PI Industries Ltd (NSE: PIIND) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Mayank Singhal — Vice Chairman and Managing Director
Atul Kumar Gupta — Chief Executive Officer, CSM – AgChem
Ramesh Subramanian — Global CEO
Analysts:
Unidentified Participant
Siddarth — Analyst
Sanjay Agarwal — Analyst
Aditya Jhawar — Analyst
Abhijit Akella — Analyst
Saurabh Jain — Analyst
Noshit Chaudhary — Analyst
S. Ramesh — Analyst
Rohit Nagaraj — Analyst
Sumant Kumar — Analyst
Navid Virani — Analyst
Bhavya Gandhi — Analyst
Sahil Chershad — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to PI Industries Limited Q1FY26 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 this conference call, please signal an operator by pressing Star then zero on Touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Siddharth from CTR India. Thank you. And over to you.
Siddarth — Analyst
Thank you, Avirath. Good afternoon everyone and thank you for joining us on PI Industries quarter one FY26 earnings conference call. Today we are joined by senior members of the management team including Mr. Mayank Singhal, Executive Vice Chairman and Managing Director Joint Managing Director Mr. Sanjay Agarwal, Group Chief Financial Officer Dr. Atul Gupta, CEO of CSM Akin. Mr. Prashant Hegre, CEO at Ken Brands. Dr. Ramesh Subramaniam, Global CEO, PI Health Sciences. We will begin the call with key perspectives from Mr. Singhal following which we will have Mr. Agarwal sharing his views on the company’s financial performance.
Thereafter the forum shall be opened for a question and answer session. Before we begin, I would like to underline that certain statements made on today’s call will be forward looking in nature. A disclaimer to this effect has been included in the investor presentation that has been shared with you earlier and is also available on the stock exchange website. I would now like to request Mr. Singhal to share his perspectives with you. Thank you. And over to you.
Mayank Singhal — Vice Chairman and Managing Director
Yes, thank you and thank you and good afternoon to everyone. Just also wanted to add that we also have on a call for the first time Mr. Jagrash Rana, the global CEO of Biologicals who’s also joining the call. So now let me begin by sharing my views of the business environment and the role of PI as a leader, as a technology solution provider and a global partner in the at camp space. The global at cam industry is navigating through a dynamic market environment and landscape. Having witnessed an overall decline over the last two years. Low commodity prices, farm income and high interest rates and extreme weather events, uncertainty related to tariffs over the last six months have impacted the market sentiments.
On the positive side, there’s a gradual destocking of inventories in most of the markets and a particular trend on global innovators pushing the China plus one strategy. On the domestic side, we have seen large favorable monsoons, positive sowing trends in major crops. The abrupt regulatory challenges on biological fertilizer shortfalls has impacted the growth momentum of the current season beyond the near term development of advanced crop care solutions remains a global priority given the underlining requirements for higher and more reliable crop yields and the shrinking arable land weather variabilities in growing population. Innovators adopting to new technological initiatives including AI based platform from research to farms, the initiatives are aimed at improving productivity, efficiency, farm output and meeting regulatory compliances.
Currently the demand of biologicals for integrated crop health management has increased given the challenge of climate change in the current landscape. The global companies continue to elevate their strategic partnerships across the value chain in pursuit of cost optimization and build resilient business models amid heightened regulatory environmental challenges. I now move on to a business highlight for Q1FY26. Our performance is broadly in line with the edge to weight. Plan. For the AD account export side we. Have seen a decline that is in line with the customer delivery schedule to balance the inventory levels. As explained before, we have built in transitional softness on the financial year 26 plan. However, it is important to highlight that the growth of the new products of commercialized for the last three years have registered a decent 46% growth year on year. We are expecting to resume the acceleration of supplies in H2. We will caramers like six to seven. New products or molecules in the remaining quarter. Our electronic and specialty chemical area is also gaining traction and scale now. On the domestic side we have seen a growth of 6% year on year for Q1 26 which could have been much higher in temporary regulatory disruptions were not there in the biological space given PI’s play in that arena. Given advanced product mix and crop solution based approach, the momentum has sustained and we’ve introduced two new brands in Q1 scheduling an introduction of three new products in the year. Our development pipelines compromise with 20 plus new products and they’re in various phases of development and regulatory registration now coming to Pharma.
During the quarter our pharma business has showed 186% year on year growth in revenue. We are seeing good traction in the new business inquiries with aggressive investments in business development. Our efforts to establish an integrated CRDO platform which is delivering world class solutions by leveraging a combined combination of high quality assets, world class processes, solution renting back with knowledge and business development strategies led by strong leadership are continuing to take shape and show some early blue. We have carried our planned upgrades and additions to the exits across various locations to support the path of strategic growth.
With the acquisition now coming to the biological space with the acquisition of PI Healthcare, PI has taken A significant step in scaling a biological business globally and bringing innovative sustainable solutions to the farmers across proprietary technologies including Pretec and Harpen which help in withstanding disease and environmental steps leading to high yields and better financial returns to the global grower. We are intensifying our further R and D efforts back on this platform to integrate solutions with a focus for the markets of us, Brazil, Mexico and India and partnering across with others as one of the key strategic milestones which is now coming.
I’m pleased to share we have filed the first registration of Indian innovation to be discovered out of India. Bioxynilipril, a significant breakthrough of the innovation journey taken away by over a decade, is now showing its early shoots. We are happy to further say there are the products in the pipeline at different stages of development and research. We continue to tap our growth opportunities in the various arenas of Act Science, Health sciences and specialty chemicals marking our transition from an agri science company to a life science company. Each of these segments and growth engines have significant potential to expand and strengthen our position at a global level.
We are continuing our investments in these growth engines to ensure we pave and lay the foundations for the next level of growth in the coming years. Let me take you in terms of our outlook for the global industry still passing through a tough time and an ongoing US Tariff drama is unfolding every day. We remain cautious and optimistic about reimagining the growth of momentum in H2. I will highlight certain initiatives that we are working to further strengthen what we see our outlook. CSM Exports sees introduction of new technologies to be able to compete at a global platform.
We are investing in technology based augmentation in our distribution business in order to drive customer centricity and efficiency. Continue to invest in newer acquired businesses to scale up drive to bring about a more rounded growth implementing business process reengineering like SAP Hana Global Supply chain integration strategic synergies. Further, not only that, based on our growth expectations, we shall be continuing to invest about 7 to 800 crores in the year. With this, I would now like to hand over the discussion to our group CFO Sanjay and thank you very much. And Sanjay over to you.
Sanjay Agarwal — Analyst
Thank you Mr. Single. Good afternoon everyone. I’ll summarize today’s the company’s financial highlights for the quarter ended June 30, 2025. Please note that all the comparisons are on year on year basis and refer to the consolidated performance of the company. So as you know, Q1 unfolded against the backdrop of macroeconomic headwinds and geopolitical uncertainties. Which continue to influence the market sentiment and we anticipated these headwinds in our annual Plan which is H2 weighted and therefore the results are broadly in line with the business plan. To share the performance highlights, during quarter one FY26 we reported revenue of 19,005 million, a decline of 8% over the same period of last year and a sequential growth of 7% on a three year CAGR basis.
The growth in Q1 is 7% as we had registered a growth of 8% in quarter one FY25 and 24% in quarter one FY24 making it a high base. Our domestic business grew by 6% backed by Curry season and we remain buoyant based on favorable monsoon forecast and strong product portfolio which we have. However, there was a decline in the biological segment due to regulatory changes. Our pharma platform rebounded registering revenue growth of 187% over previous year driven by deepening relationship with biotech and big pharma innovators. A development spend into creating fully integrated pharma CRDMO platform has helped to create an accelerated pathway for strong future growth.
Q1 FY26 result also includes the financials of our global biologicals business which was acquired in August 24th. The business has been performing in line with the business plan with many innovative products in the pipeline due to the favorable product mix and cost optimization projects. Our gross margin for the quarter has has expanded to 57.4% and increased by 5.7% and our EBITDA margin remained resilient at 27.5% for the quarter. We expect the ETR to be in the range of 22 to 23% for the next two to three years. Further, the great working capital in terms of days of sales has increased to 91 days from 73 days in March 25, while better inventory management has kept the inventory days almost at the same level of last year.
Our healthy performance leading to stable cash flows provides us the flexibility to continue with our CAPEX plan allocating capital towards our future growth engines which we have done in PIHS or Pharma business. Phc, our global Biological franchise and Discovery. R and D. Our balance sheet further strengthened during the quarter, net worth increased to1.6003 million and a healthy net cash balance of 41,554 million. Given our leadership and strong partnership with global EKTM companies, our innovation pipeline, we expect accelerated H2 to drive a single digit revenue growth for FY26 with a sustained EBITDA margin. With this I’ll conclude my Opening remarks. I will now request the moderator to open the forum for Q and A. Thank you.
Questions and Answers:
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Aditya Jawar from Investec. Please go ahead.
Aditya Jhawar
Yeah, hi. Thanks for the opportunity. Now it would be great if you can give us some sense on you know, the applicability of tariff on our key product in the US as well as other products. How do we, you know, think about it and what is our interaction with customer suggesting? Is it completely exempted all our product or the customer is willing to absorb some sense on that? That’s the first question.
Mayank Singhal
Right now the given scenario there is no clarity on the implication of tariff but not at the present is not applicable. And as you know the tariff scenario is quite a confused one. So for the present we don’t see any challenges.
Aditya Jhawar
Okay. Okay. My second, you know question is any update on our registration of one of the key products in Brazil, Paraso Pyro.
Mayank Singhal
So let me answer number one, we are not response. That’s comey product with us the contract manufacturer to be very fair but already it’s been registered in Brazil from what my understanding is from public.
Aditya Jhawar
Yeah, but our supplies, you know to a Brazilian market.
Mayank Singhal
No, we supply, supply. We supply to a customer. Google may internally supply to the.
Aditya Jhawar
Fair enough, fair enough. Next question that when can we expect normalization of biological sales in India?
Mayank Singhal
Yeah, that’s an interesting question. As you know this is a fact which is still in the hand of the government. We are trying to. We would want it to happen as of yesterday but obviously it’s going to take some time and I’m sure we probably should be able to cross this corner over the next couple of months.
Aditya Jhawar
Next. Okay, the final question, you know, to give a fill up to our domestic business. Are we also evaluating some inorganic opportunities in the Indian market?
Mayank Singhal
So very clearly we as you know in my treatment we are looking at many inorganic opportunities and the various parts of the business segment and definitely why not also in the domestic segment.
Aditya Jhawar
Okay, that’s it. I’ll fall back in queue. Thank you so much Mayank.
Mayank Singhal
Thank you.
operator
Thank you. The next question is from the line of Abhijit Akela from Kotak Institutional Equities. Please go ahead.
Abhijit Akella
Thank you so much. So on the gross margins, they’ve come in very strong at about 57%. I know you mentioned the product mix as well as cost optimization projects. Last quarter, I believe we had guided to gross margins in the range of only 50 to 52%. So now in light of this performance for the first quarter, would we like to update that guidance range? Should we expect to stay closer to these levels?
Mayank Singhal
We would stick to our guidelines. But yet, as lightly mentioned, it is based on the product mix and some of the efficiencies driven by the operating team. And these product weeks vary quarter to quarter. So, you know, the margin profile will also vary from one quarter to the other.
Abhijit Akella
Okay. Okay. So 50 to 52% gross margins and 25, 27% EBITDA margins is. That’s still the range to work with. Okay, thank you. And then the other thing was just a couple of quick bookkeeping questions, if I may. Just on the order book number, if it’s possible to share that at the end of this quarter. And also the revenues from plant healthcare for the quarter, please. Thank you so much.
Mayank Singhal
So I think the revenue at the order book is about 1.2 odd billion dollars. And in regards to the plant healthcare, the revenue is about.
Sanjay Agarwal
So on a yearly basis, it’s around 10 to 12 million dollars.
Abhijit Akella
Possible to share it for the quarter.
Sanjay Agarwal
Yeah, so it will be around 3, 3 to 4 million dollars in this particular quarter.
Abhijit Akella
Okay. And is this included within the, within the CSM business?
Mayank Singhal
No, no, that’s a separate vertical.
Sanjay Agarwal
So it gets plugged under the exports business, what we have.
Abhijit Akella
Okay. All right, thank you so much and I’ll come back in queue for any more.
operator
Thank you. The next question is from the line of Sourabh Jain from hsbc. Please go ahead.
Saurabh Jain
Yeah, thank you for the opportunity. My question is on the domestic business. Please give us more details on why the paid receivables kind of increased in the quarter. Because is it more to do with the push that you did in the market and possibility risk of.
Mayank Singhal
Okay, if I may get your question right, maybe you can answer the question. Is that why has there been an.
Saurabh Jain
Increase in the paid receivables in the quarter?
Mayank Singhal
Paid receivables? Yeah.
Sanjay Agarwal
Yeah. So one, obviously, obviously there are inventories in the market for the industry. And second, as Mike earlier explained, so fertilizer shortages that resulted in lot of money being basically diverted to the. To secure the fertilizer. Hence we have seen a little bit of slowness in terms of agrochemical, especially in terms of collection is concerned. So that is what is reflecting on the receivables.
Saurabh Jain
Okay. And would you also assume a higher risk of safe returns coming in through 2Q?
Mayank Singhal
No. So as of now our quality of sale is looking good. We don’t see any higher returns compared to whatever which we have been tracking from last one year. It is in line. So we don’t see any major deviations in terms of our returns.
Sanjay Agarwal
And also just to add to Prashant, why we Prashant spoke about the agri, the domestic business, the numbers, when you look at it, Even from the March 25th and what we’re seeing now in June 25, they are broadly in line. So there’s been no major increase in the receivables. And as you ask, yes, the receivables, what we have there is no concern at all for us in terms of recoverability and they are very much in line with the current business environment.
Mayank Singhal
I think the point also to emphasize is the extreme receivables from the export segment which will be in line. Okay.
Saurabh Jain
The question I had was on the pharma business, just from understanding, we reported in the current quarter that the gross margins for pharma business in the that is about 52%. But to look at the same presentation of last year, it was reported at 42%. Where am I missing?
Sanjay Agarwal
No, so you’re right. The numbers of last year were 42. There was a classification thing which was done and therefore the numbers broadly are the same at 52% for the last year. This year also.
Saurabh Jain
Okay, so. So now like for like 52 versus 55, that’s okay. And do you also want to make a comment on your guidance for your pharma business? Because previous quarter you mentioned, you know, 75% revenue growth with improved margins. How would you see it now after this 1Q performance what I do a.
Mayank Singhal
Question on the revenue growth or the margins?
Saurabh Jain
No. So in the previous quarter you mentioned that you are expecting to achieve 75% revenue growth in FY26 in your pharma business with improved margin.
Mayank Singhal
Yeah. So we are broadly in line with that guideline.
Saurabh Jain
Okay, sure. Thank you. I will get back in the queue.
operator
Thank you. The next question is from the line of Noshit Chaudhary from Aditya Birla Mutual Fund. Please go ahead.
Noshit Chaudhary
Yeah. Hi. Thank you for taking my question. Two, three clarification. First on the biologics regulatory issue registration requirement post, let’s assume in next 1, 2 quarters if things get settled, how the industry shape would look like versus what it is today. Can it consolidate? Can it benefit to players like you? How you see post issue gets resolved?
Mayank Singhal
No, sorry, I didn’t get the question. I mean are you question. Are you asking that if the issues get resolved, would the industry get consolidated?
Noshit Chaudhary
Yes.
Mayank Singhal
Well, that would be very difficult to say because I think, I don’t think I would be able to get that answer to refer to what the industry does. But given the fact that the temporary shutdown down due to certain changes, in my view that will only. It will probably get people to go back to business. That’s really the issue. Consolidation is not the key issue and it is, it is also progressing very positively in the court in last couple of hearings. And I think industry expects that this issue will get resolved in next maybe a month or so.
You would expect again, as you would have all seen in the past, biological is a key agenda of the government to create balanced, equal environment for agriculture and also one of Prime Minister’s most critical driving factors. And which also gave the company the spirit to say we should invest in build biologicals. So I’m pretty sure this will be a top priority to resolve at every level.
Noshit Chaudhary
And what is the percentage contribution currently from this piece of business? And is it completely zero for now? For the ongoing quarter?
