Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
PI Industries Ltd (NSE: PIIND) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
Nishit Solanki — Investor Relations
Mayank Singhal — Vice Chairman and Managing Director
Jagresh Rana — Global Chief Executive Officer
Presentation:
Operator
Ladies and gentlemen, good day and welcome to PI Industries Limited 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 Stardom 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 India.
Thank you. And over to you sir. Nishit. Sam. Yeah. Request to unmute your line and proceed.
Nishit Solanki — Investor Relations
Thank you. Good afternoon everyone and thank you for joining us on PI Industries Q4FY26 earnings conference call. Today we are joined by senior members of the management team including Mr. Mayank Singhal, Executive Vice Chairman and Managing Director Mr. Sanjay Agarwal, Group Chief Financial Officer Dr. Atul Gupta, CEO CSM acknowledgment Mr. Jagresh Rama, Global CEO of PI Ag Sciences and Dr. Ramesh Sugamanyam, Global CEO of PI Health Sciences. We shall begin the call with key perspectives from Mr.
Singhil. 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 the stock exchange websites. I would now request Mr. Singhan to share his perspectives. Thank you. And over to you sir.
Mayank Singhal — Vice Chairman and Managing Director
Yeah. Thank you. So thank you and good afternoon to everyone for joining the call today. I want to begin with a brief view on the global agrochemical landscape. Follow that the domestic agri environment and then walk you through PI’s operational and strategic progresses. The global crop protection market has been continuing a multi year down cycle. Recovery remains uneven from complicated by the global events during the quarter which has led to a clear shift to us. Just in time. The conference in the Middle east late February have introduced a fresh layer of disruption that the industry was not anticipating.
While the pressures are difficult they also reinforce the strategic value of geographical diversification. The domestic backdrop is generally encouraging on the fundamental reason that the near term industry demand has been muted due to the elevated channel, low crop prices and incidents of rains. Rapid season was good with increasing acreages structural drivers for our industry remain firm in place. The world still needs to feed, grow populations and farmers and globally are demanding solutions for a safer and more selective and more sustainable solutions.
Innovators and integrated R and D led manufacturing and forward trust aim of execution and will be the long term win asset moving to our business performance for the quarter. We are continuing to demonstrate resilience underpinned by the breadth of our portfolio and breadth of our customer relationship. More importantly, we believe the investments made over the four years that we continue to make have a meaningful strength of yield’s long term position to differentiate and move it into the next orbit.
Our consolidated revenue for the full year has delivered a 67.137 million with healthy EBITDA margins of 25% and cash and balance sheet of 34275 million enabling the company to pursue further strategic investments for long term sustainable growth. Our pharma business delivered a 40% growth for the full year with continued strength in customer engagement and innovators. Biotech companies will be investing in capabilities across process development regulatory frameworks we believe is representative importance for long term growth platforms, leveraging our deep diversity capabilities, integrated facility between India and EU and the operating model of strong innovation expertise.
Let me now draw your attention to the biologicals which has been our passion for over two decades during which we have lived one of the most comprehensive biological portfolios for the Indian market. Over the past two decades the business has emerged as one of the fastest growing segments of our portfolio compounding over 20% acquisition of a differentiated technology platform even as the global market excels and at once R and D capabilities of significant accelerating our growth ambitions globally.
We believe our technology has the potential to generate to address the next generation crop health and protection for sustainable and agricultural solutions. On sustainability, we maintained our position as S P Global yearbook again and our most recent SMP growers percentile has improved to 98 percentile placing us firmly in the top rated chemical companies in the world. I want to now focus on defining platform PI over the coming decades. Our in house Chemical entity program a discovery platform, our first MC pastor and effort Discover India now is coming to the market soon demonstrating our ability to invent at a global scale and take innovation from India to the world.
We believe there’s a major shift in the way BI will wait for the global scale manufacturing from a distributor to reposition itself as a global and inter backbone strength and partner across the value chain and turn ourselves into a life science company. We expect in 27 to deliver growth with exports and global biological traction backed by customer momentum as well as domestic business. With respect to gain from the new brand launches today we have science to move into the next orbit into a innovative mindset and a life cycle building from CIDO platforms, electronic, chemical and operating growth across multiple lines.
Our growth will continue to support strong balance sheet technological capabilities empowered by science driven platforms with deeper relationships with customers and strong understanding of the global work culture. Therefore, I conclude I would like to take this opportunity to acknowledge the decade long contribution of our Joint Managing Director Rajmi Sandh who has been a critical part in shaping support in PI. He has stepped down from legendary responsibilities including IR to focus his health will continue to be associated while he will continue to be associated with PI as non Energy Director of the Board, I would love to also take this opportunity to thank for the pr management and the Board and all the family of PR for this great commitment, dedication and the contribution that we’ve made in building PI over the last three decades.
But going forward I would like to make it clear that our group’s CFO Sanjay Agarwal will continue to actively engage with the investor community and ensure continuity and communications strategic integrations. I’m always there to support in any of those challenges. With that now I hand it over to Sanjay and take you through the financial performance details. So Sanjay over to you and thank you once again all of you and to Rajneesh for being an excellent part of supporting the company. Over to you Sanjay.
Nishit Solanki — Investor Relations
Thank you Mayank and good afternoon everyone. I’ll summarize the company’s financial performance for the quarter ending March 31, 2026 and for the full year FY26. FY26 as Vang mentioned, it has not been easy for AKM sector. However, we have been backed by our strong business model and hence navigated this near term industry cycle. We’ve also taken several initiatives proactively to work with our global Akim customers and we believe the sector is transitioning out of down cycle. For quarter four FY26 we reported a revenue of 15,652 million delivering sequential growth as per our guidance last quarter.
On a full year basis the revenue is 67,137 million delivering our growth on a three year CAGR. Decline in AKM exports is primarily driven by lower volumes reflecting the broader global industry contraction and customer delivery schedules. We have commercialized five new molecules in Akim exports and launched four new products in domestic agri brands. New brands now contribute around 80% of exports highlighting a focused de risking strategy and innovation led approach. Domestic agrochemical demand remains being impacted due to channel inventory pricing pressure, delay in the regulatory transition to biological portfolio and lower crop acreages impacting key crossover PI.
However, we expect this growth momentum to now pick up with a stronger current season. Our domestic business is supported by a strong product portfolio, new product launches and focus on several on ground initiatives led by technology and farmer engagements. This year we launched four new products, three in the herbicides, one in the insecticide. On a pharma platform we delivered 40% growth in revenue for the full year driven by growing strategic customers and our relentless effort to continue building capability to build a differentiated CRDMO model.
Global biologicals also continue to progress with ongoing investments in market and product development, focus on innovation and strengthening R and D capabilities in US and in India. Our gross margins for the full year as well as for the quarter stood at 58% supported by a favorable product mix and strong operational efficiencies. Further, at the EBITDA level, we delivered what we committed to the start of the year, a resilient margin of 25% for the full year. While the ETL for the quarter is resilient due to higher non receivable non SEZ sales on a full year basis, the ETR for FY26 remains at around 22%.
We expect FY27 and thereafter ETR to be in the range of around 23 to 24%. We have sustained our trade working capital in terms of days of sales at 139 days despite the volatility in the overall market. Our strong debt free balance sheet supported with net cash of rupees 34 billion provide strong resilience and flexibility for strategic investment. In addition, we have successfully implemented SAP S4 HANA which marks a key milestone in our digital transformation journey, strengthening our operational backbone, enhancing data visibility and enabling future scalable growth with improved governance as we see opportunities in FY27.
We expect a positive growth in FY27 supported by new product launches, especially our first homegrown NC in the domestic business and our pharma and biologicals continue to scale up with this, I conclude my opening remarks. I’ll now request the moderator to open the forum for Q and A. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press Star and one to ask a question. The first question is from the line of Saurabh Jain from hsbc.
Please Go ahead.
Nishit Solanki
Hi, thank you so much for the opportunity. My question is on the capex that you have incurred over the last three years which translates to almost like a 2,600 crore of capex. But we are not seeing a conversion of this capex into the revenues for the last two years and for that reason the asset turns which used to be almost like 2.5x dropped down to almost like 1.5 now. So. So wanted to understand where this capex is being directed to and you know, some sense in terms of how much of it is being focused toward the legacy project and the new projects and when do you expect this capex to be translating into the revenues.
Mayank Singhal
So I think that’s quite a question as well. The point is that if you look at these asset investments are done for a multi year ramp up both in capacity and scale of manufacturing. Some of these investments have been in the software arena with technology MCs and new business arenas which have a longer gestation and some of them are coming of color in the coming year and the next couple of years. So that’s really where I would answer that from a contextual point of view.
Nishit Solanki
But generally I thought the gestation period used to be pretty short. Right. We used to set up a plant in eight to nine months and then it used to start to flow into revenues. Now the deficit here seem to be kind of widening and 2,600 crore, how much of that would be spent onto the R and D and technology developments and how much on actual seed on the ground?
Mayank Singhal
Yes, but if the ramp up doesn’t happen over one year, as you would appreciate, you know the prevention pneumonical capacities are at X which are to the maturity five years. You build the plant, the ramp up typically takes four to five years to do that. Yeah. And plus the distribution in the newer arenas of innovation which have been over the last. So if you were to take an example, I don’t have the exact number but I think you can get that back later. The arena we’ve been doing a regulatory investment to take the new molecules into the markets.
That comes with a price tag and those are also investments. We’re building the new pharma capabilities and assets to create offering for tomorrow. So that’s really been split today. So obviously the present moment you see that. But also the industry cycle of the demand have been lower as you would say, occupational split. Fundamentally the new products are in at some point then maybe a delayed gestation would shape up. Yeah,
Nishit Solanki
Okay, sure. I have other questions but I prefer to get back into the. Thank you so much.
Operator
Thank you. Next question is from Land of Tejal Pradhan. Sorry, Tejas Pradhan from Citigroup. Please go ahead.
Nishit Solanki
Yeah, hi, am I audible?
Operator
Yes, go ahead.
Nishit Solanki
Yeah, hi sir. So for full year FY26, could you give a sense on what the growth would be for excluding your largest product in agro CSM business?
Mayank Singhal
If I get your question right, the last. Besides the new molecules, the new product growth rate.
Nishit Solanki
Yeah. So as you know, with all the new molecules we’ve been launching, they contribute around 18 to 20% of our total portfolio. And they also have been growing at a faster clip in the overall portfolio. So there the revenues
Mayank Singhal
Are declined because of the overall challenges. We know. But the new molecules they have been shaping well and contributing incrementally to a margin profile.
Nishit Solanki
Okay, okay. So just apart from the new molecules, even the existing molecules which you would have launched prior to that. Right. So if we just strip out the impact of the largest product, paroxysulphone, excluding that, would there have been growth in FY26 in CSM exports or that would have been a yoy decline?
Mayank Singhal
Well, if you look at the other lines, the biological mnemonic rules, yes, there’s growth but expected growth rates which were to be there given the external environmental situation and the agriculture scenario, they have not kept pace. But I mean eventually they’re going to come up to shape. That’s what we see from a global partners communication understanding. Yeah.
Nishit Solanki
Okay, okay, understood. And secondly, on the contract assets now we have seen a reduction from 1000 crores as of December 21st to 700 crores as of March 26th. Now while that has reduced on a yoy basis, it is still higher. I think in March 25th it was around 400 crores. Right. So would we expect further reduction over here to like FY25 year ending levels? And how should we look at this number on a steady state basis? What sort of level you target over here?
Mayank Singhal
Well, I would say that if it has a margin huge reduction, about 30, 35% as you would have seen in this year for the last quarter this subject to asset utilization to value a product in the pipeline and long chain of products. So I would say this will remain over on the same level given where the business model structures are today.
Nishit Solanki
Okay, okay, thanks. And just one more, if I could squeeze in, would you have a sense on would you be able to share what the capacity utilization would be at company level for FY26?
Mayank Singhal
Yeah, the FY26 is about around below a bit below 80.
Nishit Solanki
Okay, thanks. Thanks.
Operator
Thank you very much. Next question is from the line of Vivek Rajamani from Morgan Stanley. Please go ahead.
Nishit Solanki
Hi sir, thank you so much for the opportunity. Just one question on margins. I think I can see over the last couple of quarters and for much of fiscal 26, you’ve been able to maintain your gross margins at a very healthy level of 58 to 59%. But for the last couple of quarters at least on the EBITDA side, we’ve seen a bit of compression going back to the 22% mark. Whereas we started the year with the 27, 28% margin profile just going into fiscal 27. If you could just give us some sense of how should we think about margin profiles both on the gross margin level and margin level.
Mayank Singhal
So if I look going forward we’ll continue to focus on maintaining the gross margins. Right. But obviously you know, the volatility quarter to quarter could be different but the average watch margins as we look at such a focus to continue managing this.
Operator
Sorry to interrupt but we were not able to hear you. Can you repeat the last one second please? I
Mayank Singhal
Said you we are not the quarter to quarter volatility as it continues. But if you look at the average gross margins for last year, we continue to focus to maintain the gross margin at levels as indicated earlier.
Nishit Solanki
Sure, sir. And the EBITDA margin would be a similar comment
Mayank Singhal
Given the present environment are wearing, given the present mind the volatility of the various multiple factors, whether it’s input costs, whether it’s other cost structures and other challenges. I would say our target is always to say that how we can continue to manage them and beat them better. But it’d be very difficult to give a specific answer today to say where would they be. But yes, as the company continues to manage and manage that. Because while making sure that we don’t compromise on our long term trajectory and continue focus to look at market share and growth.
Nishit Solanki
Sure. So that’s clear. And if I could just squeeze in one more clarification in the opening remarks when you mentioned you’re looking at positive growth in fiscal 27, would that be positive revenue growth or positive earnings growth?
Mayank Singhal
Well, clearly we’re looking at revenue growth and some of the key drivers for this positive going forward.
Nishit Solanki
That’s clear. I’ll rejoin the queue. Thank you so much.
Operator
Thank you. Next question is from the line of Rohit Nagaraj from 361 Capital. Please go ahead.
Nishit Solanki
Thanks for the opportunity. So in our PTP we have indicated that we have received regulatory approval for a launch of a nematode in US So what is the kind of scale up that we are expecting over the next maybe three to five years? And is it a biological or a synthetic one? Thank you.
Mayank Singhal
I didn’t get your question. What was the question, sir? It was not very clear. Can you repeat please?
Nishit Solanki
Yeah, so we have received the regulatory approval for the launch of a nematode in US that’s what we have indicated in our ppt. Is it a biological and what is the kind of market size that we are tracking or in terms of this particular product, what is the kind of potential revenues that we can generate over the next maybe three to five years?
Mayank Singhal
So I think I will take this as first and maybe generations. Fill me in there. Yes, it is a launch of a new biological member adored. And it’s the first time a new biological member is coming in the market at a scale. I think the growth rates at which you can look at what we did into that maybe can give a better feeling.
Nishit Solanki
Yeah, yeah, no, absolutely. And hey, thank you for asking this. So this is, you know, based on the performance we have seen this kind of a very unique biological nematode
Mayank Singhal
Product. Most of the nematode product which are there in the world today, they are mainly applied in the soil. Today there is hardly any nematode product which can be a foliar application. So first of all, this is the first time that we have introduced a product in the market which is a foliar application based. Second part basically in this is that this product, the nematode market overall, globally, especially in Brazil, US and these markets has been growing very rapidly and more and more farmers are realizing the problems of nematode.
We are expecting a significant growth from this product. We have US is a third market. We have already launched it in Brazil and Mexico. US is a third market where we have launched in Brazil. We are basically seeing this year that we should be almost more than tripling our sales for this particular product. It’s a product which competes very well with the synthetic chemistry products and we are seeing some very positive results and good performance from the pharma side. Only one caveat I will put.
We are still in the early stage of developing a product pharma acceptance to biologicals. But what we, I think what generation is saying that is very positive about what we are seeing and I think it will take a couple of years to establish a product. But the results are very encouraging and gives us a huge capability to say yes, we need to invest to build the markets and the investment should be an aggressive approach to build this product.
Nishit Solanki
Sure, that’s helpful. The second question in terms of CSM business, so last year we had indicated FY25 the contribution from new products was about 15 to 18% and this year we have said FY26 the contribution is about 18 to 20%. If I do the math, it seems that on a year on year basis the new product absolute revenue strength seems to be sluggish or slightly negative. So how do we look at it from the FY27 perspective?
Mayank Singhal
You’re right. You see as you can very well understand, the global agriculture market scenario itself is challenging. And you can see that in the performance of large companies trying to put new products customer expectation acceptance due to commodity prices. Clearly as the situation is very volatile. But we do see this becoming a bit better. Right. And I think fundamentally the whole agriculture cycle has to pick back and innovation could get adopted at a much faster rate. So we see that to be looking a little bit more positive.
And as you would have seen a commentary over last year, there were challenges in the market and what was expected to turn around and how companies are looking second quarter, hard second half but still not come around. But hopefully things shape up in the right direction. We will see a better number coming from the. That’s really where I would put that stock. Yeah,
Nishit Solanki
Just last one. I’m teasing in on our novel NC Molecule PXR Milliprol. We plan to launch in the Indian market. What about the global launch? Are we expecting any kind of licensing for the same and what could be the timeline for the sale? Thank you.
Mayank Singhal
Yes. Right now for the global markets we’re working in a couple of global geographies where we will be looking to. Each job has different requirements, regulatory requirements, local and local. So we’ll be looking to put in application to filing probably at the end of this year or next year. And then we will go into the regulatory framework and we’ll be looking at strategic partnerships and we’ll announce them at the right level when we come to the right point of decisions with them. The first point today is at the global level and the regulatory framework.
Nishit Solanki
Perfect. Thank you so much and all the best.
Operator
Thank you. Next question is from the line of Rahul Jain from Credence Wealth Management. Please go ahead.
Nishit Solanki
Hello? Hello, can you. Am I audible? Hello?
Operator
Yes, I’ll go ahead.
Nishit Solanki
Sure. Thanks for the opportunity. So my questions are centered around the electronic chemical. So typically we have mentioned in the previous call about, you know, commercializing about four to five Molecules. So if you could share some details in terms of the molecules, what kind of revenue contribution, what kind of end application each of these molecules are supposed to serve and what kind of customer sets. We have been talking both between Japanese and the non Japanese. That is my first question.
Mayank Singhal
And understanding as you have seen that in the past in the PR commentary of handling innovation. We are working on some new innovative ideas with companies and as you would say they are right now at the ramp up stage. The electronic chemicals, they are not a significant portion of the company’s populace but what is an indicator that we are very strongly working in that area and once we scale up we’ll have the right answers. But to give into specific their niche applications and they are unique in their offerings and that’s the area which we always operate Sir.
Nishit Solanki
Sure. And sir, if you could share some kind of you know typically what can be the size of this segment of our electronic chemicals say next two, three years. Can this be a thousand crore with next three years?
Mayank Singhal
Well I don’t know about three years but yes, certainly with time we will definitely look at that. That is our target. We would love to do that. As you stated earlier last year we have looked at saying yes we’re looking to target about 100 million in the next four to five years in this segment.
Nishit Solanki
Last bit. So when do we expect the pharma to turn EBITDA positive?
Mayank Singhal
The pharma revenues are as you can say today. As you see the global situation, the CRTO play is a very what you call swing industry, not play. We are right now very confident that we look at certain interesting opportunities, some part of the value chains which should fruitify with time. Obviously these investment mindsets are shifting as we see these things move and as we have stated earlier achieving a 5600 sort of top line is when you would see these things move into a positive phase. This could be a couple of years if not a little bit more than that to get to that space.
But right now the company is more focused in building capabilities, offerings and building customer confidence. To look at this value delivery that’s really where we are.
Nishit Solanki
Thank you so much.
Operator
Thank you. Next question is from the line of Ankur from Access Capital. Please go ahead.
Nishit Solanki
Yeah. Hi sir, thanks for the opportunity. First question on the overall pricing environment. Given the volatility in domino prices off late and you know the pressure from Chinese led the global pressure there on the cycle as a whole, is there any significant pricing correction or pressure that we are seeing across our portfolio? And second bit one clarification there the 5 odd percent realization decline in our exports that we are seeing. Is it more a product mix issue or it’s a RM deflation or some pricing correction there?
Mayank Singhal
Sir, as I was to answer, there are pricing corrections and in currency deviation we have passed through muzzles. Yes, we are seeing volatility in the raw material prices and they have come in back. But there is a balancing act in the company’s playing in this volatile market while supporting customers looking at end customer challenges to ensure that we have a sustainable growth and continue to put high utilization of our delivery plans while focusing on managing our gross market. So as you will very much understand, I can’t give you a straight answer because nobody is a very volatile market or they’re streaming like a yo yo.
Raw markets stream like a yo yo tomorrow yes, tomorrow no. But the outcome today is yes, there’s an impact. We are focusing on those impacts. We’re looking to how to create a value extraction in the company and the company has a very strong focus to see how we can optimize and maximize taking consideration from customer to suppliers. Yeah,
Nishit Solanki
Sure. So, okay, let me put it this way. Our focus here will remain on volume growth for our existing as well as newer products or we will prefer to have a balanced approach in terms of margin as well.
Mayank Singhal
Well, our focus today would be to continue to hold the market share, the volume because the margin could always return back when the market change. That’s typically our business focus. Right. Given the volatility that you see and does not mean that the margins will not come, but that could also. But they are more volatile in nature right now, as you will understand. Yeah,
Nishit Solanki
Sure, that’s helpful. And just one clarification if I may ask. The electronic chemicals or the, you know, the newer areas where we are expanding into these will be large, the capex for them. These will be largely NPP based or there will be some dedicated capacity coming in or which is already there in the works.
Mayank Singhal
So again, these are niche chemicals, those are multipurpose assets and some may be specialized assets. Right. Because you’re not in the commodity end of the electronic chemicals, we’re more focused on niche and compact areas of operation.
Nishit Solanki
Sure, Mek, that’s helpful. Thank you and all the best.
Operator
Thank you. Next question is from the line of Siddharth from Equal securities. Please go ahead.
Nishit Solanki
So on the pharma business, could you just share your thoughts in terms of growth and profitability over the next two, three years. How should we see this business scaling up?
Mayank Singhal
As I think I mentioned to the earlier Question was exactly that. We are looking right now to build those capabilities in the next two as I said the EBITDA swell we would be able to look at five 600 crore top lines. We should be able to move into that phase and as you would very well understand being the CDMA play, you know it takes a long time to build the foundation but then you start seeing an accelerated curve which moves fast because the entry barriers and the regulatory frameworks followed with early stage products you start targeting and when the cycle picks up it takes and take up.
That should be the approach that we’re seeing. So I see that in the next two, three years to start showing some early shifts. Yeah.
Nishit Solanki
Secondly on the global biological business given that now we have started getting product registrations and also building a distribution model across geographies, how should one think about the OPEX in this business and when do we achieve a scale where we break even?
Mayank Singhal
Again I would say the way to answer this what we are seeing as Indrash mentioned earlier we’re seeing the project positive trajectory as you would see the markets itself are depressed within the agri sector. We are clearly seeing a great acceptance of our technology and product performance and I would say we are very much positive to see that in the next couple of years we should be in the position that you’re looking to achieve for us as you rightly questioned to get into a again if you see more opportunities of more innovations we will be investing and we will not do that without a value add.
So we are definitely very excited to what we see. But a couple of years from now doesn’t look too far from us to be playing that game.
Nishit Solanki
And lastly for FY27 in terms of any we would have any higher OPECs in terms of any large registrations or any other one time cost that will be coming in our PNL given that we are looking at commercializing a few products. Yes sir, this is an ongoing thing which we have been since we’ve been investing into R D and we are looking at these new NC’s so this has been continued for the last few years and the same trend will continue of 5200 crores of additional spend which goes
Jagresh Rana
Next year. Yeah
Nishit Solanki
Next year FY27 as well we’ll have similar expenses for the R and D and also for the launch since we’re looking at the biosimilar launch this year we’ll have some additional cost in the next few quarters on that.
Jagresh Rana
And for the global products also we would have additional cost coming in.
Mayank Singhal
Yes There is, I think the question very to be very precise to your answer next year is going to be heavy investments in building out months. So those costs will be there. Okay,
Operator
Thank you. Next question is from the line of Surya from Philip Capital. Please go ahead.
Nishit Solanki
Yeah, thanks for the opportunity. My first question is on the investment priorities going ahead and what is the kind of a capex in terms of the investment priorities. I was just wanted to understand any, any specific investment that we are talking about new business opportunities.
Mayank Singhal
These would be the capex. We tried it in the past also. So we should have 70 to 800
Nishit Solanki
Crores of capex this year as well again to fill in building new capex capabilities both at the manufacturing level, some of the new launches which we are going to be having R and D spends
Mayank Singhal
Which we are going to have and across both pharma and our agrochemical business.
