PI Industries Ltd. share price target

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.

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.

*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...

Quarterly Update Q4FY25

We maintain our BUY rating on the stock.

Quarterly Update Q2FY25

We upgrade our rating on the stock from HOLD to BUY considering attractive valuations post the recent correction in stock price while long-term growth prospects remain intact.

Based on our estimates, PI Industries is valued at 30x FY26E, with a target price of Rs 4,980 per share. This implies an upside potential of 6% from the CMP, with a HOLD recommendation.

Quarterly Update Q1FY25

We maintain our BUY rating on the stock.

PI Industries’ (PI) revenue for the quarter reached Rs. 2,069 crore, reflecting an 8% y-o-y increase
and a 19% q-o-q rise, 2% above expectations.

PI Industries has offered to acquire UK based listed company Plant Health Care Plc (PHC) for a sum of £32.8 million which is in the agriculture biological space. It has experience in protein/peptide technology.