal

18,723 million, a 16% decline from the high base of the same period last year and a 1% sequential decline.

— Sanjay Agarwal

On an H1 basis, there is a 12% decline in revenue, which is broadly in line with plan except for domestic revenues, which were impacted due to excessive rainfall and abrupt regulatory actions.

— Sanjay Agarwal

Decline in AgChem Exports business is primarily volume-led, driven by slow demand and customer delivery schedule deferments.

— Sanjay Agarwal

We also anticipate a recovery in our domestic and agchem exports, particularly in Q4, to offset the decline in revenue and profitability in the first half.

— Sanjay Agarwal

How would you look at your H2 given such a sharp decline in the first half?

— Saurabh Jain

So, as we mentioned in the earlier part of our call today, due to the climatical challenge the expected growth rate have not kept up to the mark in H1.

— Mayank Singhal

But again, I must put a cautious view to say that today looking at the climatical situations, it will be very much dependent on that but the positivity water levels gives us a positive outlook for Rabi.

— Mayank Singhal

If I may just rephrase it, do you think there is enough merit in this business because the pressure that CTPR has been witnessing in the Indian market, if they kind of take back their stocks or if they look to exit the Indian market, does it at least help the competitors or the peers in India get into more market share opportunities?

— Saurabh Jain

And yet there does seem to be some headwinds from the biotech slowdown, funding slowdown and those sorts of things.

— Abhijit Akella

Just to clarify on the domestic biologicals business, could you split out what would have been the impact of the regulatory changes from this quarter revenue perspective?

— Tejas Pradhan

On the Domestic business, we expect a good Rabi, but I would put a cautious statement given the fast-changing weather conditions.

— Mayank Singhal

Q&A — 16 exchanges

Thank you for the opportunity. My first question is on the guidance. You were vocal about saying that you expect a mid-single-digit kind of a growth possibility for this year. How would you look at your H2 given such a sharp decline in the first half? If you could give us more details around what kind of growth you are expecting in your exports, your domestic and your pharma business for the remainder of the year?

Mayank Singhal

So, as we mentioned in the earlier part of our call today, due to the climatical challenge the expected growth rate have not kept up to the mark in H1. But as we see, at least in the Domestic and Exports, there are early shoots of a positive trajectory. Clearly, we see good potential for the H2 from the Rabi season, given the reservoir levels. But again, I must put a cautious view to say that today looking at the climatical situations, it will be very much dependent on that but the positivity water levels gives us a positive outlook for Rabi. I mean, on the export side, what we understand is t

Thank you very much sir. So just on the cash flow statement, there is a significant increase in contract assets of about INR 450 crore, if you could please just specify what that might be due to?

Sanjay Agarwal

As you know, the increase in contract asset is in line with the customer delivery schedules, which are lined up for H2. And those are recorded in accordance with the accounting standards. So, there has been an increase but this is keeping in line with the customer delivery schedule, which is arising again from the global agrochemical industry situation today. So yes, if you could please just help me understand the accounting here. I mean, what exactly does this asset represent on the balance sheet? So, these are the finished goods, what we have produced, which is to be delivered to the custome

Thanks for the opportunity. So, first question is, what has been the contribution of new CSM products in the overall CSM revenues during the first half of this financial year?

Mayank Singhal

So, as we mentioned, we do not have the numbers here, but I think we have delivered about a 38% growth on new products over the last year. Right. Fair enough. Second, on the biologicals front. So, on PHC, we have just indicated that we have about $10 million to $12 million of revenues. When do we see a significant scale up in this opportunity? Would it be more like FY28 given that there are multiple registrations, which are currently ongoing across different markets? And what could be the potential sometime maybe FY28-29 from this biologicals acquisition? Jagresh, would you like to comment tha

Yes, thank you for the opportunity. First one is on the newly commercialized products. So, we can see that there are 5 new products, which we have commercialized in H1 FY26. And I am sure there will be a couple of products planned in the 2 quarters, which are expected to come. What I wanted to understand was what is the agri versus non-agri mix in these newly commercialized products, be it H1 or coming H2?

Sanjay Agarwal

Yes, these are primarily in the agri side of the business So, it will be 100% on the agri side? Or are we looking at something. So, the reason why I am asking this question is just wanted to understand how are we progressing on the diversification aspect of the CSM business? In the CSM business, there have been a few products commercialized, and it takes about 3 to 5 years to really get to the ramp-up stage. So just to give you a sense of what it takes because you get into the evaluation, you get into the early stage and as the molecules pick up, then values go up. Atul can explain that how ma

Thank you for the presentation. Apologies if this was addressed in the previous questions. But just wanted to clarify where exactly are we with respect to the regulatory challenges that you were alluding to on biological? Have we seen the resolution for that or that would continue for maybe one more quarter? And in that case, how should we think about the scale-up of the biologicals segment in the next 2 quarters and potentially fiscal 2027? That is the first question.

