PI Industries

“Yes, I would say we have said we look at a flattish approach given the external dynamics and as you can see the whole industry trend”

“So, I believe the investments have come to a saturation capacity to take care for the next 2-3 years in the agchem sector. We are now building capacities in the other new engines of growth that we are adding to the point and that is where the capex will go.”

“The center of excellence to support drug discovery at Hyderabad is up, the new QC lab in Lodi commissioned and certified, and the kilo lab is completing by the end of the year.”

“In the electronic and specialty chemicals, customer engagements are deepening, commercialization is progressing, the kilo lab at Udaipur will be operational by the”

“Order book position is around USD 1.25 billion.”

“Well, that is the order based on a contract value. So that is what is called the book. Now, during the contract, things can swing and change.”

“Moving on to the business performance, Ag Chem exports declined by 18% during the period.”

“Moving to domestic Agri, the business delivered another strong quarter with 19% growth through crop reach and product portfolio.”

“Our focused approach on biologicals delivered healthy growth of 45%, which accounts for 18% of the Agri domestic portfolio.”

“We are expanding our distribution network across Brazil, Mexico, Spain and the US, achieving 3x increase in distribution width. The revenue grew by 250%+ year-on-year, supported by registrations, commercial expansion and extensive field activities efforts across key geographies.”

“Our pharma business grew 20% year-on-year supported by deepening engagement with customers showing early shoots and building development & manufacturing capabilities.”

“Good Question, I think as you would understand the external pressures both in the consumption pattern and the pricing cost economics, the adaptability also gets slow for new products.”

“I see pressure in the next couple of quarters but I think by the end of the next financial year, I am already seeing certain green shoots with certain volume pickup in demand which we are seeing from our partners.”

“Going into rabi, soil moisture and reservoir levels are below last year in several rain-fed belts, so we are planning for a cautious Rabi and will respond to how the season actually develops.”

“Turning to the global crop protection market, channel stocks are back to normal levels, and that part of the correction is behind the industry.”

“On the brighter side, prices of major commodities have firmed up from their lows, which, if sustained, points to better farm economics in the next season.”

“We remained focused on driving volume growth post-genericization through price optimization while cost escalation could not be passed through in this current market conditions.”

“Turning to a margin profile, the moderation in gross margins was primarily driven by higher input costs by 5% and pricing pressure due to El Nino and genericization. These are cyclical input cost headwinds rather than structural issues.”

“Our core overhead remains tightly controlled with continued investments in development of new businesses by 6% and R&D 2%, besides increase in energy cost by 3%.”

“Further, we continue to invest 3% to 4% of our revenue in R&D, which are fully charged to the P&L.”

“Yes, it is primarily pharma and biologicals. Biologicals as you would see that we have taken up to expand in 3 geographies, which is US, Brazil, Mexico and which are not cheap,”

“Keeping business hygiene a priority, we reduce net working capital by 18 days, releasing Rs. 298 crores of cash as at quarter end.”

“Strong operating cash flow generation of Rs. 9.1 billion versus Rs. 2.3 billion year- on-year supported by focused working capital management”

“We ended the quarter with a healthy net cash position of Rs. 36 billion to support our strategic investments in multiple growth platforms while maintaining financial resilience.”

“During the quarter, we added three new CSM molecules commercialization and continue to advance initiatives in differentiated technologies including electronic and Specialty Chemicals.”

“Well, yes, we are looking to expand beyond these 3 crops. Clearly, as you would see, we have done a lot of effort of developing this product. We are going to be putting it out into the market in this month.”

“Pioxaniliprole branded as Pioxazon, our first new chemical entity has received a registration in India and has been launched as Pioxazon:”

“Some of them we should be hopefully filing the regulatory piece in the next year or two and I think next 2-3 years we may see some of them fortified for going into the market.”

“Yes, so the company is continually evaluating what we can do in that space. And as and when we come up with some opportunities, we will be definitely looking at those ideas.”

“So I think the stabilization should take place in a couple of years, but what we are continuing to do is to hold the volumes, the market share and with that price point it is obvious to spread the volume to grow.”

“In India, the season was defined by the weakest monsoon in over a decade with prolonged dry spells, delayed sowing and, as a result, lower pest pressure. Kharif acreage was flat and the season was lacklustre.”

“So, if we can continue to maintain a certain price to develop them, that is what is called the pricing pressure on the product, even on innovation spaces, because innovation in Ag needs to come out with a value proposition.”

“The environment remains hard: subdued crop economics, elevated input costs, genericization arriving faster than the industry expected and pricing pressures across the board.”

“In this backdrop, Q2 FY27 consolidated revenue stood at Rs. 17,018 million, declining 9% year-on-year and gross margins at 49% with EBITDA at 14%.”

“now I am proud to say, with our investment in R&D beginning 12 years ago, we are now India's first and only agchem innovator.”

“Our core business remains strong. We will plan conservatively, protect our cost positions, keep the balance sheet strong and keep investing in building our future moats.”