PI's herbicide woes force plan B

PI Industries Ltd’s shares have fallen 22% in the past six months.

- Harsha Jethmalani harshaj@htlive. com

Subdued global and domestic demand have marred the agro-chemicals company’s recent earnings performance and investor sentiment.The custom synthesis and manufacturing (CSM) segment, which contributed 77% of revenue in HIFY26, has been bearing the brunt. PI now faces another hurdle that could accentuate the downward pressure on the stock.

Japanese giant Kumiai Chemicals, a major PI customer, has lowered its FY26 revenue and profit guidance. PI supplies the herbicide pyroxasulfone to Kumiai, which anticipates a 5% revenue decline and a 32% fall in operating profit, hurt by pricing pressure and muted herbicide demand in some overseas markets.