Q1 2027 PI Industries Ltd Earnings Call

August 12, 2026

Operator 3: Ladies and gentlemen, good day and welcome to the PI Industries Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Solanki from CDR. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the PI Industries Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Solanki from CDR. Thank you, and over to you, sir.

Speaker #1: Ladies and gentlemen, good day and welcome to the PI Industries Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Nishith Solanki from CDR. Thank you, and over to you, sir.

Speaker #2: Oh, thank you. Good afternoon, everyone, and thank you for joining us on PI Industries' Q1 FY27 earnings conference call. Today we are joined by senior members of the management team, including Mr. Mayank Singhal, Executive Vice Chairperson and Managing Director; Mr. Sanjay Agarwal, Group Chief Financial Officer; Dr. Atul Gupta, CEO, CSM, ACCUM, and Executive Director; and Mr. Jagesh Rana, Global CEO of PI Act Sciences.

Moderator: Thank you. Good afternoon, everyone, and thank you for joining us on PI Industries Q1 FY27 Earnings Conference Call. Today, we are joined by senior members of the management team, including Mayank Singhal, Executive Vice Chairperson and Managing Director, Sanjay Agarwal, Group Chief Financial Officer, Dr. Atul Gupta, CEO, CSM, ACUM, and Executive Director, Jagresh Rana, Global CEO of PI AgSciences. We shall begin the call with key perspectives from Mr. Singhal. Following that, Mr. Agarwal will share his views on the company's financial performance. Thereafter, the forum will be open for question and answer session. Before we begin, I would like to underline that certain statements made on today's conference call could be forward-looking in nature. A disclaimer to this effect has been included in the investor presentation that is available on stock exchange website and also shared with you earlier.

Nishit Solanki: Thank you. Good afternoon, everyone, and thank you for joining us on PI Industries Q1 FY27 Earnings Conference Call. Today, we are joined by senior members of the management team, including Mayank Singhal, Executive Vice Chairperson and Managing Director, Sanjay Agarwal, Group Chief Financial Officer, Dr. Atul Gupta, CEO, CSM, ACUM, and Executive Director, Jagresh Rana, Global CEO of PI AgSciences. We shall begin the call with key perspectives from Mr. Singhal. Following that, Mr. Agarwal will share his views on the company's financial performance.

Speaker #2: We shall begin the call with key perspectives from Mr. Singhal. Following that, Mr. Agarwal will share his views on the company's financial performance. Thereafter, the forum will be open for a question and answer session.

Nishit Solanki: Thereafter, the forum will be open for question and answer session. Before we begin, I would like to underline that certain statements made on today's conference call could be forward-looking in nature. A disclaimer to this effect has been included in the investor presentation that is available on stock exchange website and also shared with you earlier. With that, I invite Mr. Singhal to share his perspectives. Thank you, and over to you, sir.

Speaker #2: Before we begin, I would like to underline that certain statements made on today's conference call could be forward-looking in nature. A disclaimer to this effect has been included in the investor presentation that is available on stock exchange websites and has also been shared with you earlier.

Speaker #2: With that, I invite Mr. Singhal to share his perspectives. Thank you, and over to you, sir.

Moderator: With that, I invite Mr. Singhal to share his perspectives. Thank you, and over to you, sir.

Speaker #3: Yes, thanks. Good afternoon, everyone, and thank you for joining the call today. I will share a few of my perspectives on the agrochemical industry dynamics, followed by PI's performance and progress on its new strategic initiatives.

Mayank Singhal: Yeah, thanks. Good afternoon, everyone, and thank you for joining the call today. I will share a few of my perspectives on the AgChem industry dynamics, followed by PI's performance and progress on its new strategic initiatives. The global crop protection market is showing early signs of demand and stabilization. While the geopolitical energy disruptions have moderated, the need for resilient supply chains and diversification needs have been reinforced. This environment plays directly to PI's strengths. As a research technology leader, we need unique proposition of a long-term partnerships. The industry is going through a structural shift with adoption of safer, more sustainable technologies, while increasing scrutiny and replacement for older technologies and solutions with limited innovation to answer these challenges. In addition, competitive edges is moving forward with innovation, process excellence, and ability to commercialize new complex solutions.

Speaker #3: The global crop protection market is showing early signs of demand and stabilization, while the geopolitical and energy disruptions have moderated. The need for resilient supply chains and diversification needs have been reinforced.

Speaker #3: This environment plays directly to PI's strengths as a research technology leader. We need a unique proposition of long-term partnerships. The industry is going through a structural shift with the adoption of safer, more sustainable technologies, while increasing scrutiny and replacement of older technologies and solutions with limited innovation to answer these challenges.

Mayank Singhal: The industry is going through a structural shift with adoption of safer, more sustainable technologies, while increasing scrutiny and replacement for older technologies and solutions with limited innovation to answer these challenges. In addition, competitive edges is moving forward with innovation, process excellence, and ability to commercialize new complex solutions. As you know, PI has invested ahead of the trend to differentiate capabilities in the area of research and technology to find chem bio solutions for the end farmer.

Speaker #3: In addition, competitive edge is moving forward with innovation, process excellence, and the ability to commercialize new, complex solutions. As you know, PI has invested ahead of the trend to differentiate capabilities in the area of research and technology, to find chem-bio solutions for the environment.

Mayank Singhal: As you know, PI has invested ahead of the trend to differentiate capabilities in the area of research and technology to find chem bio solutions for the end farmer. Today, our customer view us not as a reliable long-term partner, but as someone deepening our relationships across the business value chain to deliver more economical and sustainable advantages. These capabilities closely align to PI's business model over decades, serving highly regulated global innovative solutions, providing strong foundations for our expansions in high-value adjacencies such as pharma, electronics, and specialty chemicals. We believe PI is well-placed to participate in the next wave of technology-led growth, while continuing to create long-term sustained value for all its stakeholders. On the domestic front, this year has begun with El Niño, strong heat waves, delayed sowings, and high levels of inventories from prior years.

Speaker #3: Today, our customers view us not as a reliable long-term partner, but as someone deeply invested in our relationships across the business value chain to deliver more economical and sustainable advantages.

Mayank Singhal: Today, our customer view us not as a reliable long-term partner, but as someone deepening our relationships across the business value chain to deliver more economical and sustainable advantages. These capabilities closely align to PI's business model over decades, serving highly regulated global innovative solutions, providing strong foundations for our expansions in high-value adjacencies such as pharma, electronics, and specialty chemicals.

Speaker #3: These capabilities closely align with PI’s business model, developed over decades serving highly regulated global innovative solutions, providing strong foundations for expansions in high-value adjacencies such as pharma, electronics, and specialty chemicals.

Speaker #3: We believe PI is well placed to participate in the next wave of technology-like growth, while continuing to create long-term, sustained value for all its stakeholders.

Mayank Singhal: We believe PI is well-placed to participate in the next wave of technology-led growth, while continuing to create long-term sustained value for all its stakeholders. On the domestic front, this year has begun with El Niño, strong heat waves, delayed sowings, and high levels of inventories from prior years. As we see today, sowing in monsoon has picked up, and we believe sowing is at par as the last year. This delay, however, has impacted replacement sales of chemicals.

Speaker #3: On the domestic front, this year has begun with El Niño, strong heat waves, delayed sowings, and high levels of inventories from prior years. As you see today, sowing in Montana has picked up, and we believe sowing is at par with last year.

Mayank Singhal: As we see today, sowing in monsoon has picked up, and we believe sowing is at par as the last year. This delay, however, has impacted replacement sales of chemicals. While there has been shortages of fertilizer, our special efforts to use biological to support the need of the farmer while addressing the need of our sustainable vision in agriculture has resulted in achieving a positive quarter, an aggressive growth of 50% in biological and a flat rather than a negative outlook. We believe this would be seen positively in the coming period ahead. There are pressures on margin due to high input costs, higher levels of inventory. However, we believe consumption patterns will see a positive trajectory, and the industry remains cautious and watchful of erratic weather and climatic situations, which will impact crop and consumption.

Speaker #3: This delay, however, has impacted replacement sales of chemicals. While there have been shortages of fertilizer area, a special effort to use biologicals to support the needs of the farmer while addressing the need for a sustainable vision in agriculture has resulted in achieving a positive quarter and aggressive growth of 50% in biologicals, and a flat rather than a negative outlook.

Mayank Singhal: While there has been shortages of fertilizer, our special efforts to use biological to support the need of the farmer while addressing the need of our sustainable vision in agriculture has resulted in achieving a positive quarter, an aggressive growth of 50% in biological and a flat rather than a negative outlook. We believe this would be seen positively in the coming period ahead. There are pressures on margin due to high input costs, higher levels of inventory.

Speaker #3: We believe this would be seen positively in the coming period ahead. There are pressures on margins due to high input costs and higher levels of inventory. However, we believe consumption patterns will see a positive trajectory. The industry remains cautious and watchful of erratic weather and climatic situations, which will impact crop and consumption.

Mayank Singhal: However, we believe consumption patterns will see a positive trajectory, and the industry remains cautious and watchful of erratic weather and climatic situations, which will impact crop and consumption. Overall, we believe the long term, the need for food, population, pharma, global are demanding solutions for safer, selective, and sustainable. Innovative solutions with integrated approaches of chemistry and biology, driven by strong capability of R&D and commercialization with a proven trust of execution, we believe these positions are strongly to be long-term winner.

Speaker #3: Overall, we believe that in the long term, the need for food, population, pharma, and global challenges are demanding solutions for safer, selective, and sustainable innovation, with integrated approaches of chemistry and biology driven by strong capability, warranty, and commercialization with a proven trust of execution.

Mayank Singhal: Overall, we believe the long term, the need for food, population, pharma, global are demanding solutions for safer, selective, and sustainable. Innovative solutions with integrated approaches of chemistry and biology, driven by strong capability of R&D and commercialization with a proven trust of execution, we believe these positions are strongly to be long-term winner. With respect to export business, the operating environment continues to remain challenging. Soft commodity prices in line with impact of previous year industry downturn and muted recovery in crop economics, consumption patterns continue to exert pressure on growth compression. This further combined with rising costs due to geopolitical issues and generalization pressures, including tariffs. Given our unique business model, we remain confident of a positive trajectory for the business over the mid to long term.

Speaker #3: We believe this positions are strongly to be long-term winner. With respect to export business, the operating environment continues to remain challenging soft commodity prices in line with impact of previous year industry downturn and muted recovery in crop economics, consumption patterns continue to exert pressure on growth and pricing.

Mayank Singhal: With respect to export business, the operating environment continues to remain challenging. Soft commodity prices in line with impact of previous year industry downturn and muted recovery in crop economics, consumption patterns continue to exert pressure on growth compression. This further combined with rising costs due to geopolitical issues and generalization pressures, including tariffs. Given our unique business model, we remain confident of a positive trajectory for the business over the mid to long term.

Speaker #3: This, further combined with rising costs due to geopolitical issues and generalization pressures, including tariffs, gives us confidence. Given our unique business model, we remain confident of a positive trajectory for the business over the mid to long term.

Speaker #3: We commissioned, in one of the world's largest flow plants, advanced flow chemistry capabilities—ensuring better, sustainable, safe solutions for hazardous chemistry and superior process control—and to look at manufacturing with a sustainable lens.

Mayank Singhal: We commissioned in one of the world's largest flow plants, advanced flow chemistry capability, ensuring better sustainable safer for hazardous chemistry and superior process control, and to look at manufacturing for the sustainable lens whilst value-adding to the cost and efficiency of production. PI continues with such unique complex capabilities with a well-positioned to meet futuristic requirements of our products and solutions with high precision, meeting stringent regulatory compliance standards. I am also happy to inform that slowly but steadily, we are moving in the right direction in our pharma plans, seeing early positive signs transforming a differentiated CRDMO organization. Some early shoots, a couple of interesting inquiries seen going into the commercial phase.

Speaker #3: While value adding to the cost and efficiency of production, PI continues with such unique, complex capabilities, and is well positioned to meet the futuristic requirements of our products and solutions with high precision, meeting stringent regulatory compliance standards.

Speaker #3: I'm also happy to inform you that, slowly but steadily, we are moving in the right direction in our pharma plan, seeing early positive signs transforming into a differentiated CRDMO organization.

Mayank Singhal: I am also happy to inform that slowly but steadily, we are moving in the right direction in our pharma plans, seeing early positive signs transforming a differentiated CRDMO organization. Some early shoots, a couple of interesting inquiries seen going into the commercial phase. On the other side, the capability build-out is now coming to a stronger foothold, putting the center of excellence of drug discovery in Hyderabad and CRO facilities to support IND programs with customers, and the commissioning of a QC lab, which is now approved by regulators in our sites in Italy.

Speaker #3: Some early shoots of a couple of interesting inquiries seen going into the commercial phase. On the other side, the capability build-out is now coming to a stronger foothold, putting the Center of Excellence of drug discovery in Hyderabad and CRO facilities to support IDD programs with customers, and the commissioning of a QC lab which is now approved by regulators in our sites in Italy.

