1. At a Glance
PI Industries isn’t your neighborhood pesticide brand; it’s the₹56,930 Cr agrochemicals giantthat moonlights as a chemical geek and now a wannabe pharma player. With 96% of revenues from agchem and 4% sneaked in from pharma, it’s the global chemistry tutor who suddenly decided to enter med school. The company runs with27% margins, has a CSM export order book of$1.5+ billion, and a network reaching 2 million farmers—basically half of rural India has heard their sales reps at least once. If UPL is the loud Bollywood blockbuster, PI is the quiet art-film that still wins international awards.
2. Introduction
Founded in Udaipur in 1946 (yes, pre-Independence), PI Industries grew from local pesticide trading into aglobal custom synthesis and contract manufacturing (CSM) powerhouse. Today, it is the chemical soulmate of Fortune 500 agri and pharma giants—developing molecules in labs, scaling them in pilot plants, and mass-producing them in Gujarat mega-factories.
The company’s growth arc has been explosive: sales grew at~19% CAGR over 5 years, profits even faster at ~30% CAGR, making it a darling of both farmers and FIIs. But FY24-25 threw curveballs: erratic monsoons killed domestic sales, exports slowed, and profits fell 7.8%. Yet PI responded the only way it knows—by filing patents (170+), buying a UK biochem firm (Plant Health Care Plc), and commissioning new plants worth ₹800–900 Cr.
PI’s strength is diversification: 70% of FY24 growth came from new molecules, and pharma (throughTherachem & Archimica acquisitions) is already contributing 4% of revenues with 186% YoY growth in Q1 FY26. If molecules were cricket shots, PI would be batting like Suryakumar Yadav—unorthodox, unpredictable, but piling on runs.
3. Business Model (WTF Do They Even Do?)
Think of PI Industries as achemistry consultancy that manufactures at scale.
- Agchem CSM Exports (~70% revenue):Global customers outsource molecule development. PI handles lab tests → process design → pilot → full-scale commercial production. Big clients = stable long-term contracts. Order book of $1.5–1.55 Bn = 2–3 years of visibility.
- Domestic Agri Brands (~26%):India-facing insecticides, fungicides, herbicides. Brands like Jivagro and PIIL supply 15,000 distributors & 100,000 retailers. Core molecules include
- Profenofos, Ethion, Phorate—aka the Avengers of generic pesticides. Biological products growing fast (+29% in FY24).
- Pharma (~4%):New baby segment after Therachem (US) & Archimica (Italy) acquisitions. Contract R&D and APIs for global majors. Contributed 6% to export growth in FY24.
- Target Crops:Rice, cotton, soybean, chilli, horticulture. If you’ve eaten bhindi or had daal-chawal in India, odds are PI’s molecules were involved.
So PI’s not just “pesticides”—it’s custom chemistry at global scale, diversified across agchem and pharma.
4. Financials Overview
| Metric | Jun 2025 (Latest Qtr) | Jun 2024 (YoY Qtr) | Mar 2025 (Prev Qtr) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹1,900 Cr | ₹2,069 Cr | ₹1,787 Cr | -8.1% ↓ | 6.3% ↑ |
| EBITDA | ₹519 Cr | ₹583 Cr | ₹456 Cr | -11.0% ↓ | 13.8% ↑ |
| PAT | ₹400 Cr | ₹449 Cr | ₹330 Cr | -10.9% ↓ | 21.2% ↑ |
| EPS (₹) | 26.4 | 29.6 | 21.8 | -10.8% ↓ | 21.1% ↑ |
Commentary:YoY slump thanks to El Niño + export slowdown. QoQ rebound shows resilience. PAT margins remain fat at 21%.
5. Valuation (Fair Value RANGE only)
- P/E Method:EPS (₹106). Industry P/E ~32. FV = 32 × 106 = ₹3,392. Current P/E = 35.
- EV/EBITDA Method:EBITDA ~₹2,115 Cr. EV/EBITDA 18–22× → EV = ₹38,000–₹46,500 Cr. Net debt negligible → Equity FV ~₹3,100–₹3,800/share.
- DCF Method:Assume 15% CAGR for 5 yrs, WACC 10%, terminal growth 4% → FV ₹3,400–₹4,100.
Educational FV Range:₹3,100 – ₹4,100.Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking
