India’s agrochemical sector is a key part of the country’s agriculture, contributing significantly to crop protection and enhanced productivity. The sector includes pesticides, insecticides, fungicides, herbicides, and other products aimed at improving crop yield and quality. With the growing demand for food security, increasing adoption of modern farming techniques, and a shift towards sustainable agriculture, the agrochemical industry is expected to see substantial growth.
The market is projected to expand at a CAGR of 6-7% over the next few years. Key players in the sector include UPL Ltd, BASF India, Rallis India, PI Industries, Best AgroLife Ltd., and Bayer CropScience. With advancements in bio-based solutions and precision farming, the sector holds significant future potential, both domestically and internationally.
Government Subsidy
In a key move to support farmers, the Union Cabinet has approved a one-time package of up to Rs 3,850 crore to subsidize Di-Ammonium Phosphate (DAP) Fertilizers. This initiative ensures that farmers can continue to purchase a 50-kg bag of DAP for Rs 1,350, despite challenges in global supply chains due to geopolitical tensions. The subsidy aims to maintain affordable access to fertilizers, helping boost agricultural productivity and sustain India’s agrarian economy.
Additionally, the Cabinet has extended two major crop insurance schemes—the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS)—for another year, with an increased budget of Rs 69,515.71 crore. This represents a rise from the previous Rs 66,550 crore allocation. An additional Rs 824.77 crore will be injected into technological advancements for better implementation, reinforcing the government’s commitment to securing farmers’ financial stability and supporting agricultural growth.
Share Price
The shares of P I Industries Limited are currently trading at Rs. 3,647 down by 0.39% from its previous close of Rs. 3,659.85 as of January 10, 2025. The stock hit an intraday low of Rs. 3,601.
Recent Update
Axis Mutual Fund (DII) has reduced its stake in PI Industries by selling 69,120 shares through an open market transaction. As a result, the mutual fund’s holding in the company has decreased to 2.97%, down from the previous 3.02%.
Before the sale, Axis Mutual Fund held 45,77,978 shares of PI Industries, which has now been reduced to 45,08,858 shares. The stake sale marks a slight reduction in the mutual fund’s overall position in the company. The sale of these shares was conducted in the open market, and it remains to be seen how this move will impact the stock’s performance or investor sentiment regarding PI Industries.
Financial Outlook
PI Industries Ltd. has shown a positive financial performance for September 2024 compared to September 2023. Sales increased from ₹2,117 crore in September 2023 to ₹2,221 crore in September 2024, reflecting a growth of 4.9%. This rise in revenue is accompanied by a healthy improvement in EBITDA, which grew from ₹551 crore to ₹628 crore, an increase of 14%.
The company’s operating profit margin (OPM) also saw a favorable rise, moving from 26% in September 2023 to 28% in September 2024, a growth of 2 percentage points or 7.7%. Additionally, net profit increased from ₹480 crore to ₹508 crore, a growth of 5.8%. These results highlight the company’s strong operational efficiency and profitability, demonstrating its ability to manage costs while growing its top line.
About the Company
PI Industries Ltd. is a leading Indian agri-science company specializing in crop protection, plant nutrients, and industrial chemicals. The company has a strong presence in the agriculture sector, offering a wide range of products including herbicides, fungicides, insecticides, and specialty chemicals.
PI Industries is known for its innovation, with a focus on research and development, and has a robust portfolio of patented products. It serves both domestic and international markets, partnering with global agricultural companies. The company is also committed to sustainable farming practices, supporting the growth of India’s agricultural sector and improving crop productivity.
Written By: Dipangshu Kundu
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