Mayank Singhal
Yes, because if the sales are stopped, it stops. It will be zero. And Approximately we have 20 plus percent revenue coming from the segment.
Noshit Chaudhary
20% of the domestic revenue, sure. Second, what is the status of our 2 MTP which is in working progress and by when this should be operational and the ramp up expectation?
Mayank Singhal
So one grant would start by the first, the last quarter of this year and the other should probably get into the first or the second quarter of.
Noshit Chaudhary
Next year and ramp up plan.
Mayank Singhal
Ramp up is a three, two, three, four year process.
Noshit Chaudhary
Okay. And last on the U.S. paris in your commentary you mentioned it is creating uncertainty plus an opportunity as well. So on opportunity side, what if you can elaborate what did you.
Mayank Singhal
I just said uncertainty because opportunity would be if it settles.
Noshit Chaudhary
Yeah. All right, sir, thank you so much. All the best.
operator
Thank you. The next question is from the line of S. Ramesh from Nirmal Bank Equities. Please go ahead.
S. Ramesh
Good afternoon and thank you very much. So if you look at your biological segment globally, where would the margins we want to scale up to a certain critical mass. Would it be somewhere close to the CSM margins or slightly higher or lower? Can you give us some sense of that? And what is the kind of size we can expect say in three to four years time?
Mayank Singhal
So let me put it this way, biologicals do have a much better margin than the chemical sector. And clearly. But also let me also make it very clear, biological is a long journey. It means investments in developing the products to share the benefit in the mindset of the farmer. So it is a balancing equation. And clearly, yes, in four, five years, I believe this should be giving us better margins than the other business of the company. Therefore it’s called futuristic in our mind.
S. Ramesh
Okay, so in terms of the new molecule you launched Pierce and in April, is it possible to give us some sense in terms of the different crops and what are the kind of target market size you can expect, say for the next three to four years? And what is the supply chain, you know, plan in terms of raw material intermediate procurement? How is that going to.
Mayank Singhal
Well, I think let’s focus on the front end of the market. Typically where we say this is the best segment is epidural pests. And it has a pretty decent sized opportunity as a pest in multiple crops. Specifically the row crops is where the area of focus would be. And we are at different stages of development and evaluation at the moment to look at the segment. Prashant, do you want to add something? Yeah. So it’s effectively all important row crops as I mentioned, sugarcane, rice, pulses and few vegetable crops also. That includes tomato.
S. Ramesh
And is it possible to give us the cost of development and is there any further development expenditure required for scaling this up?
Mayank Singhal
That would not be possible. Thank you.
S. Ramesh
One last thought on Jeevagro vertical. If you see the last two years, actually the revenues have declined. So how much is the Jivagro revenue in this quarter and how do you expect that particular to perform in your domestic portfolio this year and next year?
Mayank Singhal
So Jeevagro is contributing again roughly around anywhere between 17 to 20% in terms of our domestic revenue. And so we have completely changed our portfolio. In JV Jeevago. Earlier it was mainly a generic process. Now we have more specialty products which are suited for horticulture crops and it is shaping as per our expectations. So this is basically we are treating this as a specialty division and we continue to do so.
S. Ramesh
Okay, so one last thought on the pharma segment, in terms of the overheads which you have reported, 839 million. And there is an inter segment adjustment. So in terms of the ramp up of this business, where do you expect the overhead to settle on annualized run rate and what is the inter segmental measurement you are shown in the segment results in the BSE filing?
Mayank Singhal
Sorry, did you get the question?
Sanjay Agarwal
Yeah, so broadly the pharma overhead, what you’ve seen is in line with the growth plans what we have on a run rate basis. Yes. You can take this as a base though it has higher development spends currently at this point of time. But on a, on a, on a 12 to 18 months period. Yes, we would look at a breakeven EBITDA situation in this business.
S. Ramesh
And what is the intersegment adjustment which you have shown because the losses are higher if you look at the BSE filing compared to what you’ve shown in the presentation. So what are the intersection adjustments in the segment results?
Sanjay Agarwal
No, that is only between the corporate expenses which get allocated between the two lines of business which is agrochemical and pharma.