Mayank Singhal: On the other side, the capability build-out is now coming to a stronger foothold, putting the center of excellence of drug discovery in Hyderabad and CRO facilities to support IND programs with customers, and the commissioning of a QC lab, which is now approved by regulators in our sites in Italy. With regard to the electronic and specialty chemicals, the inquiries and commercializations showing a positive trajectory. The investments which are supporting for this are also running on track. PI is moving into the next orbit, where we become a research technology-based company through partnership models with a global footprint while investing in our core strengths to bring innovation to life at a global level. Let me now turn to our biologicals, which we have been in passion the last two decades, during which we have built one of the most comprehensive biological portfolios in India.

Speaker #3: With regard to the electronic and specialty chemicals, the inquiries and commercializations are showing a positive trajectory. The investments which are supporting this are also running on track.

Mayank Singhal: With regard to the electronic and specialty chemicals, the inquiries and commercializations showing a positive trajectory. The investments which are supporting for this are also running on track. PI is moving into the next orbit, where we become a research technology-based company through partnership models with a global footprint while investing in our core strengths to bring innovation to life at a global level. Let me now turn to our biologicals, which we have been in passion the last two decades, during which we have built one of the most comprehensive biological portfolios in India.

Speaker #3: PI is moving into the next orbit, where we become a research technology-based company with partnership models and a global footprint, while investing in our coastlands to bring innovation to life at a global level.

Speaker #3: Let me now turn to biologicals, which we have been passionate about for the last two decades, during which we have built one of the most comprehensive biological portfolios in India. Now, with the passion of expanding this into global markets over the last few years and through acquisitions, we have a unique peptide platform.

Mayank Singhal: Now with the passion of expanding this into global markets for the last overall acquisitions with a unique peptide platform. We are excited to see the progress and investments that we have made in the past and the coming year, that results are in the various large-scale demonstration and validation conviction of our farmers, showing consistent performance across geographies, United States, Mexico, Brazil, and Asia. Our unique new foliar application nematicide, first of its in the industry, is at par if not better than some of the chemical alternatives, creating a meaningful differentiation to the farmers. Now I would like to move and focus on defining platform to PI, which is built over decades. Our in-house innovation in R&D platform. Our first NCE product and the repellent insecticide discovered in India for Indian farmers now to go to global farmers is set to be launched in domestic markets very soon.

Speaker #3: We are excited to see the progress and investments that we have made in the past and the coming year, that results are in the various large-scale demonstrations and validation conviction of our farmers, showing consistent performance across the geographies—United States, Mexico, Brazil, and Asia.

Speaker #3: Our unique, new foliar application nematode, first of its kind in the industry, is at par, if not better, than some of the chemical alternatives, creating a meaningful differentiation to the farm.

Speaker #3: Now I would like to move and focus on defining the platform at PI, which has been built over decades. Our announced innovation in the R&D platform—our first new chemistry product under the role, and an insecticide discovered in India for Indian farmers, now to go to global farmers—is set to be launched in the domestic market.

Mayank Singhal: Now I would like to move and focus on defining platform to PI, which is built over decades. Our in-house innovation in R&D platform. Our first NCE product and the repellent insecticide discovered in India for Indian farmers now to go to global farmers is set to be launched in domestic markets very soon. However, awaiting the regulatory approvals. This marks our capability by demonstrating our ability to have invested at a global scale and take innovation from India to the world.

Speaker #3: Very soon. However, awaiting the regulatory approvals, this marks our capability by demonstrating our ability to have invested at a global scale and take innovation from India to the world.

Mayank Singhal: However, awaiting the regulatory approvals. This marks our capability by demonstrating our ability to have invested at a global scale and take innovation from India to the world. We've invested deeply, both in financial processes and human capabilities to ensure our ability to deliver this at a global scale, to taking molecules from lab to market. These capabilities over the years will be leveraged with the pipeline of products that we have. While looking at the external challenges and aggressive investments to support our new initiatives, we remain positive on the growth trajectory for 2027. With this, I will hand this over to Sanjay for the financial performance. Over to you, Sanjay, and thank you.

Speaker #3: We have invested deeply both in financial processes and human capabilities to ensure our ability to deliver this at a global scale—to take molecules from lab to market.

Mayank Singhal: We've invested deeply, both in financial processes and human capabilities to ensure our ability to deliver this at a global scale, to taking molecules from lab to market. These capabilities over the years will be leveraged with the pipeline of products that we have. While looking at the external challenges and aggressive investments to support our new initiatives, we remain positive on the growth trajectory for 2027. With this, I will hand this over to Sanjay for the financial performance. Over to you, Sanjay, and thank you.

Speaker #3: These capabilities, over the years, will be leveraged with the pipeline of products that we have. While looking at the external challenges and aggressive investments to support our new initiatives, we remain positive on the growth trajectory for 2027.

Speaker #3: With this, I will hand it over to Sanjay for the financial performance. Over to you, Sanjay, and thank you.

Speaker #2: Thank you, Mr. Singhal. Good afternoon, and a very warm welcome to everyone. I’ll summarize our financial performance for the first quarter of FY27 and the progress we continue to make in strengthening PI’s long-term growth initiatives.

Sanjay Agarwal: Thank you, Mr. Singhal. Good afternoon and a very warm welcome to everyone. I'll summarize our financial performance for the first quarter of FY27 and the progress we continue to make in strengthening PI's long-term growth initiatives. While the quarter witnessed softness amid cyclical headwinds and global disruptions, we are steadily transitioning towards growth trajectory. For Q1 FY27, reported revenue is INR 17,023 million, with healthy gross margin of 57% and EBITDA at 22%. To bring context to these numbers, let me explain a few of the initiatives behind each of our businesses. Firstly, AgChem exports business, which is built on a deep foundation of innovation, R&D excellence, complex chemistries, and next-generation technologies, has created a significant competitive moat and delivered differentiated value to our global customers.

Speaker #2: While the quarter witnessed softness amid cyclical headwinds and global disruption, we are steadily transitioning towards a growth trajectory. For Q1 FY27, reported revenue is INR 17,023 million with a healthy gross margin of 57% and EBITDA at 22%.

Speaker #2: To bring context to these numbers, let me explain a few of the initiatives behind each of our businesses. Firstly, AKM export business, which is built on a deep foundation of innovation, R&D excellence, complex chemistries, and next-generation technologies, has created a significant competitive moat and delivers differentiated value to our global customers.

Sanjay Agarwal: Firstly, AgChem exports business, which is built on a deep foundation of innovation, R&D excellence, complex chemistries, and next-generation technologies, has created a significant competitive moat and delivered differentiated value to our global customers. While the business has faced near-term challenges reflecting contraction of global crop protection industry, the strength of our core business remains intact and future-ready. We continue to invest in this platform through commercialization of new molecules and targeted CapEx, positioning us to capture the next phase of industry revival and growth.

Speaker #2: While the business has faced near-term challenges reflecting the contraction of the global crop protection industry, the strength of our core business remains intact and future-ready.

Sanjay Agarwal: While the business has faced near-term challenges reflecting contraction of global crop protection industry, the strength of our core business remains intact and future-ready. We continue to invest in this platform through commercialization of new molecules and targeted CapEx, positioning us to capture the next phase of industry revival and growth. These capabilities not only reinforce our strategic partnership with global innovators but also provide a strong foundation for expansion into high-value adjacencies such as electronic and specialty chemicals. Thereafter, domestic agri business continues to be built around differentiated and high-value crop protection solutions rather than a generic product approach. Many of our flagship brands, including Nominee Gold, Brofya, Pyvita, have maintained leadership position over several years, reflecting the strength of our portfolio and customer trust. Biologicals have shown an aggressive growth of 50% with a three-year CAGR of 15%.

Speaker #2: We continue to invest in this platform through the commercialization of new molecules and targeted capex, positioning us to capture the next phase of industry revival and growth.

Speaker #2: These capabilities not only reinforce our strategic partnership with global innovators, but also provide a strong foundation for expansion into high-value adjacencies such as electronic and specialty chemicals.

Sanjay Agarwal: These capabilities not only reinforce our strategic partnership with global innovators but also provide a strong foundation for expansion into high-value adjacencies such as electronic and specialty chemicals. Thereafter, domestic agri business continues to be built around differentiated and high-value crop protection solutions rather than a generic product approach. Many of our flagship brands, including Nominee Gold, Brofya, Pyvita, have maintained leadership position over several years, reflecting the strength of our portfolio and customer trust.

Speaker #2: Thereafter, domestic agribusiness continues to be built around differentiated and high-value crop protection solutions rather than a generic product approach. Many of our flagship brands, including Nominee Gold, Brophia, and Pivita, have maintained leadership positions over several years, reflecting the strength of our portfolio and customer trust.

Speaker #2: Biologicals have shown an aggressive growth of 50% with a three-year CAGR of 15%. Our four decades we have over decades we have developed a deep market presence with more than 15,000 distributors and 1.5 lakh retailers creating a resilient channel network and strong partners relationships that help us effectively navigate market and supply chain disruptions.

Sanjay Agarwal: Biologicals have shown an aggressive growth of 50% with a three-year CAGR of 15%. Over decades, we have developed a deep market presence with more than 15,000 distributors and 1.5 lakh retailers, creating a resilient channel network and strong partnership relationships that help us effectively navigate market and supply chain disruptions. Despite a challenging operating environment in the domestic market, we delivered a 12% volume growth in this quarter, translating into a 3% revenue growth.

Sanjay Agarwal: Over decades, we have developed a deep market presence with more than 15,000 distributors and 1.5 lakh retailers, creating a resilient channel network and strong partnership relationships that help us effectively navigate market and supply chain disruptions. Despite a challenging operating environment in the domestic market, we delivered a 12% volume growth in this quarter, translating into a 3% revenue growth. With the new product launches planned and monsoon conditions improving in this quarter, we remain optimist about the growth outlook for the coming quarters. Over the past few years, we have strategically invested in building an integrated pharma platform across Jaipur, Hyderabad in India, and Lodi in Italy, creating a differentiated capability base and a strong foundation for future growth.

Speaker #2: Despite a challenging operating environment in the domestic markets, we delivered 12% volume growth in this quarter, translating into 3% revenue growth. With the new product launches planned, and monsoon conditions improving in this quarter, we remain optimistic about the growth outlook for the coming quarters.

Sanjay Agarwal: With the new product launches planned and monsoon conditions improving in this quarter, we remain optimist about the growth outlook for the coming quarters. Over the past few years, we have strategically invested in building an integrated pharma platform across Jaipur, Hyderabad in India, and Lodi in Italy, creating a differentiated capability base and a strong foundation for future growth.

Speaker #2: Over the past few years, we have strategically invested in building an integrated farmer platform across Jaipur and Hyderabad in India, and Lodhi in Italy, creating a differentiated capability base and a strong foundation for future growth.

Speaker #2: While our current farmer business spans CRO and product offerings, our long-term ambition is to evolve into a fully integrated CRDMO platform, recognizing that such a transition requires patience, capability building, and customer trust.

Sanjay Agarwal: While our current pharma business spans CRO and product offerings, our long-term ambition is to evolve into a fully integrated CRDMO platform, recognizing that such a transition requires patience, capability building, and customer trust. Our global biologicals platform continue to gain strong global traction. We are on a track for aggressive growth across Brazil, Mexico, Europe, and US, supported by 500-plus field trials, 1,000-plus grower engagement are strengthening our market presence and accelerating adoption. We maintained a healthy growth margin of 57% during the quarter, supported by a disciplined execution. While margins remain robust, we continue to closely monitor the operating environment, given the volatility in the raw material prices. EBITDA for the quarter stood at 3,693 million, translating into an EBITDA margin of 22%.

Speaker #2: Our global biologicals platform continues to gain strong global traction. We are on track for aggressive growth across Brazil, Mexico, Europe, and the US, supported by 500-plus field trials and 1,000-plus grower engagements, which are strengthening our market presence and accelerating adoption.

Speaker #2: We maintained a healthy gross margin of 57% during the quarter, supported by disciplined execution. While margins remain robust, we continue to closely monitor the operating environment given the volatility in raw metal prices. EBITDA for the quarter stood at ₹3,693 million, translating into an EBITDA margin of 22%.

Sanjay Agarwal: We maintained a healthy growth margin of 57% during the quarter, supported by a disciplined execution. While margins remain robust, we continue to closely monitor the operating environment, given the volatility in the raw material prices. EBITDA for the quarter stood at 3,693 million, translating into an EBITDA margin of 22%. This performance has been delivered while we continue to invest significantly in our future growth platforms, including new businesses, innovation initiatives, and R&D investments, which contribute 3% to 4% of our revenue. We expect ETR for FY27 to be around 24%.

Speaker #2: This performance has been delivered while we continue to invest significantly in our future growth platforms, including new businesses, innovation initiatives, and R&D investment, which contribute 3 to 4% of our revenue.

