PI Industries shares plunged 10% to hit a 52-week low of ₹2,458 on Wednesday, falling below its previous low of ₹2,527.30 touched on July 14, 2026. The stock corrected 37% from its 52-week high of ₹3,916 hit on August 25, 2025, amid heavy trading activity with average volume jumping over nine-fold with 2.1 million equity shares changing hands on NSE and BSE till 02:58 PM. The sharp decline reflects investor disappointment over the company's disappointing June quarter results that missed Street estimates across key parameters. According to CNBC TV18, the results were significantly worse than expected, with revenue declining 10% year-on-year compared with expectations of a 5% decline, while EBITDA fell 34% against the estimated 16% drop.
Gurugram-headquartered PI Industries reported a 39% year-on-year decline in consolidated profit for the quarter ended June 30, 2026, with profit falling to ₹244.2 crore from ₹400 crore in the year-ago period. According to latest reports, revenue from operations declined 10.4% to ₹1,702.3 crore from ₹1,900.5 crore, while Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 29.2% to ₹367.4 crore from ₹519.1 crore. EBITDA margin compressed to 21.6% compared with 27.3% a year earlier, with the margin contracting by 577 basis points year-on-year. As per Business Standard, total operating expenditure fell by 3.4% to ₹1,334.90 crore in Q1 FY27 over Q1 FY26, as lower raw material costs (down 10% YoY) more than offset higher finished goods purchases (up 25.1% YoY) and higher employee expenses (up 12.3% YoY). The company's net profit decline of 39% was significantly worse than the 22% decline expected by analysts.
The company's domestic business demonstrated resilience with 12% volume growth and 3% revenue growth, as reported by Business Standard. However, pricing remained under pressure and delayed monsoon has led to partial postponement of sales. The biologicals segment recorded aggressive growth, contributing positively to overall domestic performance. This domestic strength helped offset some of the challenges in the export markets, particularly in agrochemicals. According to ICICI Securities, the company reported a 12% decline in Agchem Exports due to soft demand in the global agrochemical industry and delayed monsoon-led buying, resulting in partial postponement of sales.
Agrochemicals exports dropped by 10% in value terms and by 8% in volume terms, primarily due to soft demand in the global agrochemical industry, according to Business Standard. The export weakness was a key factor in the overall decline in profitability for the quarter. Additionally, PI Health Sciences (PIHS) revenue fell by 25% YoY mainly due to customer order phasing, indicating broader challenges in the company's diversified business portfolio. As per ICICI Securities, the Pharma Contract Development and Manufacturing Organization (CDMO) business also remained weak, primarily due to customer order phasing, with increased input material prices due to geopolitical issues impacting gross margin. The company noted that exports continue to operate in a challenging environment.
Despite the challenging quarter, PI Industries maintained its FY27 revenue growth guidance of low-single-digit growth and plans to launch 4-5 new molecules in FY27, as reported by CNBC TV18. The company's pharma business remains focused on accelerating growth across Brazil, Mexico, Europe and the US. Its order book stood at around $1.2 billion, broadly stable sequentially, indicating continued business momentum despite current headwinds. The company reported a cash balance of ₹3,794 crore and incurred a total capex of ₹268.5 crore in Q1FY27. Separately, the company's board approved the incorporation of PI Foundation, a not-for-profit entity that will undertake Corporate Social Responsibility activities under Section 135 read with Schedule VII of the Companies Act, with the company holding 100% of the entity directly or indirectly.