S. Ramesh
Okay, so those are the business laws. Should we go by what is reported in the BAC filing? Is that the loss you are interested?
Sanjay Agarwal
Yes, that is right.
S. Ramesh
Okay, fair enough. Thank you. I’ll join this.
operator
Thank you. The next question is from the line of Rohit Nagraj from BNK Securities. Please go ahead.
Rohit Nagaraj
Yeah, thanks for the opportunity. Also first question is in terms of our guidance. So given that first quarter has been relatively muted and if we were to get to maybe middle single digit growth for FY26, we’ll have to grow by about 9, 10% for the rest of the year. What gives us confidence given that we have also just spelled out in terms of headwinds in domestic channel inventory plus the biological issues. So is it backed by certain firm orders on the CSM side? What is our thought process on this? Thank you.
Mayank Singhal
So very clearly as we see there is a guidance well given of the numbers that we have. Obviously it has been backed up by certain understanding with the customers on some of our, on the CSM side domestic business, we were looking for a more aggressive plan but we would see in the biological shape of fact we should be able to still somehow get there. If it doesn’t, then yes, it could put a few things down to be fair. And the other segments that we’ve invested in we are seeing as for plan running right now. So I think we would still maintain that guideline and but as I also mentioned in my speech earlier that there are headwinds and tailwinds in this whole dynamic world whether it is tariffs or whether it is the hydroclimatical situation.
And hopefully we believe that at least talking on the other hand was the positive side that we said has happened so which could drive the balance to happen. So we still remain conservatively positive to maintain our guidelines. If I was to put it very straight.
Rohit Nagaraj
Thank you sir. Second question on the pyoxonip role. So in terms of commercialization, what are the timelines that we are looking at given that it’s finding good results in phase three trials and in terms of the marketing on a global scale, what are our thoughts currently? How are we going to go ahead with it? Thank you.
Mayank Singhal
So as you said in our continuing business model approach is partnering for innovation. If you look at PI started the business of bringing innovative products as a pioneer in India. We created the next business play of pioneering or bringing in contract manufacturing for patented products and commercializing the global scale to support discovery partners. Now we are getting into the phase of creating new NCAs and we will be looking for partnering across the global phase. We have talks, advanced talks in certain cases, in certain geographies, we are looking to talk with certain distribution partners at a global level to see how we could take it to the rest of the world given the India context.
Obviously we will leverage our near home capabilities being able to put innovation out into the market. So that’s really the approach we’re taking at a higher level.
Rohit Nagaraj
And in terms of commercialization timeline, you.
Mayank Singhal
See that right now as you mentioned that we filed for regulatory filing for now for India, we’ll eventually look at a certain timeline for the other geographies with our partners in time. So I think we would see this product come to life maybe in a two and a half year scenario.
Rohit Nagaraj
Thank you so much sir and all the best.
operator
Thank you. The next question is from the line of Sumant Kumar from Motilal Oswal. Please go ahead.
Sumant Kumar
Yes sir. So in CSM we are, we are going to launch 8 to 10% in this year. In FY26 and earlier we have seen the momentum was 50% of this. So how are we going to plan for CSM and how is the growth momentum in the coming FY27 28 considering the product launch is going to accelerate?
Mayank Singhal
Well as you know the product launch is going to accelerate. That gives us a little confident. The long term story looks good but the short term, as you know the star of a product is minuscule. But this they scale up and typically in the ad world the product continues to scale up for 10 to 15 years scenario. And on the other hand other segments which you put here which continue to contain the products are in the speciality of high end technology, chemistry using specialized applications like electronics and others which are also showing some good shoots.
Given the unique PI technological capability for high control quality manufacturing followed with chemistry and process Controls. So that’s the other opportunity that’s significantly unique to PI.
Sumant Kumar
And what is the capex and tax rate guidance for FY26 will be around.
Sanjay Agarwal
700 to 800 crores in this financial year and tax rate will be around 22 to 23%.
Sumant Kumar
Okay. Okay, thank you.
operator
Thank you. The next question is from the line of Navit Virani from Bastion Research. Please go ahead.