Sanjay Agarwal: This performance has been delivered while we continue to invest significantly in our future growth platforms, including new businesses, innovation initiatives, and R&D investments, which contribute 3% to 4% of our revenue. We expect ETR for FY27 to be around 24%. Moving on to balance sheet, we have always believed in disciplined capital allocation and therefore maintain a rigorous focus on net working capital as well. Despite the challenging environment, the team delivered an impressive reduction of 19 days in net working capital, releasing INR 300 crores of cash. We continue to drive excellence across our commercial and sales team to further strengthen working capital efficiency, which is in any way best in the industry. Our strong debt-free balance sheet, supported with net cash of INR 38 billion, provides resilience and flexibility for strategic investments.

Speaker #2: We expect ATR for FY27 to be around 24%. Moving on to the balance sheet, we've always believed in disciplined capital allocation, and therefore maintain a rigorous well.

Sanjay Agarwal: Moving on to balance sheet, we have always believed in disciplined capital allocation and therefore maintain a rigorous focus on net working capital as well. Despite the challenging environment, the team delivered an impressive reduction of 19 days in net working capital, releasing INR 300 crores of cash. We continue to drive excellence across our commercial and sales team to further strengthen working capital efficiency, which is in any way best in the industry. Our strong debt-free balance sheet, supported with net cash of INR 38 billion, provides resilience and flexibility for strategic investments.

Speaker #2: Despite the challenging environment, the team delivered an impressive reduction of 19 days in net working capital, releasing ₹300 crore of cash. We continue to drive excellence across our commercial and sales teams to further strengthen working capital efficiency.

Speaker #2: Which is in any way, best in the industry. Our strong, debt-free balance sheet, supported with net cash of ₹38 billion, provides resilience and flexibility for strategic investments.

Speaker #2: We expect FY27 to be better than FY26, driven by a recovery in exports in the second half, supported by our new product launches and the gradual scale-up of our farmer and global biologicals business.

Sanjay Agarwal: We expect FY27 to be better over FY26, driven by recovery in exports in H2, supported by our new product launches and gradual scale-up of our pharma and global biologicals business. With this, I conclude my opening remarks. I will now request the moderator to open the forum for Q&A. Thank you.

Speaker #2: With this, I conclude my opening remarks. I will now request the moderator to open the forum for Q&A. Thank you.

Speaker #1: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone.

Operator 3: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ankur Periwal with Axis. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ankur Periwal with Axis. Please go ahead.

Speaker #1: If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking their questions.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Uncle Periwal with access.

Speaker #1: Please go ahead.

Speaker #3: Yeah, hi. Good afternoon, sir. Thanks for the opportunity. I'm audible, right?

Operator 2: Yeah. Hi, good afternoon, sir. Thanks for the opportunity. I am audible, right?

Ankur Periwal: Yeah. Hi, good afternoon, sir. Thanks for the opportunity. I am audible, right?

Speaker #2: Yes, we can hear you, Uncle.

Sanjay Agarwal: Yes, we can hear you, Ankur.

Speaker #3: Yeah, hi. Okay, so first question on, you know, the new molecule pipeline. Our annual report talks of, you know, 90 molecules under various stages of, you know, progress. Of them, 60% are at an advanced stage.

Operator 2: Yeah. Hi. Okay. So first question on the new molecule pipeline. Our annual report talks of 90 molecules under various stages of progress. Out of them, 60% of them are at advanced stage. Could you help us better understand how should one look at this pipeline across the AgChem, electronic, as well as pharma, biologicals, et cetera?

Ankur Periwal: Yeah. Hi. Okay. So first question on the new molecule pipeline. Our annual report talks of 90 molecules under various stages of progress. Out of them, 60% of them are at advanced stage. Could you help us better understand how should one look at this pipeline across the AgChem, electronic, as well as pharma, biologicals, et cetera?

Speaker #3: Could you help us better understand how one should look at this pipeline across the ECCAM, electronics, as well as pharma and biologicals, etc.?

Mayank Singhal: Well, I think, Ankur, that is a very long, long question. I think pipeline is overlooked about their production and their valuation. It is a funnel approach, as you rightly understood, and there are about 60, there are 90 projects under development. Pipeline of these molecules, usually, there are majority which are in the AgChem, which are one is pipeline in the R&D, one is pipeline in CSM, the other is a pipeline of products which are going to go to market from a development point. That gets further multiplied by chemistry and biology. Then we look at policies and structures coming for electronics and specialty chemicals segment. That is the bundle of the whole piece. We do not really have the breakup right now, but that is a large number.

Speaker #2: So, well, actually, uncle, that is a very long, long question. I think pipeline is overlooked at what we have: production evaluation. It's a funnel approach, as you rightly understood.

Speaker #2: And there are about 60, there are slightly projects under development. And pipelines of these molecules, usually you would, there are majority which are in the ECCAM, which are one is pipeline, the R&D one is pipeline, the CSM, the other is the pipeline of product which are going to go to market from a development point.

Speaker #2: Now, that gets further multiplied by chemistry and biology. Then we look at policies and structures coming from electronics and specialty chemical segments. So, that's the bundle of the whole piece.

Mayank Singhal: Then we look at policies and structures coming for electronics and specialty chemicals segment. That is the bundle of the whole piece. We do not really have the breakup right now, but that is a large number. What I can say, very excitedly say from the NCE point of view, we have a good pipeline here. Our biological products, we have a pipeline. As you have seen, we have launched two products. We have another two or three to go in the pipe, and each one seems to be showing very good positive trajectory, very matured potentials.

Speaker #2: We don't really have the breakup right now, but that's a large number. What I can say is, very excited today from the NC point of view. You know, good pipelines here.

Mayank Singhal: What I can say, very excitedly say from the NCE point of view, we have a good pipeline here. Our biological products, we have a pipeline. As you have seen, we have launched two products. We have another two or three to go in the pipe, and each one seems to be showing very good positive trajectory, very matured potentials. For the electronics, the pipelines are larger, but the value propositions are different. I would say the pipeline is aggressive, if you were to ask me one summary line. It is interesting to see that some of these recruitifies will give us some great positive projection in the mid to long term.

Speaker #2: For our biological products, as you can see, we have launched two products. We have another two or three to go in the pipeline.

Speaker #2: And each one seems to be showing a very good positive trajectory. Given the potential—and for the electronics, the pipelines are larger, but the value propositions are different.

Mayank Singhal: For the electronics, the pipelines are larger, but the value propositions are different. I would say the pipeline is aggressive, if you were to ask me one summary line. It is interesting to see that some of these recruitifies will give us some great positive projection in the mid to long term.

Speaker #2: So they're different. So I would say the pipeline is aggressive, if you were to ask me one summary line. And it is interesting to see that some of these are fructified, which would give us some great positive trajectory in the mid to long term.

Speaker #1: Sure, sir. And you know, just on the comment that we had made regarding the launch of, you know, four to five molecules in FY27, would this be across only ECCAM, or does this include electronic chemicals and, you know, other products as well?

Operator 2: Sure, sir. Just on the comment that we had made, launching of four to five molecules in FY27, would this be across only AgChem or this includes electronic chemicals and other products as well?

Ankur Periwal: Sure, sir. Just on the comment that we had made, launching of four to five molecules in FY27, would this be across only AgChem or this includes electronic chemicals and other products as well?

Speaker #2: Yes, broadly in the ECCAM area this year, the electronic chemicals, and two would be about a couple of products, and one or two in the pharma, which is not being really covered yet.

Mayank Singhal: Broadly, in the AgChem area, this year. The electronic chemicals in two would be about a couple of products and one or two in the pharma, which has not been really covered here. The more in the health science where you would see that in that segment. Yeah.

Speaker #2: The more in the health science, then you would see that in that segment. Yeah.

Speaker #1: Okay, sure. And then, just a second bit on the comment regarding overall pricing, across ECCAM as well as the domestic agro business.

Operator 2: Okay, sure. Then just second bit on the comment on overall pricing across AgChem as well as the domestic agro business.

Ankur Periwal: Okay, sure. Then just second bit on the comment on overall pricing across AgChem as well as the domestic agro business.

Operator 3: Sorry to interrupt, Mr. Ankur. Sir, from the Mumbai line, there is an echo coming.

Operator: Sorry to interrupt, Mr. Ankur. Sir, from the Mumbai line, there is an echo coming.

Speaker #2: Sorry sorry.

Speaker #1: Mr. Uncle, sir, from the Mumbai line, there's an echo coming.

Operator 2: Is it fine now? You can hear me?

Ankur Periwal: Is it fine now? You can hear me?

Speaker #2: Is it fine now? Can you hear me? Yeah, yeah, go ahead, go ahead. Please go ahead.

Mayank Singhal: Yeah. Go ahead. Go ahead.

Operator 3: There is still some echo.

Operator: There is still some echo.

Mayank Singhal: Maybe that is all right. Please go ahead.

Operator 2: Sure. I will probably talk slightly slower. On the pricing front overall, across AgChem CSM, as well as the domestic agrochemical side, we have seen some bit of pricing pressure in Q1 as well. Your thoughts if this is some product specific issue or it is general trend across the products.

Ankur Periwal: Sure. I will probably talk slightly slower. On the pricing front overall, across AgChem CSM, as well as the domestic agrochemical side, we have seen some bit of pricing pressure in Q1 as well. Your thoughts if this is some product specific issue or it is general trend across the products.

Speaker #1: Sure. I'll probably talk slightly slower. On the pricing front, overall, across agro chem CSM as well as the domestic agro chemical side, we have seen some bit of pricing pressure in Q1 as well.

Speaker #1: Your thoughts—if this is some product-specific issue, or is it a general trend across the products?

Speaker #2: You know, to give you the input to the pricing pressure—you see, the demand cycle has been challenged. Automatically, that puts pressure on price.

Mayank Singhal: Just to give you the input to the pricing pressure, you see the demand side still has been challenged. Automatically, that puts pressure on price. You have seen the last year performance in the Ag industry has not been that aggressive, followed with the commodity prices have not picked up. These are directors which put up directives to the pricing pressure, but also the other challenge, the consumption pattern is not high. That is the pricing pressure. On the other hand, you have the challenge of the input cost. Striking that fine balance is the challenge in the industry today. You can see that in the CAGRs of the global companies which are facing this challenge, both on the input and selling price fronts.

Speaker #2: You've seen that the last year's performance in the ag industry has not been that aggressive. Coupled with the fact that commodity prices have not picked up, these are factors which put up directives to the pricing pressure.

Speaker #2: But also, the other challenge is that the consumption pattern is not high. Once these—so this is the pricing pressure. On the other hand, you have the challenge of the input cost.

Speaker #2: So, tightening that fine balance is the challenge in the industry today. And you can see that in the CAGRs of the global companies, which are facing this challenge both on the input and the selling price front.

Mayank Singhal: You can see that in the CAGRs of the global companies which are facing this challenge, both on the input and selling price fronts. In certain cases, segments and companies which have one or two or simple generic products which are large, where they have a pricing pressure and have been able to pass to the lower end of the value chain. That has been the situation. But pricing pressures are there. I believe this will be better answered starting the Q2 as a global scenario, as how these market and commodity prices pan out.

Speaker #2: In certain cases, segments and companies which have one or two, or simple generic products which are large, where they have a pricing pressure, have been able to pass because they're at the lower end of the value chain.

Mayank Singhal: In certain cases, segments and companies which have one or two or simple generic products which are large, where they have a pricing pressure and have been able to pass to the lower end of the value chain. That has been the situation. But pricing pressures are there. I believe this will be better answered starting the Q2 as a global scenario, as how these market and commodity prices pan out. I am hoping, at least in my experience, I have not seen such a long gestation period of the cycle, that this final cycle breaks, and that is really what we all in this industry are betting on.

Speaker #2: So that's been the situation. But pricing pressures are there. I believe this will be better answered starting the second quarter, from a global scenario, as to how these markets and the commodity prices span out.

Speaker #2: And I'm hoping, at least in my experience, having seen such a long gestation period of the cycle, that finally this cycle breaks. And that's really what we all in this industry are betting on.

Mayank Singhal: I am hoping, at least in my experience, I have not seen such a long gestation period of the cycle, that this final cycle breaks, and that is really what we all in this industry are betting on.

Operator 2: Sure, sir. Thanks a lot for your answers. I will get back into the queue if I have more. Thank you.

Ankur Periwal: Sure, sir. Thanks a lot for your answers. I will get back into the queue if I have more. Thank you.

Speaker #1: Sure, sir. Thanks a lot for your answers. I'll get back into the queue if I have more. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question comes from the line of Tejas Pradhan with Citi Group. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Tejas Pradhan with Citigroup. Please go ahead.

Operator: Thank you. The next question comes from the line of Tejas Pradhan with Citigroup. Please go ahead.

Speaker #4: Yeah, hi, sir. Firstly, on the guidance for FY27, you had earlier indicated that you would expect some sort of growth this year.

