Company Update : Pi Industries Ltd by Motilal Oswal Financial Services Ltd
Operating performance above our estimates
* Revenue stood at INR18.7b (est. INR17.7b), down 16% YoY.
* Agrochemicals business revenue was down 17% YoY to INR18.1b, while pharma business revenue was up 54% YoY to INR634m.
* EBITDA stood at INR5.4b (est. INR4.3b), down 14% YoY.
* EBITDA margins contracted by 60bp YoY to 28.9% (est. 24.5%); gross margins: 57.3% (up 550bp YoY); employee expenses up 300bp YoY to 11.8%; other expenses up 190bp YoY to 16.6% of sales.
* The EBIT margin for the Agrochemical business was 32.6% (down 30bp), while Pharma posted an EBIT loss of INR819m vs. an EBIT loss of INR551m in 2QFY25.
* Adj. PAT was down 19% YoY to INR4.1b (est. INR3.3b).
* For 1HFY26, the company’s revenue/EBITDA/adj. PAT dipped 12%/12%/15% to INR37.7b/INR10.6b/INR8.1b.
* Gross debt stood at INR1.8b as of Sept’25 vs INR1.1b as of Mar’25. Further, CFO stood at INR2.5b as of Sep’25 vs INR8.0b as of Sep’24.
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SEBI Registration number is INH000000412