Navid Virani
Hello. Am I audible? Yes. Thank you for the opportunity. So first one was on the pharma business. So we mentioned in our presentation that we are in the process of building strong relationships with, you know, biotech and big pharma players. So this is a two part question. Can you share some progress for us to understand better where are we on this journey? That’s one. And secondly is our strong, you know, experience and you know, history helping in csm, helping us to forge relations faster in the pharma division.
Mayank Singhal
Sorry, I didn’t get the second part of the question.
Navid Virani
The second part was sir, we already have a very strong name in agri csm. Right. So is that helping us build the pharma business slightly faster than that not being the case?
Mayank Singhal
Well, obviously that’s a credible leverage. But in terms of what is being done, in terms of developing the business at a high level. Ramesh, maybe you can come in and explain.
Sanjay Agarwal
Yeah, sure. So I’ll take it up. Thanks Mayank. So on the first piece, I think we stated sometime last year that our goal is to bring in three to four large partners, pharma clients. We’re well on our journey to get there. We’ve already onboarded two large pharma clients and the trends are that by the end of the year we’ll have two more. So I’m hoping to get to that three to four large pharma clients which will serve us a good base as we continue to grow. Because pharma is sort of immune towards any cash challenges that biotechs may have.
They provide you with stability. So that’s the goal. The biotech industry is going through some challenges but we continue to grow our biotech portfolio. So that’s an answer to your first question. The second one, yes, it definitely helps. Not just in terms of credibility and name, but also at the end of the day it’s a contract manufacturing business. There are a lot of technology. So the way we look at things is that we focus on making the molecule. Right? The molecule can impact plant health or it can impact animal health, or it can impact human health.
But the focus of PI as a whole is to make the molecule in the most elegant, efficient and cost effective man. The technologies that you put in, the experience we have in the CSM business, both in terms of R and D and manufacturing, that translates to making the molecule the best way definitely helps us when it comes to the pharma business.
Navid Virani
Perfect, thank you for that. Very clear answer. Next up, I wanted to understand. So we have also mentioned that we have commercialized 15 molecules over the last three years. Right. So and we are planning to scale that up as well in this year. So can you help us understand like the top three, four molecules, what is the kind of opportunity, you know, we are seeing that can drive growth coming going forward?
Mayank Singhal
Well, let me answer that. You see, obviously you speak a number, but getting into specific molecules and saying what are the opportunity size you would appreciate these are closely held strategies of large companies and we are bound by certain confidentialities to be able to express what they are and what they do. But as a high level, given the historical credibility of what we’ve been able to, clearly we see a couple of them who are in the big ticket items and I see that in the next couple of years they will give us substantial balancing act.
Navid Virani
Just one last question. So since I’ve been tracking PI for a good time now and I’ve been listening to your commentary saying that we were wanting to diversify in categories like electronic chemicals. I think you also mentioned semiconductors some time back. So where are we on this diversification journey? If you can share some progress to help us understand better.
Mayank Singhal
So I think if you missed earlier, but I think in my communication we already started electronic chemicals. We’ve done five to seven projects in that area and we see a very good opportunity coming in scale and we see this to become a good segment in the next four to five years for us. Maybe Atul, you may want to add something. Atul.
Atul Kumar Gupta
Yeah. So I think you know that’s a very promising segment on which we continue to work and there is a good traction. We have been able to connect with some of the global customers and working actively on some 10 odd. You know, the projects which will in going forward in coming period will give us a good revenue as well.
Navid Virani
Thank you for all the answers. Wishing me all the best.
operator
Thank you. The next question is from the line of Bhavya Gandhi from Dalal and brochure Stockbroking Private Limited. Please go ahead.
Bhavya Gandhi
Yeah, hi, thanks for the opportunity. First question was regarding we filed one product for First Discovery Molecule in India. Can you throw some light on the revenue potential? What Is the product like would the margins look like something on that front?
Mayank Singhal
As we mentioned that it’s in the lepidopteran space which is a pretty large segment of a crop and multiple crops. You can appreciate the size of the insecticide market for those crops in a couple of thousand crops. So that’s the opportunity segment that we have now. What happens inside the shapes obviously as we get closer to the market at that point it will be right time to estimate size and scale. As we said we’re the development phase but substantial interesting excitement more than the size about the ability to put the innovation out there and scale.