Tejas Pradhan: Yeah. Hi, sir. Firstly, on the guidance for FY27, you had earlier indicated that you would expect some sort of a growth this year. Would you reiterate that or any change on that front?

Speaker #4: Would you re-trade that, or any change on that front?

Speaker #2: Sorry, I didn't get your question—it was a bit muffled at the end. What was it?

Mayank Singhal: Sorry, I did not get your question. It was a bit muffled at the end. What was it?

Tejas Pradhan: On the FY27 revenue growth guidance.

Speaker #4: on the revenue FY27 revenue growth guidance.

Speaker #2: You see, when we stated earlier, we are looking at a positive trajectory, and on the lower single digits, as indicated earlier. But again, it depends on the cycle and the industry—it could go one way or the other.

Mayank Singhal: You see, as we stated earlier, we are looking at a positive trajectory and on the lower single digits as indicated earlier. But again, it depends on the cycle and the industry. It could go one way or the other, but that is what we are confident for right now and maintain the same as we said earlier.

Speaker #2: But that's what we are confident about right now, and we maintain the same guidance as we said earlier.

Speaker #4: Okay, understood. And on the EBITDA margin front, considering the different product mix that you would have scheduled through the year, how should we look at the margins?

Tejas Pradhan: Okay, understood. On the EBITDA margin front, considering the different product mix that you have scheduled through the year, how should we look at the margins? Should we assume the run rate that we have seen in the last couple of quarters, or any material change in the mix that we can see towards Q2, Q3?

Speaker #4: Should we assume the run rate that we have seen in the last couple of quarters, or is there any material change in the mix that we can expect towards the second or third quarters?

Speaker #2: The margins are not that straightforward, as you would appreciate, given the geopolitical situation, the commodity prices, and the logistics and scenarios. But at the product level, product mix, we will try and maintain—with the optimization that the company is trying to do—to manage and look at meeting the targeted gross margins.

Mayank Singhal: Margins are not that straightforward as you would appreciate, given the geopolitical situation, the commodity prices, and the logistics and scenarios. But at the product level, product mix we will try and maintain with the optimization that the company is trying to do is to manage and look at meeting the targeted gross margins. There could be challenges from a contraction. That could become a challenge, but company saying how we optimize those areas. Not necessarily product mix is something the only answer to that solution. Again, opportunities may change with margins and structures. To answer objective very precisely, our objective is to keep and sustain our gross margins at the best possible levels by optimizing and being agile, given the best situation to be managed with the industry scenario in the volatile world that we are in today.

Speaker #2: There could be challenges from a contradiction or contraction that could become a challenge, but companies are saying, how do we optimize it? Those areas. Not necessarily, product mix is the only answer to that solution.

Speaker #2: Again, opportunities may change with margins and structures. So that's the way we have. So, to answer objectives very precisely, our objective is to keep and sustain our gross margins at the best possible levels by optimizing and being agile, given the best situation to be managed for the industry scenario.

Mayank Singhal: To answer objective very precisely, our objective is to keep and sustain our gross margins at the best possible levels by optimizing and being agile, given the best situation to be managed with the industry scenario in the volatile world that we are in today.

Speaker #2: In the volatile world that we are in today.

Speaker #4: Sure, thanks. And just lastly, could you share the contract asset number for June 26th?

Tejas Pradhan: Sure. Thanks. Just lastly, could you share the contract asset number for June 2026?

Speaker #2: Yeah, it's around 750-odd crores.

Mayank Singhal: It is around 750 odd crores.

Speaker #4: sorry come again.

Tejas Pradhan: Sorry, come again.

Speaker #2: For the year, you're looking for the contract assets for the year—the order book position?

Mayank Singhal: For the year? You are looking for the contract assets for the year or the order book position?

Speaker #4: Oh June 26th.

Tejas Pradhan: June 2026.

Speaker #2: June 26th. We don't come in, I don't have that number exactly here, but I think as we typically disclose about $1.2 billion order book position standards, which are running around here.

Mayank Singhal: I do not have that number exactly here. But I think typically disclosed about $1.2 billion order book position standard, which I run around, yeah.

Speaker #4: Okay sure thanks.

Tejas Pradhan: Okay. Sure. Thank you, sir.

Speaker #1: Thank you. The next question comes from Rohit Nagaraj with 361 Capital. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Rohit Nagraj with 360 ONE Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Rohit Nagraj with 360 ONE Capital. Please go ahead.

Speaker #3: Yeah, thanks for the opportunity. So, first question is on Payak, Sanjay, Liprol. You mentioned that in the domestic market we are currently in advanced stages. So, when do we expect the commercial launch in the domestic market, and what are the timelines that we are looking at in the other geographies, given that we have started the process of registering the product?

Rohit Nagraj: Yeah. Thanks for the opportunity. First question is on pyoxasofen and liraglutide. You mentioned that in domestic market we are currently in advanced stages. When do you expect the commercial launch in domestic market and what are the timelines that we are looking at in the other geographies given that we have started the process of registering the product? Thank you.

Speaker #3: Thank you.

Speaker #2: Hopefully, depending on the regulatory framework, we expect to have an early start this year. If the season is more positive, it's not a different challenge.

Mayank Singhal: Hopefully, depending on the regulatory framework, we expect to have early start this year. If the season is more positive, it is not a different challenge. We are hoping within the year we should get the launch for India. On the other geographies, we will be planning with the local regulatory data coming in from the geographies, one coming up for one geography next year and the one for the year after. That is the plan for now.

Speaker #2: But we're hoping within the year we should get the launch for India. On the other geographies, we will be filing with the local regulatory data coming in from those geographies—one coming up for one geography next year, and another for the year after.

Speaker #2: That's the plan for now.

Rohit Nagraj: Sure. Thank you. Second question is on the contribution of the new products in our CSM segment during Q1. What was the percentage of contribution from that?

Speaker #3: Sure, thank you. And my second question is on the contribution of the new products in our CSM segment during Q1. What was the percentage contribution from that?

Speaker #2: Fifteen to eighteen percent. Sixteen to eighteen percent.

Mayank Singhal: 16% to 18%.

Rohit Nagraj: 16% to 18%? Hello?

Speaker #3: Hello hello.

Speaker #2: Yes. Okay.

Mayank Singhal: Yes.

Speaker #3: Okay, sure. Thanks a lot, and all the best.

Rohit Nagraj: Okay. Sure. Thanks a lot and all the best. Thank you.

Speaker #2: Thanks a lot. Thank you.

Mayank Singhal: Thank you.

Operator 3: The next question comes from the line of Surya Narayan with PhillipCapital (India) Pvt Ltd.. Please go ahead.

Operator: The next question comes from the line of Surya Narayan with PhillipCapital (India) Pvt Ltd.. Please go ahead.

Speaker #1: The next question comes from the line of Surya Narayan with PhillipCapital India. Please go ahead.

Speaker #4: Yeah, thanks for the opportunity, sir. My first question is on the new launch peptide product that we have talked about—the biological one in the US.

Surya Narayan Patra: Yeah. Thanks for the opportunity, sir. My first question is on the new launch peptide product that we had talked about, biological one in the US. Is it relating to the pharma or agri?

Speaker #4: Is it related to pharma or agri?

Speaker #2: It's not at the product launch. We have more in the CRDMO play. So just to clarify, this is more in the agri, as you would see in the investor deck and in my communication.

Mayank Singhal: A lot of the products launch, we are more on the CRDMO play. Just to clarify, this is more on the agri as you would feel invested that in my communication.

Speaker #4: Mm-hmm. Okay, sure, it is in the agri-related segment. And also, if you can talk something more about that, sir—am I audible? Am I audible?

Surya Narayan Patra: Okay, sure. It is agri related. Also if you can talk something more about the. Sir, am I audible?

Speaker #2: Yes yes.

Mayank Singhal: Yes.

Surya Narayan Patra: Yeah. If you can also talk something about the new molecules, three molecules that has been launched for the export market and any visibility, commercial success about those and the line of the product. Anything on that you can add on that.

Speaker #4: Yeah, yeah. So if you can also talk a little about the new molecules—the three molecules that have been launched for the export market—and any visibility regarding commercial success for those, and the product line. If there’s anything you can add on that, please do.

Speaker #2: These are for agri applications. The new generation products that we are working on with global innovators—that's the only level of information I can really disclose for today, because they're still under development and confidential in nature.

Mayank Singhal: These are for agri applications. They are new generation products, which we are working with global innovators. That is the only level of information I can really disclose for today because they are still under development phases and confidential in nature.

Speaker #4: Sure. Okay, okay. My next question is on the Capex side. See, in fact, despite the industry challenges and all that, our Capex momentum is very, very steady and consistent on that front.

Surya Narayan Patra: Okay. My next question is on the CapEx side. In fact, despite of the industry challenges and all that, our CapEx momentum is very steady and consistent on that front. This quarter also, it looks like more than INR 250 to 260 odd crore kind of a number that we are looking at. So what is driving these CapEx investments and what would be the full-year CapEx guidance that you can talk about for current year?

Speaker #4: This quarter also, it looks like more than ₹250 to ₹260 crore kind of a number that we are looking at. So, what is driving these Capex investments, and what would be the full-year Capex guidance that you can talk about for the current year?

Speaker #2: So, I think, just to give you that, we have given a guidance of ₹700 to ₹800 crores, which is the standard Capex, as you rightly said.

Mayank Singhal: Well, I think just to give you the, we have given a guidance of INR 700 to 800 crores, which is a standard CapEx, as you rightly said. Our present investment is INR 250. They are going into three verticals. The existing manufacturing as needing investments and our investments going to our new verticals and our innovation-led approaches in geographies and products.

Speaker #2: Our present investment is $250 million. They are going into three verticals: the existing manufacturing assets—meaning investments—and investments going to our new verticals.

Speaker #2: Our new verticals and our innovation-led approaches in geographies and products.

Speaker #4: Okay, okay. Just one clarification about the export growth number that we have indicated in the presentation. We have mentioned that there is a volume decline of 8%, while the value decline is 12%.

Surya Narayan Patra: Okay. Just one clarification about the export growth number that we have indicated in the presentation. We have mentioned that there is a volume decline of 8% while value decline is 12%. But if I see the rupee depreciation benefit, that itself on a year-on-year basis is around 13 odd percentage. If I just consider 8% volume decline, that would have been easily covered up by the kind of rupee depreciation benefit that we should have seen in this quarter. What is the disconnect that I am finding here, sir?

Speaker #4: But if I see the rupee depreciation benefit, that itself on a year-on-year basis is around thirteen-odd percent. So if I just consider the eight percent volume decline, that would have been easily covered up by the kind of rupee depreciation benefit that we should have seen in this quarter.

Speaker #4: What is the disconnect that I am finding here, sir?

Speaker #2: It happened that you asked me this question at the time. In the early days, I remember when the rupee was appreciating, people were asking why that was.

Mayank Singhal: Well, happy that you ask me this question. At the time of the early days, I remember when the rupee was appreciating people were asking, "Oh, why is that?" I think our business manufacturing approach has been a pass-through model of value propositioning. Right?

Speaker #2: So, I think our MA business manufacturing approach has been a pass-through model, a value propositioning, right?

Speaker #4: Mm-hmm.

Speaker #2: So, certain areas have currency benefits and certain areas have non-currency benefits. Optimization is about managing margins at the optimum level, so that is really the way we have looked at the currency benefits.

Mayank Singhal: Certain areas currency benefits and certain areas non-currency benefits. Optimization is about managing margins at the optimum level. That is really the way we have looked at the currency benefits. And that's how it gets through. It's a complex model for PI, as we discussed in the past, because currency benefits around value benefits are shared. Also we have currency risk management, which is also put into play. Given that our business is not of currency, but our business is more about the product and market that we want to sustain.

Speaker #2: And that's how it gets through. So it's a complex model for PI, as we discussed in the past, because currency benefits and value benefits are shared.

Speaker #2: And also, we have added currency risk management, which is also put into play. Given that our business is not about currencies, but our business is more about the product and the market that we want to sustain.

Mayank Singhal: Also we have currency risk management, which is also put into play. Given that our business is not of currency, but our business is more about the product and market that we want to sustain.

Speaker #4: Sure, sir. Just one last point from my side. Regarding the domestic growth, we have seen a volume decline of 12 percent in the current quarter.

Surya Narayan Patra: Sure, sir. Just one last point from my side.

Surya Narayan Patra: Regards the domestic growth, we have seen volume decline of 12% in the current quarter. Obviously, this is because of the delayed sowing and-

Speaker #4: Obviously, this is because of the delayed soil and

Speaker #2: We have done sorry just for correction. We are the only few who have grown at twelve percent volume. Because of the decline. It's a growth in the volume.

Mayank Singhal: We are not doing just a correction. We are the only few who have grown at 12% volume.

Surya Narayan Patra: Yeah. 12% volume.

Mayank Singhal: It's not a decline, it's a growth in the volumes.

Speaker #4: Oh, okay. Sorry, that was my mistake. Yeah. Thank you, sir. Thank you, sir. Thank you for answering my question.

