PI Industries Ltd (BOM:523642) Q3 2026 Earnings Call Highlights: Strong Pharma Growth and …

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Fri, February 13, 2026 at 8:00 PM GMT+9 3 min read

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**Revenue:** INR 13,757 million for Q3 FY26.

**Gross Margin:** Expanded to 59% during the quarter.

**EBITDA Margin:** 27% for the nine-month period.

**Net Profit:** Includes an exceptional income of INR 1,260 million from Pharma business write-back, offset by INR 209 million provisioning for retirement benefits.

**Trade Working Capital:** Increased to 139 days of sales.

**Net Cash Position:** INR 35 billion, indicating a debt-free balance sheet.

**Pharma Revenue Growth:** Increased by 50% over nine months compared to the previous year.

**New Molecules Commercialized:** Five in AgChem Exports and four in domestic Agri-brands.

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Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

PI Industries Ltd (BOM:523642) reported a 50% year-on-year growth in its Pharma platform, driven by deepening relationships with biotech and big pharma innovators.

The company has commercialized five new molecules in AgChem Exports and four in domestic Agri-brands, demonstrating a strong focus on innovation.

PI Industries Ltd (BOM:523642) has launched a direct-to-farmer mobile app, PI Mitra Kisan, enhancing farmer engagement and offering crop advisory, product guidance, and loyalty benefits.

The company improved its S&P Global Corporate Sustainability ranking to the 98th percentile, highlighting its commitment to sustainability.

PI Industries Ltd (BOM:523642) maintains a debt-free balance sheet with net cash of INR35 billion, providing strong resilience and flexibility for strategic investments.

Negative Points

The global Crop Protection market is experiencing a prolonged downcycle due to adverse weather conditions, soft commodity prices, and elevated interest rates, impacting PI Industries Ltd (BOM:523642)'s performance.

Domestic agrochemical demand remains subdued due to high channel inventory and low commodity prices, affecting the company's revenue.

The company's trade working capital has increased to 139 days, reflecting current market conditions and posing a challenge to liquidity management.

PI Industries Ltd (BOM:523642) faces near-term momentum moderation in its Pharma platform due to global biotech funding uncertainties.

The company is experiencing a compression in price realization across its portfolio, impacting overall profitability.

Q & A Highlights

Q: When you mention growth resuming in the fourth quarter, are you referring to sequential growth or year-over-year growth? Is this growth in volume or revenue? A: Sanjay Agarwal, Group CFO, explained that there will be a volume growth starting in Q4 FY26, with sequential growth over Q3. The momentum is expected to pick up significantly in FY27.

Story Continues  

Q: Can you provide guidance on gross margins, given the consistent improvement? A: Mayank Singhal, Executive Vice Chairman and Managing Director, stated that while quarter-to-quarter variations exist due to product mix, they aim to maintain gross margins between 50% to 53%. Sanjay Agarwal added that the focus should be on EBITDA margins, which are expected to be around 25% to 26% for the year.

Q: What is the status of the Plant Healthcare business and its integration with PI Industries? A: Jagresh Rana, CEO of AgSciences, highlighted significant progress in expanding distribution networks in Brazil, Mexico, and the US. New products have been launched, and regulatory approvals are being pursued, with a strong focus on scaling the business globally.

Q: Could you update us on the contract assets on the balance sheet and their expected trajectory? A: Sanjay Agarwal mentioned that contract assets are around INR1,065 crore this quarter, up from INR900 crore last quarter. They expect these to reduce by year-end as market conditions normalize.

Q: What are the plans for CapEx in FY27, and how will it be allocated? A: Mayank Singhal indicated a planned CapEx of INR500 crore to INR600 crore, with details to be finalized post Board approval. The focus will be on strategic investments across various business verticals.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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