Jefferies has maintained its buy rating on PI Industries Ltd with a target price of ₹4,315 per share, noting that Q2FY26 results were slightly ahead of its expectations despite weakness in contract manufacturing (CSM) exports and domestic sales.
The company reported a 16% year-on-year decline in revenues, which was still 8% above Jefferies’ forecast, led by an 18% fall in CSM exports as volumes dropped 17%. Domestic business also contracted 13% year-on-year, missing estimates.
However, Jefferies highlighted a positive surprise from the pharma division, which delivered growth though losses persisted in line with expectations. Management reiterated its full-year guidance for single-digit revenue growth in FY26, supported by 27% year-on-year growth in new product launches during the quarter.
The brokerage expects PI Industries’ long-term growth to remain intact, driven by product diversification and the company’s move into high-value agrochemicals and pharmaceuticals.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