Surya Narayan Patra: Oh, okay. Sorry. That is my mistake. Yeah. Thank you, sir. Thank you for answering my question.

Speaker #1: Thank you. The next question comes from the line of Sanjay Kumar. I thought PMS. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Sanjay Kumar with ITARTE MFPS. Please go ahead.

Operator: Thank you. The next question comes from the line of Sanjay Kumar with ITARTE MFPS. Please go ahead.

Sanjay Kumar: Hi. Thanks for the opportunity. We seem to have INR 550 crores of expenses in pharma. We are doing more CapEx in AgChem. Has this acquisition not worked out? Also, can you give the list of molecules we are working on in pharma? Of these, how many are in late stage, say phase III and commercial?

Dhimant Kothari: Hi. Thanks for the opportunity. We seem to have INR 550 crores of expenses in pharma. We are doing more CapEx in AgChem. Has this acquisition not worked out? Also, can you give the list of molecules we are working on in pharma? Of these, how many are in late stage, say phase III and commercial?

Speaker #4: Hi, thanks for the opportunity. We seem to have ₹550 crore of expenses in pharma, and we are doing more capex in narcotica. So, as this acquisition has not worked out, also, can you give the list of molecules we are working on in pharma?

Speaker #4: Of these, how many are in mid-stage—say, phase three and commercial?

Speaker #2: Okay, so I think I just want to clarify the strategy for you. We are not in the business of molecules; we are in the business of services.

Mayank Singhal: Okay. I just want to clarify the strategy. We are not in the business of molecules. We are in the business of services, where we do contract manufacturing for products and drugs which are under development or at early stage development. That is what is called CRDMO. That is really where we are focusing. We cannot be disclosing patented or to-be-patented molecules reports because they are not our products, till they become products and they were globally known.

Speaker #2: And we do contract manufacturing for products and drugs which are under development or at an early stage of development. That's what's called CRDMO. That's really where we are focusing.

Speaker #2: So, we cannot be disclosing patented or to-be-patented molecules at courts because they are not our products—until they become products and are globally known.

Speaker #2: On the other hand, just to answer—yes, as you would understand, the contract manufacturing business has a long gestation period. Because you’re starting to work in the pharma sector, as you would all appreciate—and you know better than me—you need to start with the customer at the early stage of development. Then, through the development stage you support them, and then manage it to commercialize and scale. Then it goes to volume growth.

Mayank Singhal: On the other hand, just to answer, yes, as you would understand, the contract manufacturing business has a long gestation period because you are starting to work in the pharma sector, as you would all appreciate and you know better than me, that you need to start with the customer, the early stage of development, then through the development stage, you support and then when it gets to commercialization scale, then goes to volume growth. So investments in the regulatory framework because the regulatory requirements need to be made upfront so that you are part of that value chain. As product progress, we are able to optimize. So usually the CRDMO in pharma is a long gestation J-curve. That is how I would answer that.

Speaker #2: So, investments in the regulatory framework are required because the regulatory requirements need to be met upfront so that, as product progresses, we are able to optimize. So, usually, the CRDMO and pharma is a long gestation J-curve.

Mayank Singhal: As product progress, we are able to optimize. So usually the CRDMO in pharma is a long gestation J-curve. That is how I would answer that.

Speaker #2: That's how I would answer that.

Speaker #4: No, I understand. These are lists that other CRDMO companies provide. Anyway, second question on pyroxasulfone's efficacy. It's a diamide belonging to the same class as CTPR.

Sanjay Kumar: I understand because other CRDMO companies give that list. Anyway, second question on pyoxasofen efficacy. It is a diamide belonging to the same class as CTPR. I tried to look up data as to what is the efficacy against many of these pests. How do you compare it with CTPR? Is this a flow chemistry based manufacturing process and what is the out licensing potential?

Dhimant Kothari: I understand because other CRDMO companies give that list. Anyway, second question on pyoxasofen efficacy. It is a diamide belonging to the same class as CTPR. I tried to look up data as to what is the efficacy against many of these pests. How do you compare it with CTPR? Is this a flow chemistry based manufacturing process and what is the out licensing potential?

Speaker #4: And I tried to look up data as to what is the efficacy against many of these pests. How do you compare it with CTPR?

Speaker #4: Is this a flow chemistry-based manufacturing process, and what is the out-licensing potential?

Speaker #2: Well, we are not benchmarking it to CTPR. Diamide doesn't mean it is only CTPR; CTPR is a diamide. There are many diamides which are working in different segments, on different pests, at different stages.

Mayank Singhal: Well, we are not benchmarking it to CTPR. Diamide doesn't mean it is only CTPR is a diamide. There are many diamides which are working in different segments at different pests at different stages. So we have a different value proposition for our product, right? But yes, it is in the diamide class and in that segment, but with a differentiated approach. So that is one clarity. Clearly, we see good potential for the certain amount of crops where we see the advantage of this product compared to competing landscape. That is also creating initiative in any dialogues to look at partnerships and global footprint.

Speaker #2: So, when we have a different value proposition for our product, right? But yes, it is in the diamide class and in that segment, but with a differentiated approach.

Speaker #2: So that's one clarity. Clearly, we see good potential for a certain amount of crops where we see the advantage of this product. Compare the competing landscape.

Speaker #2: And that is also creating initiative in any dialogues to look at partnerships and global footprint.

Speaker #4: Okay, last question. On our largest molecule today, I believe we have developed flow chemistry process capabilities. Does this help in our EBITDA margins, and what is our relationship with our partner?

Mayank Singhal: Okay, last question. On our largest molecule today, I believe we have developed flow chemistry process capabilities. Does this help in our EBITDA margins, and what is our relationship with our partner? Is there a possibility of the partner shifting to lower cost suppliers?

Speaker #4: Is there a possibility of the partner shifting to lower-cost suppliers?

Speaker #2: Well, I do not want to dwell into the commercial negotiation and contracting with our partners, because that's again tied under ND and CD, as you would appreciate.

Mayank Singhal: Well, I do not want to dwell into the commercial negotiation and contracting with our partners. Because that's, again, Thailand, India, and CIS would appreciate. Clearly, we are a very long-term strategic partnership, which is aligned together for over five decades. And we believe we will co-create and co-compete to take on the competition as things come, through technology, through innovative dialoguing and discussions to look at the markets. So we don't see a challenge from that perspective with our partner.

Speaker #2: Clearly we have a very long term strategic partnership which is aligned together for over five decades. And we believe we will co co create and co co compete to take on the competition as things come.

Speaker #2: Through technology, through innovative dialoguing and discussions, we look at the markets. So we don't see a challenge from that perspective with our partner.

Operator 3: Got it. Thank you, sir. I'll come back in the queue. Abhijit, your line has been unmuted. Please go ahead with your question.

Dhimant Kothari: Got it. Thank you, sir. I'll come back in the queue.

Speaker #4: Got it, got it. Thank you, sir. I'll come back in the queue.

Speaker #1: Abhijit, your line has been unmuted. Please go ahead with your question.

Operator: Abhijit, your line has been unmuted. Please go ahead with your question.

[Analyst] (Kotak Securities): Hi. Good afternoon. Can you hear me?

Abhijit Akella: Hi. Good afternoon. Can you hear me?

Speaker #4: Hi, good afternoon. Can you hear me?

Speaker #1: Yes sir.

Operator 3: Yes, sir.

Operator: Yes, sir.

Speaker #4: Okay, thank you. Just a couple of clarifications, if I may. One is the order book number. I just wanted to clarify—I think you cited a number of $1.2 billion previously, a little earlier on the call.

[Analyst] (Kotak Securities): Okay. Thank you. Just a couple of clarifications, if I may. One is, the order book number, I just wanted to clarify, I think you cited a number of $1.2 billion previously, a little earlier on the call. Is that the correct number? Did I catch it correctly?

Abhijit Akella: Okay. Thank you. Just a couple of clarifications, if I may. One is, the order book number, I just wanted to clarify, I think you cited a number of $1.2 billion previously, a little earlier on the call. Is that the correct number? Did I catch it correctly?

Speaker #4: Is that the correct number? Did I catch it correctly?

Sanjay Agarwal: The order book you are asking, right?

Speaker #2: The order book you are asking about, right?

Speaker #4: Yeah, that's right. Yeah, that's right.

[Analyst] (Kotak Securities): Yeah, that's right.

Abhijit Akella: Yeah, that's right.

Speaker #2: Correct.

Sanjay Agarwal: Correct.

Speaker #4: Okay, so that is the table sequentially, basically.

[Analyst] (Kotak Securities): Okay. That is stable sequentially, basically.

Abhijit Akella: Okay. That is stable sequentially, basically.

Speaker #2: Yes.

Sanjay Agarwal: Yes.

Speaker #4: Okay. And on the contract asset side, Sanjay, I think in response to a previous question, you mentioned the number of 750 crores. Did I catch that correctly as well, or is there some correction there?

[Analyst] (Kotak Securities): Okay. On the contract asset side, Sanjay, I think in response to a previous question, you mentioned the number of INR 750 crores. Did I catch that correctly as well, or some correction there?

Abhijit Akella: Okay. On the contract asset side, Sanjay, I think in response to a previous question, you mentioned the number of INR 750 crores. Did I catch that correctly as well, or some correction there?

Sanjay Agarwal: No, that is also right.

Speaker #2: No that's also right.

Speaker #4: Okay, all right. And then just one final thing on the domestic business. You know, when we look at PI's peers that have reported so far, they've generally talked about soft volume growth but, you know, a lot of price-driven increase in revenues.

[Analyst] (Kotak Securities): Okay. All right. Just one final thing on the domestic business. When we look at PI's peers that have reported so far, they have generally talked about soft volume growth, but a lot of price-driven increase in revenues given just the pricing inflation post the Ukraine war. In our case, it seems to be the exact opposite. Pricing under pressure, but volumes growing double digits. Any color or any comments on just what the disconnect might be?

Abhijit Akella: Okay. All right. Just one final thing on the domestic business. When we look at PI's peers that have reported so far, they have generally talked about soft volume growth, but a lot of price-driven increase in revenues given just the pricing inflation post the Ukraine war. In our case, it seems to be the exact opposite. Pricing under pressure, but volumes growing double digits. Any color or any comments on just what the disconnect might be?

Speaker #4: Given just the pricing inflation post the Iran war, in our case, it seems to be the exact opposite. You know, pricing is under pressure, but volumes are growing double digits.

Speaker #4: So, I mean, any color or any comments on just what the, you know, disconnect might be?

Mayank Singhal: On a lighter note, yes. Our approach has been to push and create market share with our products which were moving in that market share and not look at price softening. Price escalation has purely happened in the generic product ranges, because that is where the commodities impact more. Basically, increase in commodities, yeah.

Speaker #2: The industry is, on a lighter note, yes. Our approach has been to push and create market share with our products, which were moving in that market share, and not look at price softening.

Speaker #2: Note that price escalation has primarily happened in the high generic product ranges because that’s where the commodities impact more. So, basic EP in commodities, yeah.

Speaker #4: Okay, understood. Thank you so much.

[Analyst] (Kotak Securities): Okay, understood. Thank you so much.

Abhijit Akella: Okay, understood. Thank you so much.

Speaker #1: Thank you. The next question comes from the line of Riju with Antique Stock Broking. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Riju with Antique Stock Broking. Please go ahead.

Operator: Thank you. The next question comes from the line of Riju with Antique Stock Broking. Please go ahead.

[Analyst] (Antique Stock Broking): Yeah. Hi, sir. A few bookkeeping questions. If I look at your subsidiary financials data, the EBIT comes roughly at INR 120 crore loss. But the pharma EBIT has roughly around INR 60 crore loss. What is the disconnect, or why we are spending our money in the subsidiaries? If you could explain that.

Riju Dalui: Yeah. Hi, sir. A few bookkeeping questions. If I look at your subsidiary financials data, the EBIT comes roughly at INR 120 crore loss. But the pharma EBIT has roughly around INR 60 crore loss. What is the disconnect, or why we are spending our money in the subsidiaries? If you could explain that.

Speaker #4: Yeah, hi sir. A few bookkeeping questions. So, if I look at your subsidiary finances data, the EBIT comes roughly at 120 crore loss, but the pharma EBITDA is roughly around 60 crore loss.

Speaker #4: So, what’s the disconnect, or like where we are, you know, spending our money in the subsidiaries? If you could explain that.

Sanjay Agarwal: In the business, there are several other new initiatives which we've built up over last few years. The losses or the ramp-up of investment is what you're capturing between standalone to consolidated.

Speaker #2: Right. The the business there are several other business I mean several other new initiatives which we have been which we have built up over last few years.

Speaker #2: And the I mean the the losses or the the ramp up of investment is what you are capturing between standalone to consolidated. So let me take that example to be very specific rather than we are right now in our global biological business investing heavily in market development activities as Sanjay stated earlier.

