P I Industries Ltd (PIIND) Q2 FY27 Results Analysis: PAT Plunges 70%, EBITDA Margin Halves
P I Industries Ltd reported Q2 FY27 numbers with revenue of Rs. 1,701.80 Cr (-9.10% YoY) and PAT growth of -70.10% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,701.80 Cr (-9.10% YoY) |
| PAT (Q2) | Rs. 122.20 Cr (-70.10% YoY) |
| EBITDA margin | 13.90% (-1510 bps YoY) |
| EPS (Q2) | Rs. 8.05 (-70.20% YoY) |
Quarter Snapshot
Q2 FY27 was a severe operating deterioration: revenue fell 9.1% YoY, gross margin compressed ~720 bps QoQ to 49.5% against management's ~58% target, EBITDA margin halved to 13.9%, and PAT fell 70.1% YoY with the ETR spiking to 33.6% versus guided ~24%. Management's FY27 revenue growth guidance now requires a high-teens-to-low-20s H2 inflection that current trends do not support. Offsets are cash quality (H1 CFO 2.43× PAT, FCF positive at Rs.234.7 Cr), a Rs.3,603.5 Cr net cash balance sheet, and a narrowing Pharma segment loss.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Exports "behind… global demand was still weakening" | Revenue −9.1% YoY | Played out |
| Broker preview (per pre-call note): "EBITDA down ~30% y/y" | EBITDA −56.5% YoY — far worse | Played out |
| Domestic "in-line-to-behind" | No geographic split in filing | Not observable |
| "Gross-to-EBITDA gap more likely widens than narrows" | GM 49.5% vs 56.7% | Played out |
| "Compressing risk at the EBITDA line" | 13.9% vs 21.7% Q1 | Played out |
| Pharma/biologics loss "plateauing?" watch item | Loss narrowed to Rs.(60.1) Cr from Rs.(81.6) Cr — improving | Played out |
| Contract assets trend to Rs.500–700 Cr | Rs.738.2 Cr, above band — still above | Played out |
| ETR path toward ~24% | 33.6% | Contradicted |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue growth positive, "lower single digit" | Q4 FY26 earnings call | Q2 −9.1% YoY; H1 −9.8% YoY — H1) — needs deep H2 inflection | Off Track |
| FY27 gross margin maintained at prior-year average (~58%) | Q4 FY26 earnings call | 49.5% | Missed |
| FY27 ETR inching to ~24% | Q4 FY26 earnings call commentary | 33.6% | Above guided level |
| FY27 capex Rs.700–800 Cr | Q4 FY26 earnings call | Rs.655.2 Cr in H1 | On Track |
| CSM turn positive YoY in FY27 | Q4 FY26 earnings call | Agro revenue −10.1% YoY; split not disclosed | Too Early / not derivable from filing |
| Pharma CRDMO Rs.500–600 Cr in 2–3 yrs | Q4 FY26 earnings call | Rs.130.1 Cr in H1; loss narrowing | Too Early |
| Pharma EBITDA positivity at Rs.400–500 Cr topline | Q2 FY26 call commentary | Revenue Rs.75.9 Cr; PBT Rs.(60.1) Cr | Too Early |
| Contract assets steady-state Rs.500–700 Cr | Q4 FY26 call commentary | Rs.73.8 Cr | Above band |
Key Investment Insights
Key Positives
- Pharma segment revenue grew 19.7% YoY and 40.0% QoQ to Rs.75.9 Cr, with PBT loss narrowing to Rs.(60.1) Cr from Rs.(81.6) Cr in Q1
- H1 operating cash flow of Rs.889.9 Cr was 2.43× PAT and 1.47× EBITDA, versus 0.31× and 0.23× a year ago
- H1 free cash flow turned positive at Rs.234.7 Cr from Rs.(199.9) Cr in H1 FY26
- Net cash position of Rs.3,603.5 Cr with negligible borrowings of Rs.20.8 Cr
- Capex of Rs.655.2 Cr in H1 is on track against the FY27 Rs.700–800 Cr guidance
- Trade receivables released Rs.13.9 Cr cash in H1, declining to Rs.143.8 Cr from Rs.161.1 Cr at Mar-26
- No exceptional items in the quarter; auditors issued an unmodified limited-review conclusion
Risk Factors
- Revenue fell 9.1% YoY to Rs.1,701.8 Cr and H1 revenue is down 9.8% YoY, leaving FY27 lower-single-digit growth guidance requiring a deep H2 inflection
- Gross margin compressed ~720 bps QoQ to 49.5% versus management's ~58% FY27 target, with materials at 46.4% of revenue
- EBITDA fell 56.5% YoY to Rs.236.2 Cr with margin at 13.9% vs 29.0% a year ago
- PAT fell 70.1% YoY to Rs.122.2 Cr, with effective tax rate spiking to 33.6% vs guided ~24%
- Agro chemicals segment margin halved to 15.2% from 32.6% a year ago, with segment result down 58.1% YoY
- Overseas subsidiaries posted a net loss after tax of Rs.85.4 Cr for the quarter, dragging consolidated PAT Rs.84.9 Cr below standalone
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.