PI Industries Ltd. share price target

PI Industries is likely to remain in a transition phase through FY27, with the pace of recovery in global agrochemical and CSM demand being the key determinant of earnings momentum.

PI Industries (PI) reported a weak quarter as revenue declined 10% YoY, primarily due to a 13% YoY dip in the CSM business, attributed to muted global agrochemical demand and continued pricing pressure.

PI Industries is expected to report Q1 FY27 revenue of INR 18,444 Mn, implying a 3% YoY decline. Export revenues are expected to remain broadly flat to decline in the low single digits amid a subdued global demand environment. The domestic business could face some pressure from the delay in monsoon, which may impact crop-sowing activity and agrochemical demand.

PI Industries Limited manufactures plant protection and specialty plant nutrient products and solutions under its agri-inputs business. It is also a leading custom synthesis and manufacturing (CSM) company in India, providing contract research and contract manufacturing services to global innovators. Consolidated revenue fell 12.4% YoY to Rs. 1,565cr in Q4FY26 amid global agrochemical downcycle and just-in-time buying plus export delivery scheduling and domestic demand faced inventory-led pricing pressure. Agro chemic mal segment revenue decreased 14.2% YoY to Rs. 1,461cr mainly due to weaker agchem export shipments amid a global industry contraction, while domestic revenues softened due to elevated channel inventories. Pharma segment grew 23.3% YoY to Rs. 105cr in Q4FY26, aided by new...

Quarterly Update Q4FY26

We expect the company to grow its Revenue/EBITDA/PAT at a CAGR of 11.9% / 15.1% / 10.5% for the period of FY26-FY28E. The company is currently trading at 26x FY28E and we value the company at a PE of 28x FY28E EPS, implying a target price of INR 2,976 with the upside of 6.3%.

We upgrade our rating to BUY from HOLD on the stock.

PI Industries (PI) reported a weak quarter as revenue declined 28% YoY, primarily due to a 32% YoY dip in the CSM business, attributable to global slowdown and cautious customer scheduling (volume declined 29% YoY).

EBITDA margin guidance of 2526% has been maintained for FY26. YoY and 27% QoQ decline. The CSM segment, which contributed ~77% of total demand from customers. This segment is expected to recover from Q4FY26. New products launched in the last 3years showed just 10% YoY growth in 9MFY26 and degrowth in Q3FY26. The domestic agchem branded business also...

Near-term growth is expected to remain soft as global agrochemical demand recovers gradually and customer destocking extends into the next few quarters.

We maintain our HOLD rating on the stock.

PI Industries (PI) reported a muted quarter as revenue declined 16% YoY due to 13%/18% YoY drop in domestic agrochem/CSM revenue.

Quarterly Update Q1FY26

We have revised our FY26E/FY27E EPS estimates by -4.4%/-9.0% factoring in a miss in Q1FY26 performance, slower-than-expected recovery in exports due to prolonged customer destocking, and regulatory headwinds in biologicals that have curtailed domestic growth.

We downgrade our rating from BUY to HOLD on the stock as the challenges are expected to continue in the near term, and we await clear signs of a sustained recovery.

*over or under performance to benchmark index PI Industries manufactures plant protection and specialty plant nutrient products and solutions under its agri-inputs business. It is also a leading custom synthesis and manufacturing (CSM) company in India, providing contract research and contract...

Kumiai Chemical Industry (Kumiai) has revised up its H1FY25 revenue guidance by ~9% to JPY96bn from JPY88bn, citing that net sales are expected to exceed the forecast due to advanced shipment to overseas markets in its Agchem business.

Quarterly Update Q4FY25

We maintain our BUY rating on the stock.