Mayank Singhal: Let me take that example to be very specific rather than. We are right now in our global biological business investing heavily in market development activities, as Sanjay stated earlier, 1,000 pharma interactions, 500 demonstrations in global geographies. To bring satisfaction over a couple of seasons, that is expected to earn revenue at a later stage. These require human resources, because this business is more about stock investments. Those stock investments come in the P&L as a part of expenses. That's really the challenge and that's really, and you will call it losses, which is equated to investments in my view, because you're building investments to create business for the future. Whereas from a financial angle, you're right, it looks like losses.

Speaker #2: One thousand pharma interactions, five hundred demonstrations, global geographies. And to bring satisfaction over a couple of seasons. And that is expected to earn revenue at a later stage.

Speaker #2: These require human resources, which are in and human, because this business is mobile stuff investments. And those stuff investments come in the P&L as a part of expenses.

Speaker #2: So that's really the challenge, and that's really—and you may call it good P&L losses, which is equated to investments in my R&D, because you're building investments to create business for the future.

Mayank Singhal: That's really the challenge and that's really, and you will call it losses, which is equated to investments in my view, because you're building investments to create business for the future. Whereas from a financial angle, you're right, it looks like losses.

Speaker #2: Whereas, from a financial angle, you're right; it looks like losses.

Speaker #4: So, sir, to summarize this—if I can look at it in terms of numbers perspective—overall, you are spending the money in terms of building the biological business across the other geographies.

[Analyst] (Antique Stock Broking): So, sir, to summarize this, if I can look at in terms of numbers perspective, overall you are spending the money in terms of building biological business across the other geographies. This investment that you are doing at which is the. Is that correct understanding?

Riju Dalui: So, sir, to summarize this, if I can look at in terms of numbers perspective, overall you are spending the money in terms of building biological business across the other geographies. This investment that you are doing at which is the. Is that correct understanding?

Speaker #4: So this investment that you are doing at the PAC, is that the correct understanding?

Speaker #2: Sorry, I didn't get your question clearly. Hello?

Mayank Singhal: Sorry, I didn't get your question clearly. Hello?

Speaker #4: Yeah, so, so... yeah, so, so, so.

[Analyst] (Antique Stock Broking): Yeah.

Riju Dalui: Yeah.

Mayank Singhal: Your voice is not coming clear. Can you repeat, please?

Speaker #2: So, what is not coming through clearly? Can you please repeat?

Speaker #4: Yeah, so my question was regarding the additional loss at the EBIT level for the subsidiary. So, you are saying that this is mainly towards the biological business development, apart from the pharma one.

[Analyst] (Antique Stock Broking): Yeah. My question was regarding the additional loss at the EBIT level for a subsidiary. You are saying that this is mainly towards the biological business development apart from the pharma one, so biological business development and related to the PHC subsidiaries that we have acquired earlier. Is that correct understanding?

Riju Dalui: Yeah. My question was regarding the additional loss at the EBIT level for a subsidiary. You are saying that this is mainly towards the biological business development apart from the pharma one, so biological business development and related to the PHC subsidiaries that we have acquired earlier. Is that correct understanding?

Speaker #4: So, biological business development, and the related PHC subsidiaries that we have acquired earlier. Is that a correct understanding?

Speaker #2: Yeah I think sort of what we can get gather completely. But yeah these are new businesses whether it is pharma business or the global biological business which is where where we are front loading the investment so that we get the growth in the I mean in the next few years.

Sanjay Agarwal: Yeah, I think what I couldn't get completely. But yeah, these are new businesses, whether it is pharma business or the global biologicals business, which is where we are front-loading the investment so that we get the growth in the next few years.

Speaker #4: Okay, so understood. So, these kinds of expenses will go on maybe for the next few quarters. Is that a correct assumption?

[Analyst] (Antique Stock Broking): Okay. Understood. These kind of expenses will go maybe for next few quarters. Is that correct assumptions?

Riju Dalui: Okay. Understood. These kind of expenses will go maybe for next few quarters. Is that correct assumptions?

Speaker #2: Yes. See, understand, we are building new technologies, right? New capabilities. They need investments up front to demonstrate benefit to the end consumer. Once they are well established in the capabilities and the others are well established...

Mayank Singhal: Yes. See, understand, we are building new technologies, right, new capabilities. They need investments upfront to demonstrate benefit to the end consumer. Once they are well-established, and the capabilities in the others are well-established, the revenues and the business starts taking off. Without this investment, you cannot achieve growth and scale, which we wish to. I hope that answers.

Speaker #2: The revenues, and the business, start taking off. Without this investment, you cannot achieve the growth and scale which you wish to. Yeah. I hope that answers.

Speaker #4: Yeah, understood, sir. Thank you. Thanks for the clarification. And one last question regarding the pharma business. So, this time, we have mentioned that a few of our order book items got delayed to the next, and then the delivery schedule was delayed.

[Analyst] (Antique Stock Broking): Understood, sir. Thank you. Thanks for the clarification. One last question regarding the pharma business. This time we have mentioned that a few of our order book got delayed to the next, and then the delivery schedule delayed. If you quantify that number in the pharma business, are you still maintaining our pharma business guidance that we have given earlier?

Riju Dalui: Understood, sir. Thank you. Thanks for the clarification. One last question regarding the pharma business. This time we have mentioned that a few of our order book got delayed to the next, and then the delivery schedule delayed. If you quantify that number in the pharma business, are you still maintaining our pharma business guidance that we have given earlier?

Speaker #4: So, if you quantify that number in the pharma business, are you still, you know, maintaining our pharma business guidance that we have given earlier?

Speaker #2: Yeah, so let me answer. You know, I think the core of our business is working with you in a way to create new products and new technologies.

Mayank Singhal: Let me answer. As you know, the CRDMO business is working with new innovators, new products, and new technologies. Clearly, sometimes there are sequential delays, but eventually they come if you are locking the customer. These delays are driven from that. We look at the guidance, unless we see some shifts which could take place based on moving some products from one quarter to the other, or the demand shifting from that one quarter to the other based on launches or based on product demand. Primarily, the revenue gets securitized, so that is how this business is reflected with CRDMO. We are in the early stages, and we have more volatility, to be very honest and frank, because our portfolio levels are very small. The minute we scale and more customers and portfolios expand, the volatility, the standard deviation reduces.

Speaker #2: And clearly sometimes there are sequential delays, but eventually they come if you're locking the customer. So, these delays are driven from that. We look at the guidance, unless we see some shifts which could take place based on moving some products from one quarter to another, or the demand shifting from that one quarter to another based on launches or based on product demands.

Speaker #2: Primarily, the revenue gets securitized, so that's how this business is reflected in the CRDMO. And we are in the early stages, and we have more volatility, to be very honest and frank, because our portfolio levels are very small.

Mayank Singhal: We are in the early stages, and we have more volatility, to be very honest and frank, because our portfolio levels are very small. The minute we scale and more customers and portfolios expand, the volatility, the standard deviation reduces. That is the strategy that we take bank with.

Speaker #2: The minute we scale and more customers and portfolios expand, the volatility—deep standard deviation—reduces. And that's the strategy that we take time to build.

Mayank Singhal: That is the strategy that we take bank with.

Speaker #2: Yeah?

Speaker #4: Understood, sir. Thanks for clarifying all my questions.

[Analyst] (Antique Stock Broking): Understood, sir. Thanks for clarifying all my questions.

Riju Dalui: Understood, sir. Thanks for clarifying all my questions.

Speaker #1: Thank you. The next question comes from the line of Siddharth Gadikar with the query. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Siddharth Rangnekar with Equirus. Please go ahead.

Operator: Thank you. The next question comes from the line of Siddharth Rangnekar with Equirus. Please go ahead.

Siddharth Rangnekar: Hi, sir. If we look at the last three, four years, we have seen our R&D expenses almost increasing from INR 100 crore to INR 400 crore, plus our subsidiary losses last year were around INR 300 crore. How should we look at these losses going ahead? Because even this quarter, we have seen almost INR 100 crore EBITDA loss in our subsidiaries, which is largely pertaining to the biologic business. Is there any timeline that where these businesses break even and how these expenses should be looked at over the medium term?

Speaker #4: Oh, hi sir. Please, if we look at the last three or four years, we have seen our R&D expenses almost increasing from 100 to close to 400.

Speaker #4: Plus, our subsidiary losses last year were around ₹300 crore. So how should we look at these losses going ahead? Because even this quarter, we have seen almost ₹100 crore EBITDA loss in our subsidiaries.

Speaker #4: which is largely pertaining to the biologic business. So, is there any timeline when these businesses might break even, and how should these expenses be looked at over the medium term?

Speaker #2: Yeah, I just want to clarify one thing, my friend. R&D, for us, is never a loss; it's value creation that we're doing.

Mayank Singhal: I just want to clarify one thing, my friend. R&D is to us is never a loss. It is a value to creation that we are doing. I think if you look at global benchmarking, this is one of the things that we are pushing India into the innovation bucket globally in any business. People are asking, "Why do companies spend how much money do they spend in research?" Research is creating value for sustainability, going for organizations into the future. Yes, this is strategic direction. We are passionate about R&D, and now not only passionate, we are now a performing company for R&D in the areas of our chosen field. This expense is going up. Yes, it creates EBITDA margin constraints with the operating day-to-day. But in the long term, it is a sustainable and growth accredited approach by investing in R&D to create scale and impact at a larger level.

Speaker #2: And I think if you look at global benchmarking, that's one of the things—when we're pushing India into the innovation bucket globally, in any business, people are asking: why, or do companies spend, how much money do they spend in research?

Speaker #2: Research is creating value for sustainable mobility for organizations into the future. Yes, this is a strategic direction. PI is passionate about R&D and now not only passionate, PI is now a performing company for R&D in the areas of our chosen field.

Speaker #2: This expense is going up. It yes it creates EBITDA margin constraints in the operating day to day. But in the long term it's a sustainable and growth growth accredited approach by investing in R&D to create scale and impact at a larger level.

Mayank Singhal: This expense is going up. Yes, it creates EBITDA margin constraints with the operating day-to-day. But in the long term, it is a sustainable and growth accredited approach by investing in R&D to create scale and impact at a larger level. So that is the way we are seeing. Yes, that is the investments, and I think we remain at that level of a certain percentage, at 3% to 4% investments of our revenues into research.

Speaker #2: So that's the way we are seeing it. Yes, that's the investments, and I think we remain at that level of a certain percentage—at three to four percent—investments of our revenues into research.

Mayank Singhal: So that is the way we are seeing. Yes, that is the investments, and I think we remain at that level of a certain percentage, at 3% to 4% investments of our revenues into research.

Speaker #4: Perfect. Can you, on the biologic business—last year we had an EBITDA loss of one twenty close in the global biologic business. Can we share these numbers on a quarterly basis, and how is this business shaping up?

Siddharth Rangnekar: Sir, secondly, on the biologics business, last year we had an EBITDA loss of INR 120 crore in the global biologic business. Can we share these numbers on a quarterly basis and how is this business shaping up? Because till the annual report is out, we do not get any color on how this business is going about, and suddenly we see an INR 120 crore EBITDA loss in that business where you have never highlighted that these are the kind of investments we have made in that business.

Speaker #4: Because till the annual report is out, we don't get any color on how this business is going, and suddenly we see a ₹120 crore EBITDA loss in that business where you have never highlighted that.

Speaker #4: These are the kinds of investments we have made in that business.

Speaker #2: Well, yes, because these are different phases of different developments. We will try and figure that out and put that across to you. But, yes, these are investments as well. I don't know whether you were up in the earlier question, which came from the earlier participant.

Mayank Singhal: Well, yes, because these are different phases of different developments. We will try and figure that out and put that across to you. But yes, these are investments as we. I do not know whether you were up in the earlier question which came from the earlier participant, where we expressed that these are investments for development to scale up revenue and establish credibility of the product. Because product innovation is one, product development is the other, then there is the revenue. So these are the development which is also treated a part of taking the product to the market or selling the technology to the consumer by demonstrating the performance of the product, right?

Speaker #2: Where we express that these are in these are these are investments for development to scale up revenue and establish credibility of the product. Because you know product innovation is one.

Speaker #2: Product development is the other. Then is the revenue. So, these are the developments which are also treated as part of taking the product to the market or selling the technology to the consumer.

Mayank Singhal: So these are the development which is also treated a part of taking the product to the market or selling the technology to the consumer by demonstrating the performance of the product, right?

Speaker #2: But demonstrating the performance of the product, right?

Speaker #4: Well, last year, how should we look at the peak sales of these products? Can you give some guidance on that? For example, the nematide that we are launching—what kind of peak sales do we expect from these products over the next three to five years?

Siddharth Rangnekar: Lastly, how should we look at the peak sales of these products? Can you give some guidance on that, like the Nemeteye that we are launching? What kind of peak sales do we expect from these products over the next three to five years?

Speaker #2: The demonstration trials to estimate. And I think, when you take in the technology, you look at the performance. I think where I would like to highlight, which I did in my speech, our technology outcome performance of the product is extremely successful.