Nishit Solanki
Okay. And also to have better understanding about the kind of incremental contribution that we should be seeing from the newer business area. Is it possible to discuss what is the kind of constructive order book position currently in terms of the areas whether it is agrochem, pharma and whichever newer area that we are talking about?
Mayank Singhal
Well we don’t have a specific year for newer areas but I think somewhere around 1 1.2 billion which is already the order of the. Which continues to hold on. Yeah, but we won’t have a specific breakup of those right now which typically the other big businesses are what we just see like the biologicals and all. There’s no other situation there and pharma is too insignificant in terms of top line the PI and get the numbers for the books down.
Nishit Solanki
So sir, then next next question would be on. On the supply chain constraints. See you have mentioned about maintaining the gross margin situation for the full year FY27 but if you can say something what is the kind of availability situation and what is the kind of impact that possibly in the near term that we can see because of the availability of raw materials. Whether that’s a big challenge at this juncture.
Mayank Singhal
You have got me. Exactly. So I think it’s one of the most simple question but the most difficult answer maybe or difficult answer was a simple question. Yes, you know very well as you all we know we are all challenging that availability and that’s not something in our hand but so far we’ve been able to manage and we’ll continue to manage but we never know when the situation changes the way the world is today. Right. And I’m sure that’s applicable to most of us in sector and the industry.
Nishit Solanki
Yeah. Thank you sir. Thank you.
Mayank Singhal
Thank
Operator
You. Next question is from Motil Oswar. Please go ahead.
Jagresh Rana
Yes sir. My question regarding pharma segment and you have mentioned in the PPT a significant increase in CDMO inquiries. So how is the conversion is going to happen considering all the inquiries? You have number one. Number two we have seen in the PPT your services business has increasing significantly. So what is leading this business. And also you are adding new customers in the last 12 months. So considering all these factors next two to three years how much growth you are expecting in this industry.
It.
Mayank Singhal
I think we just answered that earlier. Yes. As you know we are trying to CDMO the success rate moving to 2 years the customers new avenues have been opened. Really? As mentioned we’re looking at 500-600s. Sorry
Operator
To interrupt you. Your audio is not clear
Mayank Singhal
As we mentioned earlier. Right. And that there is all these initiatives which have been taken. We are looking to target to get this next two to three years. Yeah. 5600 crore business which could then become the J curve approach. To look at how we can look at more expected growth going forward.
Jagresh Rana
And for the outlook perspective you have written we remain positive for the growth in FY27. So any number. Can we. Can we talk on a double digit, lower double digit mid teens kind of growth you are expecting in FY27?
Mayank Singhal
I would say yes growth for sure. Double or late single. Well, what would be subject to how the world reacts. Yes, normal case scenario.
Nishit Solanki
Normal case scenario.
Mayank Singhal
I can’t look at the normal case scenario right now because the quarter is once it’s too close to the quarter to answer that. But yes I can say we can definitely look at growth my friend at a later stage of nearly late stage in the digital early stage, double digit at the worst case scenario and let things take.
Jagresh Rana
Worst case scenario.
Mayank Singhal
Yeah, the worst case we will have definitely have some growth. I hope because we really go that there’s no oil and there’s no fuel and there’s no food then we can’t do much. Right. So today’s world to answer that is challenging. But we have plans for growth in a better aggressive pace compared to the competition. Thank you. Thank you so much.
Operator
Thank you. Next question is from the line of Abhijit Akela from Kodak Mahindra. Please go ahead.
Nishit Solanki
Good afternoon. Yeah thank you so much for taking my questions. The 1100 crore capex that we incurred for FY26. Sir, will it be possible to just break down the specific key Projects in which this investment has gone.
Mayank Singhal
Yeah. So across both the agrochemical pharma and the R and D spends which we have done. So we were about to
Nishit Solanki
Commercialize Aquilona facility in Lodi plant. So that has taken substantial sum plus the MPP one of the mpp the flow which we have commercialized during this
Mayank Singhal
Year. So the strengths have been there in the agricultural side and then the last is on the R and D investment which we have been doing.
Nishit Solanki
Okay, but just to clarify the presentation sheets, Pharma Capex was about 91 crores for the year. Yeah. So then should we understand that the remaining, you know, say 1000 crores or so is all agrochemicals or how is it
Jagresh Rana
Agrochemical and in the RND space and
Mayank Singhal
The fine chemical area we’ll be talking about
Jagresh Rana
That include all the electronic chemicals, agrochemicals, the R and D fine chemicals.
Nishit Solanki
Right, okay. R D is. Sorry, yeah, sorry, just to clarify the chemicals. Any specific plan that’s been put up or part of the MPP itself?
Mayank Singhal
Yeah, it’s one of the MPPs which was getting commercialized as you mentioned earlier. If you would not. Okay,
Nishit Solanki
All right, thank you. Second one for plant healthcare. Would it be possible to just quantify the revenues for FY26?
Jagresh Rana
So they’re giving the range around 12, $13 million.
Nishit Solanki
Understood. And yeah, sorry I might have missed this earlier, so please excuse me if I did. But on contract assets of 700 crore, what’s the kind of trajectory we are expecting in the year ahead? I mean will it decrease further or by how much?