Mayank Singhal

So if you look at it from what was mentioned earlier for the Indian regulatory context, there has been disruptions. We are expecting to see in this coming quarter or the next quarter for that to wind down and get sorted. Regarding the global perspective, Jagresh gave an outlook earlier. Sure. Just one clarification there. I think in the previous quarter, you mentioned that because of this, you could not make any sales in the previous quarter. Would it be fair to say that at least we started to see some traction come back? Or that is still some time away? Yes. As you know, there was ban put on

Yes. Hi, sir. Just to clarify on the domestic biologicals business, could you split out what would have been the impact of the regulatory changes from this quarter revenue perspective?

Sanjay Agarwal

So, for most part of the first half of the year, the business was under restricted category and then post that, as Mayank mentioned, we are still in the process of getting approvals at the state level to restart the sales. So yes, it has impacted significantly, and that is why you are seeing the overall agri business being significantly down in this quarter. To be honest, we do not have that exact number on hand but maybe you could take it from Sanjay later. Sure, sure. No problem. And apologies if this was clarified earlier, but just on the FY26 overall guidance, we still maintain the guidanc

Yes. So, my question is regarding Pharma business loss in H1. And when we can see a positive trajectory in the coming year? And what is the key molecule development happening in that segment where we can see momentum and profitable growth.

Rajnish Sarna

Yes. As we explained, we are currently in the investment phase. And we expect that this phase will continue for another year or so. And we expect that in next 1 year, we will reach to a scale that will be able to sustain and maintain profitable growth and also achieve positive EBITDA. My question regarding CSM. We have seen a muted performance in Q2 in CSM segment. How you are talking about recovery going forward. So, can we see some single-digit growth in Q3, Q4? As we have already guided that we anticipate recovery from Q4FY26 and accordingly, this whole year will pan out. So, we will see gr

Yes. Thank you for taking my question team. I just had one question What is giving us the confidence of the recovery that we are anticipating in the fourth quarter?

Mayank Singhal

That is coming from what we see from the feedback from our customers.. Got it. Okay. So, this is maybe a schedule, a tentative schedule shared by the customer, which is driving the confidence? Yes. Got it. Okay. That is all. Thank you.

Yes. So, I am referring to the presentation where there has been a mention of PI's own NCEs and there is been good progress and forward movement on that. So, is there some additional color or light you can shed on these initiatives and if you can tell us how we are placed and sort of some kind of timeline with respect to the future? And second question is with respect to the cash position. Is this sort of a level that we are comfortable with? And how do we see that playing out? Or what is the plan with respect to future cash flows?

Rajnish Sarna

For our new NCE, we are on track for the first registration in India. While we are waiting for it, we have also gone ahead with a large number of field trials in India and working on product development in that direction. As regards cash flow question, yes, we are right now evaluating several inorganic opportunities in the domestic and also in other technology areas outside India as well. But at the same time, given the kind of uncertainties in the general business environment, we are not in a hurry to deploy the available cash. We are happy to sit on cash and looking for the right set of oppo

Just one clarification on that contract asset piece. So, from an accounting perspective, is the revenue already booked in this quarter and that is the asset that is sitting on the balance sheet?

Rajnish Sarna

Yes, the revenue has been recorded. This is not the first quarter that we are talking about contract assets. It has increased in the recent quarter mainly because of deferment of customer delivery schedule. So, there is nothing new about it. Sure. So, I just wanted to clarify that for my understanding. Thank you so much. All the best.

Thank you so much for your time. Sir, two questions. The first one is on the Pharma CDMO business, which you are looking to grow. As we understand, looking at many of your peers in India as well, it is slightly a longer gestation business. Just wanted to understand where we are in that journey in terms of building up the pipeline. And if you could give some color in terms of how many projects we are addressing and how many are in Phase I, Phase II, Phase III? If you could give some color there on our sort of pipeline, that will be helpful to understand the business better. Ramesh Subramanian:

Madhav Marda

Understood. So currently, how many Phase III programs do we have? In terms of late-stage programs, we have six. Six late stage. So, I mean, usually, late-stage in the industry is Phase III or late Phase II, something like that is how we should also look at that? Ramesh Subramanian: Yes, Phase I, Phase II. Phase II, Phase III. Got it. Okay. Perfect. Understood. And there are no commercial programs yet, right, for us. We are doing more like pipeline development work. There is no commercialized molecule yet in our revenue. Ramesh Subramanian: We have quoted on some. Quoted on some. Okay. So, this

Just one from my side. I think, Mayank, you mentioned that you have offtake visibility from Q4 FY26. So, in that context, can you guide us for the order book status for FY27 and probably result in CSM growth in FY27?

Rajnish Sarna

Yes. We will not have order book positions for year-wise – FY27 or FY26 or something like this. We generally keep track on the overall order book position, which is around $1.25 billion as of now. I think it is too early to guide you for FY27. We still have to see how the inventory restocking and normalization happens in the next 2 quarters. But yes, we will surely guide you sometime in the fourth quarter around what is our visibility for FY27. Okay. And just one clarification. I think we have stopped giving the overheads and the gross margin for the Pharma segment from this quarter. Can you p

Thanks for taking my question. I think all my questions have been answered broadly. Last one thing. If I look at the gross margin, so that has increased by roughly about 500 bps. So, is it because of lower inventory that have helped in terms of getting the gross margin? Or was there only the product mix that you have talked about earlier?