Mayank Singhal: The demonstration trials, just a minute. I think when you have taken the technology, you look at the performance. I think where I would like to highlight, which I did in my speech, our technology outcome performance of the product is extremely successful. Now we are looking to see how it works in the field, which we are getting positive trajectory. Based on the satisfaction of that, we will be soon coming out to look at what is the potential we can look. But clearly, you would appreciate with our capability and understanding, we will not be chasing something which is not less than three digits in millions of dollars. That is really what we are chasing when you look at the innovation.

Speaker #2: Now we are looking to see how it works in the field, for which we are getting a positive trajectory, and based on the satisfaction of that, we will soon be coming out to look at what potential we can see. But clearly, you would appreciate, with our capability and understanding, we would not be chasing something which is less than three digits in millions of dollars.

Speaker #2: And that's really what we are chasing when you look at the innovation.

Mayank Singhal: That is really what we are chasing when you look at the innovation.

Speaker #4: Okay thank you. Thank you.

Siddharth Rangnekar: Okay. Thank you, sir.

Speaker #1: Thank you. The next question comes from the line of Anand Chen. Please go ahead.

Operator 3: Thank you. The next question comes on the line of Anand Chand. Please go ahead.

Operator: Thank you. The next question comes on the line of Anand Chand. Please go ahead.

Anand Chand: Thanks for the opportunity. My question is on biologics. So we have these product registrations in Brazil and US now, Tekko/ShaNema, and it is a very exciting nematicide product in biologics. Very clearly the advantage, as you have mentioned in the presentation, is because of the foliage application versus root application of the competition, which clearly gives us a right to win is how I think. If you could give us the market size of this product across various markets like Brazil, India, USA, that would be very helpful in assessing as how big this product could be. I remember in the Q4 call, it was said that Brazil market, from biologics point of view, will grow by 300%. So what was our size there? With India and US launch happening this year, what kind of growth can we expect in the biologics?

[Analyst]: Thanks for the opportunity. My question is on biologics. So we have these product registrations in Brazil and US now, Tekko/ShaNema, and it is a very exciting nematicide product in biologics. Very clearly the advantage, as you have mentioned in the presentation, is because of the foliage application versus root application of the competition, which clearly gives us a right to win is how I think. If you could give us the market size of this product across various markets like Brazil, India, USA, that would be very helpful in assessing as how big this product could be.

Speaker #4: Thanks for the opportunity. My question is on biologics. So we have these products' registrations in Brazil and the US now—Tico slash Sanema—and it's a very exciting nematocide product in biologics.

Speaker #4: And very clearly, the advantage, as you have mentioned in the presentation, is because of the foliage application versus root application of the competition, which clearly gives us a right to win, is how I think.

Speaker #4: If you could give us the market size of this product across various markets like Brazil, India, and the USA, that would be very helpful in assessing how big this product could be.

Speaker #4: And I remember in the Q4 call, it was said that the Brazil market, from a biologics point of view, will grow by 300%.

[Analyst]: I remember in the Q4 call, it was said that Brazil market, from biologics point of view, will grow by 300%. So what was our size there? With India and US launch happening this year, what kind of growth can we expect in the biologics? That is my first question. I have more, so if you could answer this.

Speaker #4: So, what was our size there? And with India and US launches happening this year, what kind of growth can you expect in the biologics?

Speaker #4: That's my first question. I have more, so if you could answer this.

Anand Chand: That is my first question. I have more, so if you could answer this.

Speaker #2: That issue. Yeah, no, absolutely. So, first piece is, I think, let's understand the overall biological business, right? Globally, biological business is something around $10 billion.

Jagresh Rana: Rishi, no, absolutely. First piece is, I think let us understand the overall biological business. Globally, biological business is something around USD 10 billion, growing in a double digit. This is the only segment if you look at in the crop input market which has been growing. Our nematicide product, biological nematicide, which is very unique and which we said is the only product in the industry which has foliar application, can also be applied with seed. It can be applied in the soil, with the seed, foliar application. It has all the flexibility for the farmers. This product is registered in Brazil, Mexico, and US. US is basically just getting launched. In Brazil, if you look at it, of the total market, roughly around USD 750 million is the nematicide market.

Speaker #2: Growing in double digits. So this is the only segment, if you look at the crop input market, which has been growing.

Speaker #2: Now, our nematocyte product, Biological Nematocyte, which is very unique and which we said is the only product in the industry that has a foliar application, can also be applied with seeds.

Speaker #2: So, it has—you know—it can be applied in the soil, with the seed, or by foliar application. So, it has all the flexibility for the farmers.

Speaker #2: And this product is registered in Brazil, Mexico, and the US. The US is basically just getting launched. In Brazil, if you look at it, of the total market, roughly around $750 million is the nematicide market.

Jagresh Rana: This product is registered in Brazil, Mexico, and US. US is basically just getting launched. In Brazil, if you look at it, of the total market, roughly around USD 750 million is the nematicide market. That is the market we are participating right now. Farmers basically who plant roughly around 5 million hectare of the crop, they tested this product last season. Farmers will start planting in roughly around a month time in Brazil. We have very positive feedback. In Mexico, we are primarily focusing on the fruit and vegetable market, which is a very high value market.

Speaker #2: So that's the market we are participating in right now. And, you know, farmers—basically, who plant roughly around five million hectares of the crop—tested this product last season.

Jagresh Rana: That is the market we are participating right now. Farmers basically who plant roughly around 5 million hectare of the crop, they tested this product last season. Farmers will start planting in roughly around a month time in Brazil. We have very positive feedback. In Mexico, we are primarily focusing on the fruit and vegetable market, which is a very high value market. Then US, as we have launched, we are looking at both the field crops like corn, soybean, as well as the fruit and vegetable market. These are three, and then we are bringing it to other market as well. The other fact maybe I just want to share is nematicide or nematode management is a relatively newer concept.

Speaker #2: Farmers will start planting in roughly around a month’s time in Brazil. We are getting very positive feedback. In Mexico, we are primarily focusing on the fruit and vegetable market, which is a very high-value market.

Speaker #2: And then, in the US, as we have launched, we are looking at both the field crops, like corn and soybean, as well as the fruit and vegetable market.

Jagresh Rana: Then US, as we have launched, we are looking at both the field crops like corn, soybean, as well as the fruit and vegetable market. These are three, and then we are bringing it to other market as well. The other fact maybe I just want to share is nematicide or nematode management is a relatively newer concept. Nematodes are present everywhere, but farmers do not realize it, and we see a significant opportunity even in India and other markets as well in the future with this.

Speaker #2: So these are three, and then we are bringing it to other markets as well. The other fact maybe I just want to share is that nematocyte or nematode management is a relatively newer concept.

Speaker #2: Nematodes are present everywhere, but farmers don't realize it. We see a significant opportunity, even in India and other markets as well in the future with this.

Jagresh Rana: Nematodes are present everywhere, but farmers do not realize it, and we see a significant opportunity even in India and other markets as well in the future with this.

Speaker #2: And only one line of caution that I would put—please appreciate that where the usage is of that, when we do it for a foliage application, we are also trying to send a new concept to the farmer of changing his habit.

Mayank Singhal: And only one line of caution that I would put, please appreciate that where the usages are there, when we are doing for a foliar application, we are also trying to send a new concept to the farmer of changing his habit.

Speaker #2: Yeah. But which is better for him? As you would appreciate, any habit change—any concept change—takes some time and investments to deliver that value.

Anand Chand: Yeah.

Jagresh Rana: Yeah.

Mayank Singhal: But which is better for him. But as you would appreciate, any habit change, any concept change takes some time and investments to deliver that value.

Speaker #4: So, is it a fair understanding that this particular product, because of the foliar application, need not be used at the time of planting the crop but can be used later when the nematode issues appear?

Anand Chand: So is it a fair understanding that this particular product, because of the foliage application, need not be used at the time of planting the crop, but can be used later when the nematicide issues appear? Is that a fair understanding? Because the competitive products actually require you to use right at the time the crop is planted.

[Analyst]: So is it a fair understanding that this particular product, because of the foliage application, need not be used at the time of planting the crop, but can be used later when the nematicide issues appear? Is that a fair understanding? Because the competitive products actually require you to use right at the time the crop is planted.

Speaker #4: Is that a fair understanding? Because the competitive products actually require you to use them right at the time the crop is planted.

Speaker #2: Competitive products are typically used either in the soil or as a seed treatment. This product can be used as a seed treatment, in soil—which we call in-furrow—as well as for foliage.

Jagresh Rana: Competitive product are typically used either in the soil or in the seed treatment. This product can be used as a seed treatment in soil, which we call it in-furrow, as well as foliar. Just think of it this way. There are farmers who may have missed the first application, they could not do it. These farmers have the ability to catch up again basically in the foliar, which you don't have with chemical. Another piece, think of the permanent crops, typically the fruit crops which are there, or long duration crops like sugarcane, cotton. In these crops, normally when you do the early application with seed or soil, it doesn't take you all the way through. Here, farmer has the option to come back again and apply, right? So it's the flexibility as well which this product is offering, which is very unique effectively.

Speaker #2: So, see, just think of it this way. There are farmers who may have missed the first application—they could not do it. These farmers have the ability to catch up again, basically in the foliage, which you don't have with chemicals.

Speaker #2: Another piece—think of the permanent crops, typically the fruit crops which are there, or long duration crops like sugarcane, cotton. In these crops, normally when you do the early application with seed or soil, it doesn't take you all the way through.

Jagresh Rana: In these crops, normally when you do the early application with seed or soil, it doesn't take you all the way through. Here, farmer has the option to come back again and apply, right? So it's the flexibility as well which this product is offering, which is very unique effectively. No one has in the industry this kind of product.

Speaker #2: Here, the farmer has the option to come back again and apply, right? So it's a flexibility as well, which this product is offering, which is very unique, effectively.

Speaker #2: No one else in the industry has this kind of product.

Jagresh Rana: No one has in the industry this kind of product.

Speaker #4: Thanks for that. My next question is on Pioxo Niliprol, and I think this was asked by an earlier participant as well. Now, we don't want to compare this with CTPR, which is another diamide.

Anand Chand: Thanks for that, sir. My next question is on pyoxasofen. I think this was asked by an earlier participant as well. We do not want to compare this with CTPR, which is another diamide. But what I wanted to understand is if you can give us some kind of efficacy data. There are two things which matter most. One is efficacy against various pests/crops, and then the days between repeat application. Because what we have seen is that, the most commonly used diamide, which is CTPR today, the efficacy has just gone down significantly and farmers are kind of using it after every week. So if you could give us anything around that, because almost there is like the data is totally absent for us to judge it in terms of what kind of molecule it is.

[Analyst]: Thanks for that, sir. My next question is on pyoxasofen. I think this was asked by an earlier participant as well. We do not want to compare this with CTPR, which is another diamide. But what I wanted to understand is if you can give us some kind of efficacy data. There are two things which matter most. One is efficacy against various pests/crops, and then the days between repeat application. Because what we have seen is that, the most commonly used diamide, which is CTPR today, the efficacy has just gone down significantly and farmers are kind of using it after every week.

Speaker #4: But what I wanted to understand is if you can give us some kind of efficacy data, like there are two things which matter most.

Speaker #4: One is efficacy against various pests or crops, and then the days between repeat application. Because what you have seen is that, you know, the most commonly used diamide, which is CTPR today, the efficacy has just gone down significantly.

Speaker #4: And farmers are kind of using it after every week. So if you could give us anything around that, because almost, the data is totally absent for us to judge it in terms of what kind of molecule it is.

[Analyst]: So if you could give us anything around that, because almost there is like the data is totally absent for us to judge it in terms of what kind of molecule it is.

Speaker #2: High level the way with seed once in the launch you will get a better sense of the product and that's what we usually that's typically when a product goes to the market you get a better sense of that.

Mayank Singhal: High level, the way we will see once in the launch, we will get a better sense of the product. That is what we usually, and that is typically when a product goes to the market to get a better sense of that. Clearly, we have gotten the product, it has a better efficacy. Again, I want to highlight this. It does not mean every diamide will be replaced by this product and this product will replace every diamide. Every product has its own opportunity. Whether it is in crops, and sometimes in crops there are multiple applications which are done on the similar chemistry. One of the key areas, it has better efficacy than some of the competing products. But it does not mean that those products will still not have a place.

Speaker #2: Clearly, we have gotten the product. It has better efficacy. And again, I want to highlight this: it doesn't mean every diamide will be replaced by this product, and this product will not replace every diamide.

Speaker #2: Every product has its own opportunity, whether it's in crops. And sometimes, in crops, there are multiple applications which are done on the similar chemistry.

Speaker #2: The advantage is that in one of the key areas, it has better efficacy than some of the competing products. But that doesn't mean that those products will not still have a place.