Mayank Singhal
Well, I think that’s the range we’ve always been in in the last few quarters. Given the business model and scenario, balance of capacity, inventory, customer needs and also look at the volatility of supply chains, we would look at keeping it at that level.
Nishit Solanki
Okay, thank you so much, sir. All the best.
Operator
Thank you. Next question is from lion of Rupesh from Long Equity Partners. Please go ahead.
Nishit Solanki
Hello sir. Thank you. Thank you for the opportunity. First, I have one request. I mean one of your largest product in the CSM segment. I mean there are patent race. This is nothing new. Most of the cdmos or CSM companies have to deal with it. What would be really nice is if you can give address that question in your press release in some way that I think would be really appreciated because there are so many layers to that molecule. So that is my request. The first question sir is on that molecule, do you see sort of like a gradual decline over next two, three years and then Bottoming out or do you like a cliff that we will see only in that molecule?
I’m not asking about rest of the business.
Mayank Singhal
Well, I don’t know how to answer that. Number one, you have to appreciate that this is not partnership. Revealing strategies would be a challenging scenario in the today’s context. We are in a highly competitive world and as you would, I would like to look at model it through the approaches that you’ve seen for any other product. That will be genericization in the sector.
Nishit Solanki
Okay. Okay. The second question sir is for electronic chemical business. What is, what is our current gross block and what kind of gross block do you expect in next two, three years
Mayank Singhal
We will be making another few hundred crore investments in that area. Again there’s a new avenue of growth so new assets and plants will be built up. We continue to see that we want to scale this business up. We have got four to five products in the pipe which are working well. We are looking to develop more strategic areas into this. So investments of the gross block will be going up in this area. And then over the next five years we start seeing terms of the volumes and revenues that we plan to achieve.
Nishit Solanki
But sir, is that number like 200 crore, 500 crore, thousand crore. What kind of asset asset done? Any range would be helpful.
Mayank Singhal
Anything substantial of that area. 500 crores. The number would be. I would really look at 100. 200 is not a significant investment as you would appreciate in the plan today.
Nishit Solanki
And asset term would be high or low. Some idea around that
Mayank Singhal
Because you like to invest into the business. The asset terms that you would see in the CSM business, the early stages have lower asset terms. But business when it touches mature reaches a scale. You start seeing the those curves. Yeah.
Nishit Solanki
Okay. Okay, final question. Study on the NP molecule. In the NP molecule, I mean for the life. Life of a patent, right. Let’s say 15 years sort of. I mean what, what kind of potential? And I know it’s a very dynamic world. There’s so much hard work you have to do, find partners and all that. But, but what kind of potential can it be for. For the company of our site? I mean today we are at, let’s say 8,000 crore revenue scale. Would it be significant for our scale or it would be, you know, 10% kind of scale and some range there would be very helpful in terms of potential over the life of the patent.
Mayank Singhal
Significant amount. I think we are pretty calm. We are putting almost been an innovation out. I think the year of launch and the first season of launch will give us the impact at a larger scale. To look at the significance, I think the most important significance that needs to be noted is taking an innovation commercializing. I don’t think a single company from India has done that and is probably the first company in any chemical sector to do that. So that’s the benchmark of putting our capability take from discovery to market and rest assured it has created a significant number for us to invest and build followed with that learning we will have an understanding from the season that we go and we’ll be in a better position to answer.
And we are also looking at this as a capability build up for more new things on the pipeline to come. So that’s the way I would look at that. The shift in the PI capability mindset from distribution company to manufacturing for innovation now to take innovation to the markets. So that’s really what is the ability which is coming through. While this is demonstrated well with this product, it gives us hope to build a lot more for the next multi decades, multi years. If I was to say to bring innovation to the market.
This is the significance of this product, the number significance of the revenue yet it should be good contribution to the top line for the domestic business to start with. Based on some of our learning for the season or two, we’ve been a better estimate to look at the potential sizing of the product.
Nishit Solanki
Yes. Okay. I hope at some point of time you give some preview into the upcoming NCE molecules or I do hope that and all the rest.
Operator
Thank you ladies and gentlemen. We’ll take the last question from the line of Aram Arvind from I pms. Please go ahead.
Nishit Solanki
Hi, am I audible?
Operator
Yeah, we can
Nishit Solanki
Hear. Yeah. Thank you for the opportunity. So my question has to do a bit with the client that we are serving for our biggest molecule. So since they have come up with the guidance of their formulation in which they use our molecule, they have come up with the guidance of beating their conservative guidance of full year last year. And so I’m just trying to understand if our shipments to this client of ours is going to get better in the upcoming quarters. So basically what I’m trying to understand is if we will have growth on our AGM export sector which is dominated by one single molecule, do we see traction in that molecule going forward?
Will we see volumes picking up in that molecule specifically for the next couple of quarters?
Mayank Singhal
Well, I would look at the way you looked at that customer and followed by guidance from our perspective when contract manufacturing. So what we are building in is already what we have contracted as we Appreciate the supply chains along. Clearly it’ll be too early for us to answer and to let guidance to say how we see that. But clearly, yes, if they do benefit, it will see reciprocating benefit of time.
