 "Stock Market, Market, Crash, Funds, up, Stock, Lost, decline, statistic, Crisis, Capital, BSE, NSE")
Shares of PI Industries hit a fresh 52-week low at Rs 3,233.55, falling 4 per cent on the BSE in Thursday’s intra-day trade, thereby extending its past 4-day decline, on the back of disappointing December quarter (Q3FY25) earnings. In the last one week, the stock of pesticides & agrochemicals declined 11 per cent, as compared to 2.5 per cent decline in the BSE Sensex.
In Q3FY25, PI Industries’ consolidated profit after tax (PAT) declined 17 per cent year-on-year (YoY) to Rs 372.70 crore. Revenue remained flat at Rs 1,900 crore, against Rs 1,898 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) down 8 per cent YoY at Rs 512 crore; margin contracted 230 bps to 27.0 per cent in Q3FY25 from 29.0 per cent in Q3FY24.
The company expects CSM (Custom Synthesis Manufacturing) demand to improve in H2CY25. The company expects to achieve single digit growth in FY25. EBITDA margins are likely to be maintained, driven by a favourable product mix.
PI Industries’ steady Q3FY25 performance, cautious near-term outlook, and portfolio challenges are likely to affect the business dynamics in FY26 and FY27. The company is undergoing a strategic transformation into a life sciences entity, expanding into Pharma CRDMO (contract research development manufacturing organisation), Electronic Chemicals and Biologicals, according to analysts Nuvama Institutional Equities.
The CSM business posted a modest 2 per cent YoY growth, reaching Rs 1,550 crore, with volumes rising 5 per cent YoY. Management highlighted that new products grew 35 per cent YoY in 9MFY25. However, weakening demand dynamics have led the company to anticipate a recovery only in H2CY25, signalling a subdued Q4FY25 and Q1FY26.
Also Read
 "Ipca labs")
 "Prices of active pharmaceutical ingredients (APIs) have been declining over the past several months, boosting the margins of drug manufacturers. However, many industry insiders attribute this to a predatory pricing strategy by Chinese companies, and")
 "ITC Hotels")
 "pharmaceutical sector, pharma sector, medicines, meds")
 "Gulf Oil, Gulf Oil India,")
Accordingly, the brokerage firm said they are trimming FY25E EPS by 2.3 per cent to reflect this softness. Furthermore, analysts expect Pyroxasulfone’s contribution to taper off in the coming quarters. Our cautious stance on Pyroxasulfone stems from the expiration of its exclusive-use patent in the US and the upcoming expiry of its intermediate patents in China by December 2025, which is likely to open the floodgates for competition.
The overall business environment seems uncertain due to regime change in the US, leading to short-term uncertainties amidst tariff war tensions. This with lingering impact of global destocking should hit PI’s CSM business on both topline and profitability. This may be a temporary overhang, analyst at Elara Capital said in the result update.
The brokerage firm expects growth to pick up beyond the next 2-3 quarters as destocking is largely over globally, given scale-up in recently commercialized molecules and ramp-up in Pharma business, led by aggressive investment in improving capabilities.
 "Stock Market, BSE, NSE, Nifty, Capital")
 "The year was a mixed bag for the real estate industry as housing supply slowed down but record investments came in. Industry experts believe that demand will stabilise as sales are likely to be lower compared to 2023.")
 "NSE, National Stock Exchange")
 "IPO")
 "stock market BSE building")