Rajnish Sarna

Well, it is primarily because of product mix. And as we have explained in past also that every quarter, you will have variability in the product mix. On a longer-term basis, as we have guided in the past, 50% to 52% gross margin is what we believe is a sustainable level. Understood. And one last clarification in terms of CSM order book that you have mentioned. So that is $1.25 billion that you have said, right, as of Q2? Yes. Okay. Thanks.

Thank you so much for taking my follow-up. Just to understand this -- the point about the contract assets one last time. I am sorry, it was a bit unclear in the past. So, this is basically revenue that we have recognized but the billing has not been made to the customer. Is that basically how it is?

Mayank Singhal

Yes. Okay. And how do we make the decision regarding when to shift it from, say, inventories to contract assets? Because I guess we would have the choice of keeping the inventories as well. No, accounting is not done by choice. Accounting is done according to accounting standards. So, if we have produced inventory exclusively for a customer and we have an order in place, accounting for revenue recognition has to be done that way. Okay. So, the increase in this line item is largely because certain large deliveries have gotten deferred in the recent past. Yes. Okay. Got it. And just last thing o

Thanks for the follow-up. On the biologicals front, when do we expect the margins to converge to the business level margins at, say, 25% plus/ minus?

Rajnish Sarna

Well, as I explained, biologicals for us is a global long-term play. And we are right now in the investment phase. We have a very small-scale revenue of around $12 million. So, while you will see that we will be growing at a very high rate, we will be investing in the market and product development for the next couple of years. So, my view is that as far as margins are concerned, for next few years, we should only be focusing on scaling up this business and not looking at margins. I hope this clarifies. Also, let me add that biologicals for this industry is going to be the next growth driver.

Thank you once again for joining this call of PI Industries and look forward to connecting with you. Thank you for all your support.

Management

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Speaking time

Mayank Singhal

Rajnish Sarna

Moderator

Abhijit Akella

Sanjay Agarwal

Madhav Marda

Rohit Nagraj

Saurabh Jain

Navid Virani

Vivek Rajamani

Opening remarks

Nishid Solanki

Thank you. Good morning, everyone, and thank you for joining us on PI Industries’ Q2 FY26 Earnings Conference Call. Today, we are joined by senior members of the management team, including: • Mr. Mayank Singhal, Executive Vice Chairperson and Managing Director • Mr. Rajnish Sarna, Joint Managing Director • Mr. Sanjay Agarwal, Group Chief Financial Officer • Dr. Atul Gupta, CEO, CSM AgChem • Mr. Prashant Hegde, CEO, AgChem Brands • Dr. Ramesh Subramanian, Global CEO, PI Health Sciences, and • Mr. Jagresh Rana, Global CEO, Biologicals We will begin the call with key perspectives from Mr. Singhal. Following that, Mr. Agarwal will take us through his views on the financial performance. Thereafter, the forum will be open for an interactive question-and-answer session. Before we begin, I would like to underline that certain statements made on today's conference call may be forward-looking in nature. A disclaimer to this effect has been included in the investor presentation shared with you ea

Mayank Singhal

Thank you, and good morning, everyone. Let me begin by sharing my views on the global agchem industry scenario and then the performance of PI in this context. The global crop protection has been passing through a prolonged down-cycle driven by distributor/ farmer destocking, sharp price deflation from Chinese overcapacity, low commodity prices, rising interest rates and on top of all this, weather disruptions that cut sprayings in several regions. FY26 is expected to see a modest recovery in Q4, a full recovery is not expected to realise before 2nd half of 2026 or later. The silver lining is that input prices are stable, and volume increase is driving a gradual normalisation of inventory levels. Most of the global innovators have reported 3% to 5% decline in H1 revenue with a guidance of cautious volume led recovery in the second half. On the domestic side, Q2 witnessed erratic and prolonged rains, which negated the positive start to the Kharif season. While we have seen largely a favo

Sanjay Agarwal

Thank you, Mr. Singhal. Good Morning everyone. I will summarize the Company's financial highlights for the quarter ended September 30th, 2025. We have been delivering resilient performance amid headwinds in the global agrochemical industry, driven by factors such as low commodity prices, rising interest rates, inventory destocking, and extreme weather challenges. This demand softness has been coupled with excess capacity in China, causing value erosion, particularly in the generic products. Back home, in Q2, uneven rains created huge crop losses, impacting our key focus crops; however, we expect better rabi seasons, and an increase in rice and corn acreages should lead to a positive market scenario in H2. To share the performance highlights for Q2 FY26, we reported revenue of Rs. 18,723 million, a 16% decline from the high base of the same period last year and a 1% sequential decline. On a 3-year CAGR basis, the growth in Q2 is 2% as we had registered a growth of 5% in Q2 FY25 and 20%

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