Bhavya Gandhi
Right. And on the pharma utilization, if you can throw some light what is the peak revenue that we can generate on a two to three year basis? If that will be really helpful?
Mayank Singhal
I don’t because if we are looking at a growth rate so there’s not an asset utilization model here. This model is about cr, DMO west contract development and research services along with and also investments that we’re doing. So obviously as we mentioned we are looking to at least get to two to three times our size over the next three to five years.
Bhavya Gandhi
Sure, sure. That’s it from my end. Thank you.
operator
Thank you. The next question is from the line of Sahil Chershad from Delta Investment Advisors. Please go ahead.
Sahil Chershad
Thank you so much for the opportunity. My question was on the agrochem molecules. That we have launched in the last three years. How much is there contribution in our current revenue now and how do we see this next going forward? Thank you.
Mayank Singhal
Sorry. Agrochem’s launch in the Qatar in the in the last two, three years, what is the contribution to the total revenue? Is that your question?
Sanjay Agarwal
Yeah, we talk about the freshness index which we put up always. So that’s around 16 to 18% of our Ekem export business and that’s what has been growing substantially in the last few years.
operator
Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Equities. Please go ahead.
S. Ramesh
Thanks for the follow up. So if you look at the pharma business in terms of the revenue ramp up now currently what is driving the revenue? Is it API sales or R and D projects? And can you share when you talk about client additions, what are the milestones you expect in terms of line of sight for the business in terms of contracts or you know, order book for intermediates. How do you really actually put that in perspective so that we can get some answer?
Mayank Singhal
That is the first phase we at the present moment are building a foundation. So it’s too early to have order books and scenarios. We’re building credibility in the market, we’re demonstrating our ability and our strategic focus is to move to the CRDMO play. And I would say that we are pretty happy with the progress that we made in that area. And the growth rate has primarily come from that area. And obviously as you would very much understand being in the CIDA play, which you would understand. Well, there’s a long drawn gestation, but as earlier Ramesh mentioned, the seeds have been sown and it is building the right customer clientele base where a lot of efforts are being put by the team and given the external dynamics and when the environment settles, we see this could turn up into a longer term as a three to four year scenario to drive the positive.
Ramesh, if you wish to add anything more at a high level, please go ahead.
Ramesh Subramanian
You know, thanks Mike. I think that covered it well on your first question, both products and the services business, which is essentially the RDMO business, both of them grew nicely year over year. So that’s an answer to your question. They contributed to the growth numbers. What we’re focusing on is to build a pipeline on the D and the M side that involves late stage programs and you’re doing okay there. It is a world that keeps changing given some of the policies that are that we still try to get clarity on. But in general there is interest in diversification.
The China One strategy is still active. We also have a site in Europe which is attracted to a lot of customers to begin a conversation. And again as I mentioned, there are some unique technologies that have come through the business flow being one example that are also attractive to customers. So we’ve been levering the brand, we’ve been leveraging the science that is the foundation for PI as a whole. We’re leveraging the fact that we have a EU presence and of course we have excellent capabilities internally and people to sort of build the brand. So yes, there is significant traction.
We just have to make sure that we are doing our job despite the uncertainty that’s created with all the policies. So I think Mayank said it right when the, when everything settled down, we want to be there with the customers. So.
S. Ramesh
I might ask, on the CSM business, this volume decline of 9%, is it because of deferral of orders or is it because some of your contracts are maturing? And how do you see the business excluding new products kind of go back to the normal double digit growth? Would it require new orders or repeat orders? How do you see that in terms of the progress in the business?
Ramesh Subramanian
This is broadly, you know, in line to balance the inventory level. So this is driven by, you know, supply schedules. So in the quarter one, we have seen some sort of balancing, inventory balancing by the customers, but we expect those supplies to renew in second half.
S. Ramesh
Okay. Thank you very much.
operator
Thank you, ladies and gentlemen. That was the last question for the day. And I would now like to hand the conference over to the management for closing comments.
Mayank Singhal
Yes. Thank you everyone for coming onto this call. We continue to appreciate your support and keep up fingers crossed for favorable monsoons and angle climate changes situation. Thank you.
operator
Thank you on behalf of PI Industries. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.