Mayank Singhal: One of the key areas, it has better efficacy than some of the competing products. But it does not mean that those products will still not have a place. Our approach to sustainable agriculture is to reduce this efficacy and to improve efficiency is by staying and educating the farmer in the same segment by using different products, hence enhancing resistance management. So in a nutshell, we see bio-efficacy in certain. I would not say CTPR is the only benchmark. It improves the efficacy. CTPR has its own space.

Speaker #2: And our approach to sustainable agriculture is to reduce this efficacy and to improve efficiency by staying in and educating the farmer in the same segment by using different products, hence enhancing resistance management.

Mayank Singhal: Our approach to sustainable agriculture is to reduce this efficacy and to improve efficiency is by staying and educating the farmer in the same segment by using different products, hence enhancing resistance management. So in a nutshell, we see bio-efficacy in certain. I would not say CTPR is the only benchmark. It improves the efficacy. CTPR has its own space. This product will have its own space. The other products have its own space. Is how we take the product from the efficacy in the segment of the pest, if yes, it is good. The value proposition to the farmer and a sustainable approach, and in different crops, different diamides work differently. As you would know, since you are well aware, certain diamides do not work in certain crops, and certain diamides work very well in certain crops. So that is also the other differentiator. Yes.

Speaker #2: So, in a nutshell, we see bio efficacy in certain uses. I would not say CTPR is the only benchmark. It improves the efficacy. CTPR has its own space.

Mayank Singhal: This product will have its own space. The other products have its own space. Is how we take the product from the efficacy in the segment of the pest, if yes, it is good. The value proposition to the farmer and a sustainable approach, and in different crops, different diamides work differently. As you would know, since you are well aware, certain diamides do not work in certain crops, and certain diamides work very well in certain crops. So that is also the other differentiator. Yes.

Speaker #2: This product will have its own space. The other products have their own space. It is how we take the product from the efficacy in the segment of the pest—yes, it's good.

Speaker #2: The value proposition to the PA farmer and a sustainable approach, and in different crops, different diamides work differently. As you would know, since you are well aware, certain diamides don’t work in certain crops, and certain diamides work very well in certain crops.

Speaker #2: So that's also the other differentiator. Yeah.

Speaker #4: last question is on electronics and performance chemical. Just this last question. Like I I actually been tracking a company for quite some time. I remember that in two thousand eleven was when we first made you know our electronic chemical journey started our electronic chemical journey.

Anand Chand: Last question is on electronics performance chemical, just this last question. I actually have been tracking your company for quite some time. I remember that in 2011 was when we first made our electronic chemical journey, started our electronic chemical journey. Exactly five years before that, we said that we have commercialized something in electronic chemicals. Now, over the period of last five years, we have said multiple times that multiple molecules have been commercialized. What exactly do you mean when you say commercialized? Because we haven't seen anything significant or substantial come out of that bucket.

[Analyst]: Last question is on electronics performance chemical, just this last question. I actually have been tracking your company for quite some time. I remember that in 2011 was when we first made our electronic chemical journey, started our electronic chemical journey. Exactly five years before that, we said that we have commercialized something in electronic chemicals. Now, over the period of last five years, we have said multiple times that multiple molecules have been commercialized. What exactly do you mean when you say commercialized?

Speaker #4: And it's exactly five years before that we said that, you know, we have commercialized something in electronic chemicals. Now, over the last five years, we have said multiple times that multiple molecules have been commercialized.

Speaker #4: What exactly do you mean when you say "commercialized"? Because we haven’t seen anything significant or substantial come out of that bucket.

[Analyst]: Because we haven't seen anything significant or substantial come out of that bucket.

Mayank Singhal: That's a fact. The electronic chemicals is not substantial. It takes a longer gestation. Yes, but we had entered that space. You understanding it is too nascent. That time it was not a big thrust. The whole trajectory of that industry is changing now. Let me be clear. We have put a commercial plant, which has got into operations, and commercial supplies in that area has started with the new technology.

Speaker #2: That's a fact. The electronic chemicals segment is not substantial. It takes longer gestation. Yes. But we have entered that space. Your understanding is that it is too nascent.

Speaker #2: At that time, it was not a big thrust. The whole trajectory of that industry is changing now. Okay, but let me be clear. We have put a commercial block, which has now gone into operation.

Speaker #2: And commercial supplies in that area have started with the new technology.

Speaker #4: Oh, that's great to hear. So, commercial supplies would mean significant revenue, is what I would assume for certain molecules.

Anand Chand: Oh, that's great to hear. So commercial supplies would mean significant in terms of revenue, is what I would assume, for certain molecules.

[Analyst]: Oh, that's great to hear. So commercial supplies would mean significant in terms of revenue, is what I would assume, for certain molecules.

Speaker #2: Yes, these are things, to be honest. Because, you see, you're trying to get into a billion-dollar play, but it's significant from our perspective to have entered that space.

Mayank Singhal: These are things, honestly. Because you see you're trying to get in a billion-dollar play, but significant from our perspective to have entered that space. In the meantime, to ensure the requirement to meet the next generation of technologies, we are in the process, as I've said earlier, investing in a very high-tech manufacturing asset to support the business development to look at a differentiated approach. Because the whole sector is far more dynamic than any other sectors, and the evolution, the requirement of technology and products is constantly changing. So that's how we try to address rather than go the lower end of the value chain at a commoditized approach. So that's the game that we are playing there. As the PI formula in other businesses.

Speaker #2: And in the meantime, to ensure the requirements to meet the next generation of technologies, we are in the process, as I’ve said earlier, of investing in a very high-tech manufacturing asset to support the business development.

Speaker #2: To look at a differentiated approach, because the whole sector is far more dynamic than any other sectors. And the evolution, the requirements of technology and products, is constantly changing.

Speaker #2: So that's how we try to address, rather than go to the lower end of the value chain and come out with a tires approach. So that's the game that we are playing there.

Mayank Singhal: So that's how we try to address rather than go the lower end of the value chain at a commoditized approach. So that's the game that we are playing there. As the PI formula in other businesses.

Speaker #2: As is the PI formula in other businesses.

Speaker #4: Great, sir. Thank you, and all the best. Thank you. Ladies and gentlemen, this will be our last question. It's from the line of Sanjay Kumar with I.P.M.S.

Anand Chand: Great, sir. Thank you and all the best.

[Analyst]: Great, sir. Thank you and all the best.

Operator 3: Thank you. Ladies and gentlemen, this will be our last question. It is on the line of Sanjay Kumar with ithought PMS. Please go ahead.

Operator: Thank you. Ladies and gentlemen, this will be our last question. It is on the line of Sanjay Kumar with ithought PMS. Please go ahead.

Speaker #4: Please go ahead.

Speaker #3: So, just a couple of follow-ups. First, on the Brazil nematicide market, you said $750 million is the market size. Given our product is performing at par...

Sanjay Kumar: Just a couple of follow-ups. First, on the Brazil nematicide market, you said INR 750 million is the market size. Given our product is performing at par, what kind of market share can we aim for in Brazil?

Speaker #3: What kind of market share can you aim for in Brazil?

Mayank Singhal: We are developing. What I can say, looking at a smart competitive intelligence, a double-digit market share is not a challenge with that product. That is where I would park that answer. You can do your own anticipation on that base.

Speaker #2: We're developing, and what I can say is that we want to keep up with smart competitive intelligence. Double-digit market share is not a challenge for that product.

Speaker #2: And that's where I would park that answer. Yeah. So you can do your own anticipation on that base.

Speaker #3: And how long would it take to reach double-digit market share?

Sanjay Kumar: How long would it take, the double-digit market share?

Mayank Singhal: Industry, sure, it takes 5 to 10 years to develop a product, but we are trying to accelerate it with that technology. The market will also grow, I believe. As Jagdish mentioned earlier, the potential is there.

Speaker #2: In the industry, I am sure it takes five to ten years to develop a product. But we are trying to accelerate it with that technology. And the market would also grow, I believe.

Speaker #2: So, as Jagesh mentioned earlier, the potential is there.

Sanjay Kumar: Got it. Okay. Second, I believe we have registered for a product called dicloromezotiaz for diamondback moth. When can we launch this product, and will we also do CSM 2 for this innovator, which has generally been our model? Can this be as big as our current large molecule? Diamondback moth, I believe, is one of the worst things affecting the farmers.

Speaker #3: Got it. Okay. And second, I believe we have registered for a product called Dichloro Mesotias for diamond back moth. When can we launch this product, and will we also do CSM2 for this innovator, which has generally been our model?

Speaker #3: And can this be as big as our current large molecule? Because diamondback moth, I believe, is one of the worst things affecting the farmers.

Speaker #2: We are getting into that product. That's a new-generation product. That's part of the launch that you mentioned—the three to four products.

Mayank Singhal: We are getting into that product. That is a new generation product. That was a part of the launch that you mentioned, the three to four products. That is the product which is under launch this coming season.

Speaker #2: That's the product which is under launch this coming season.

Sanjay Kumar: What could be the revenue potential of this product, sir?

Speaker #4: what could be

Speaker #3: What is the revenue potential of this product, sir?

Speaker #2: The first commercial launch. But I think, again, for the Indian context, I do believe we are a three-digit product in times to come.

Mayank Singhal: The first commercial launch, but I think again, it will for the Indian context, I do believe it will be a three-digit product in times to come. It takes five, seven years in that segment to build a product, and you would appreciate.

Speaker #2: It takes five to seven years in that segment to build a product, and we would appreciate it.

Speaker #3: Got it. And for this last question, we have signed up as an exclusive partner for integrated drug discovery with the biotech. Can you talk more about this—what will be the services we'll be providing, and can we sign such deals with other biotechs as well?

Sanjay Kumar: Got it. This last question. We have signed up as an exclusive partner for integrated drug discovery with a biotech. Can you talk more about this? What will be the services we will be providing, and can we sign such deals with more other biotechs as well?

Mayank Singhal: Yes, we are. That is one of the key other offerings within the value chain, the CRDMO. It is about IDD, independent drug discovery programs, which is supporting through our chemistry process capabilities, biological evaluation capabilities. We have right now been able to lock in with one partner. We are working with more of the partners. So that becomes a knowledge capability, which more translates into product capability and which leads into the CRO from a CRO to a CDMO play. That is really the capability that we put at the front end, which ensures the pipe of attracting the customer towards the manufacturing, which is a revenue driver. So we believe we are very happy with what we have been able to build and show and demonstrate, creating attraction. We are right now having two to three different opportunities which we are evaluating.

Speaker #2: Yes, we are, yes we are. That's one of the key other offerings within the value chain, the CRDMO. It's about IVD, independent drug discovery program, which is supported through our chemistry process capabilities and biological evaluation capabilities.

Speaker #2: We have right now been able to lock in with one partner. We are working with more other partners. So that becomes a knowledge capability, which tomorrow translates into product capability and which leads into the CRO—from a C-CRO to a CDMO play.

Speaker #2: And that's getting the capability that we put at the front end, which ensures the pipeline of attracting the customer towards the manufacturing, which is saving the driver.

Mayank Singhal: That is really the capability that we put at the front end, which ensures the pipe of attracting the customer towards the manufacturing, which is a revenue driver. So we believe we are very happy with what we have been able to build and show and demonstrate, creating attraction. We are right now having two to three different opportunities which we are evaluating. And over time, we should be able to lock this in, which gives us confidence for the longer term.

Speaker #2: So we believe we are very happy with what we've been able to build and show and demonstrate, creating attraction. And we are right now having two to three different opportunities which we are evaluating.

Speaker #2: And over time, we should be able to lock this in, which gives us confidence for the longer term.

Mayank Singhal: And over time, we should be able to lock this in, which gives us confidence for the longer term.

Speaker #3: Oh yes, sir. Sorry to interrupt. The current participant has been disconnected. Ladies and gentlemen, that was the last question for today. I will now hand the conference over to the management for closing comments.

Operator 3: Yes, sir. Sorry to interrupt. The current participant has been disconnected. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.

Operator: Yes, sir. Sorry to interrupt. The current participant has been disconnected. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.

Speaker #2: Thank you very much for joining the call today. I'm happy to say that PI is now moving to the next dimension, or the next orbit, in its journey.

Mayank Singhal: Thank you very much for joining the call today. I am happy to say that PI is in its stage of moving to the next dimension, next orbit, with sustainable solutions, biological at the top of the agenda. Initial shoots being shown in the domestic markets, the global markets showing positive trajectory, and the chemical industry expansion as we grow to the dynamics of the chemical industry. Look forward to your support, and all the very best. Thank you.

Speaker #2: The sustainable solutions, biological, are at the top of the agenda. Initial shoots are being shown in the domestic markets. The global markets are showing a positive trajectory. And the chemical and the chemical industry expansions as we grow to the dynamics of the agrochemical industry.

Speaker #2: I look forward to your support, and all the very best. Thank you.

Operator 3: Thank you. On behalf of PI Industries, I conclude this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of PI Industries, I conclude this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #3: Thank you. On behalf of PI Industries that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.

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Q1 2027 PI Industries Ltd Earnings Call

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