PI Industries Limited Earnings Summary — Q1 FY2027
PI Industries Faces Revenue Pressure Amidst Global AgChem Cyclicity While Advancing Pharma Diversification
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹1,702 Cr is 10.4% lower year-on-year.
- Revenue has compounded at -1.0% annualised over the last 10 quarters.
- Net profit of ₹244 Cr is 38.9% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -16.8% annualised across the period.
- Operating margin stands at 21.6% in Q1 FY2027.
- Operating margin compressed by 573 bps year-on-year.
- Over the last two years operating margin has contracted by 661 bps.
- PBT margin is 18.9%.
- Expenses grew -3.4% against revenue growth of -10.4%.
- Operating profit of ₹367 Cr is 29.2% lower year-on-year.
- Operating leverage has been under pressure recently.
- 1 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 44/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,702 | 1,565 | 1,376 | 1,872 | 1,901 | 1,787 | 1,901 | 2,221 | 2,069 | 1,741 |
| Expenses | Stable | 1,335 | 1,228 | 1,073 | 1,331 | 1,381 | 1,332 | 1,389 | 1,593 | 1,486 | 1,299 |
| Operating Profit | Stable | 367 | 337 | 302 | 541 | 519 | 456 | 512 | 628 | 583 | 442 |
| Operating Margin | Stable | 21.6% | 21.5% | 22.0% | 28.9% | 27.3% | 25.5% | 26.9% | 28.3% | 28.2% | 25.4% |
| Other Income | Volatile | 66 | 74 | 172 | 85 | 89 | 75 | 76 | 123 | 75 | 60 |
| Interest | Volatile | 8 | 4 | 6 | 3 | 4 | 8 | 8 | 9 | 8 | 11 |
| Depreciation | Improving | 104 | 107 | 105 | 98 | 97 | 90 | 99 | 80 | 83 | 80 |
| Profit Before Tax | Stable | 322 | 301 | 363 | 525 | 507 | 432 | 481 | 663 | 566 | 411 |
| Tax | Volatile | 78 | 100 | 52 | 116 | 107 | 102 | 108 | 155 | 118 | 42 |
| Net Profit | Stable | 244 | 200 | 311 | 409 | 400 | 331 | 373 | 508 | 449 | 370 |
| Net Margin | Stable | 14.3% | 12.8% | 22.6% | 21.9% | 21.1% | 18.5% | 19.6% | 22.9% | 21.7% | 21.2% |
Key Takeaways
- Consolidated revenue for Q1 FY27 declined 10.4% YoY to ₹17,023 million, reflecting continued industry-wide cyclicity in the agrochemical sector.
- Net profit saw a sharp YoY contraction of 39%, though it recovered 22% sequentially from the previous quarter.
- The Pharma segment remains in a gestation phase, reporting a segment loss of ₹816 million for the quarter compared to a loss of ₹760 million in the same period last year.
- Agrochemical segment margins compressed significantly to 23.3% from 30.9% YoY, indicating pricing pressure or unfavorable product mix.
- The company approved the incorporation of 'PI Foundation' as a wholly-owned subsidiary for CSR activities.
- Consolidated finance costs spiked to ₹79 million from ₹39 million YoY, reflecting increased short-term liquidity requirements.
- Cash flow hedges showed a positive total comprehensive income impact of ₹371 million net of tax, partially offsetting operational declines.
Management Guidance
Management remains focused on the long-term strategic pivot into high-value pharmaceutical intermediates and contract research to reduce reliance on cyclical agrochemicals. Despite current headwinds in global agrochemical demand, the company maintains its long-term outlook for PI Health Sciences (PIHS) and is optimizing its global business development team.
Sentiment Shift
Deteriorating
The YoY decline in both top and bottom lines suggests the global destocking cycle and pricing pressures in AgChem are impacting PI more severely than in prior quarters, while the Pharma segment continues to drag on profitability.
Outlook
The outlook remains cautious in the short term due to high working capital cycles (spiking to 192 days historically) and global demand volatility. Recovery hinges on the stabilization of the CSM order book and the successful scale-up of the Pharma segment towards breakeven.
From the Annual Report (Key Quotes)
“The management remains confident about the long-term business prospects of PIHS.”
“The Company is in the business of manufacturing and distribution of Agro Chemicals and accordingly has one reportable business segment [for standalone].”
“Considering the performance... the Company renegotiated a mutually beneficial one-time settlement... resulting in a write-back of contingent consideration.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from PI Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.