PIIND - PI Industries Limited Share Price

Questions and Answers from the Earnings Call Q&A Session

1. Question: "When you say growth resuming in fourth quarter, is it only a sequential growth that you are talking about or do you even expect a Y-o-Y growth? And what type of growth is it"”volume, revenue, or value?"

Answer: "There will be volume growth starting in quarter 4 FY26, and yes, we expect sequential growth over quarter 3. As we move into FY27, we should witness a strong growth momentum driven by our initiatives."

2. Question: "Are you already seeing enough visibility from customers for a recovery in FY27, or is it based on general optimism?"

Answer: "We receive visibility from our global customers, but external factors still play a role. While some adverse headwinds persist, we observe an uptick in demand. There's optimism from our customer engagements moving forward."

3. Question: "What kind of gross margin do you expect on a sustainable basis?"

Answer: "We aim to maintain a long-term gross margin guidance between 50% to 52%. While current margins are favorable, product mix changes will always impact quarter-to-quarter expectations."

4. Question: "What's the current status of the contract assets number on the balance sheet at the end of December 2025?"

Answer: "As of this quarter, our contract assets are approximately INR 1,065 crore compared to just under INR 900 crore last quarter. We anticipate a decline as we approach year-end, contingent on customer shipments."

5. Question: "What updates do you have on the Plant Healthcare acquisition and the cross-selling of products?"

Answer: "We've expanded significantly in the U.S., Brazil, and Mexico, with many distributors and farmers testing our products. Progress includes successful product trials with a high win rate, contributing to considerable growth prospects."

6. Question: "When do you expect Pioxaniliprole to be commercialized in the Indian market?"

Answer: "We should achieve registration within the next financial year, marking a significant milestone as India's first Ag-Chem innovation. Global registrations are also underway to launch the product once approved."

7. Question: "How should we think about investments in the pharma and biologicals segments given the EBITDA losses?"

Answer: "The investments in pharma and biologicals are strategic for long-term value creation. Although current losses are evident, establishing these foundations is crucial, and we expect to see positive movement in the coming quarters."

8. Question: "Can you provide guidance on CAPEX plans for FY27?"

Answer: "Broadly, we anticipate CAPEX to be around INR 500 crore to INR 600 crore. We will provide more precise guidance after Board approval in the next quarter."

9. Question: "What is the contribution of Biologicals to fiscal 2026 revenues so far?"

Answer: "Biologicals account for around 20% of our revenue this fiscal, and we are optimistic about growth as regulatory challenges get resolved."

10. Question: "What improvements do you expect in working capital days going forward?"

Answer: "Our working capital days have increased in response to current market conditions, but we expect improvements as the market stabilizes and normalizes in the upcoming quarters."