Nishit Solanki
Right. Just to follow up on that since I know we’ve addressed about the contract assets already on the call, but we’ve seen a reduction of contract assets going from Q3 of FY26 to Q4 of FY26. So does this mean that our clients are actually. So we are basically billing our clients and they’re actually drying up on the reserves of our contract assets. So would we see this trend moving forward? Let’s say by Q1 27, Q2 and Q3 27.
Mayank Singhal
I would say this is a business. There’s a level of influency which is also kept. There will be higher level given the volatility. I think we depreciate in the world. We are looking to keep in, build and optimize capacity. So there’s no point you run out. Right. So that’s how we’re looking at it. Right. And I think even the scale and the complexity of the value chain and production contract assets below 5,6,6 crores would be a challenging number to manage that risk.
Nishit Solanki
So any number that we can probably close on the contract assets for 27,
Mayank Singhal
As I mentioned, we’ll be remaining within this range for what we estimate for today it could shift from a quarter to quarter basis.
Nishit Solanki
Right. And another question just on the electronic chemicals side. So what is the approximate revenue figure that you can give us for the electronic chemicals for FY26 and any guidance for 27 and 28 as well? Because some of your clients have been talking about the end market dribbling by FY30. So I think there’s a lot of traction in these molecules that PI is entering into. And I’m just trying to understand the whole market for these electronic chemicals and the numbers from your side for guidance.
Mayank Singhal
So let me be honest to tell you we are right now in the early stage. The numbers are not significant for the PI top line. We’re the development stage of some of these products. We’re building capacities and understanding and capabilities for the customer. In two to three years we will be in a better position to understand the scale themselves. As you would understand, there’s a very serious level of confidentiality with our customers and confidentiality contracts given highly competitive environment in this space.
But we are excited and gumbo about it. Given the facts. The areas that we are operating are in the niche space. And as these are like we have mentioned four to five products which we’re evaluating, developing, they’ve gone into the various phases which will be looking at the manufacturing phase scale at the basic date. Yeah,
Nishit Solanki
Right. So for it to have let’s say a significant contribution like let’s say how pharma is having in our business right now, five,
Mayank Singhal
Six years is estimated about somewhere about eight to $1 million of revenues in this space.
Nishit Solanki
Right, right. Yeah. Thank you for that and any commentary on gross margin guidance for 27.
Mayank Singhal
So I think as you have questioned by a couple of others, we said we continue to manage to manage and maintain the average cost management last year.
Nishit Solanki
All right, sir, all right,
Mayank Singhal
Yeah, that’ll be all. Thank you so much.
Operator
Thank you. Next question is from the line of Sajal Kapoor from Anti Fragile thinking. Please go ahead.
Mayank Singhal
Yeah, hi. Thank you for the opportunity. Two questions. PI has spent more than a decade discussing adjacencies like pharma, electronic chemicals, life sciences. Yet agrochemicals still remain the dominant economic engine of the company. And we have been discussing bioso. So as on today from management perspective was the original assumption that PIs process, chemistry and customer trust advantages would automatically transfer more easily across domains than they
Nishit Solanki
Actually did. And what has been the single biggest unexpected challenge in building meaningful non agro? That’s my first question. Thank you.
Mayank Singhal
So I’m not very sure about whether you’re talking about a decade but we made these investments over the last two, three years. Clearly agrochemicals are bread and butter. So on this we wanted to discover not only manufacturing adjacencies have been only evaluated in the manufacturing space. And I think if you look back at the history of PI, even in the manufacturing contract manufacturing it took about 10 to 12 years before a significant impact on numbers could be seen in the past early 2000s. That’s what it really is when you’re getting the innovative phase.
Even if you completely understand crdmo, a product doesn’t get into a manufacturing playing pharma at least for five to six years of impactful numbers. Right. So that’s really how we are looking at it. Same in the electronics, we’ve invested them over the last three to four years. We’re seeing products there are scale up, we are seeing investments that we are making so they will be time. So I don’t know whether I would say that that’s a concern for us but this is something that we see working well.
But in the strategies of the chosen play we also have a differentiated play, not Just the large scale commodity play the other. Yet there are challenges from the sectors, especially in the pharma sector. There have been challenges in external environment investments, biotech startups, reduction back pays. So the aggressive method which is supposed to be approached has become one challenge investment. But now I see that sector picking back up so we could see those scales come up. Yeah,
Nishit Solanki
Sure, sure, that’s helpful. I was actually alluding to the 2012 annual report. But
Mayank Singhal
Anyway, I mean what has PI learned so far about the difference between scaling ACT and CDMO versus scaling pharma crdmo? And what capabilities still need to be built
Nishit Solanki
Before PI can genuinely compete with established pharma synthesis leaders on innovation depth, not just chemistry execution. Thank you.
Mayank Singhal
Yeah, you see we invested that. We have looked at the biological option capabilities which have been invested. We started working in that. We’re looking to further investment in ksm. We have a GMP facility. We need to be further upgrade for cdmo. Archero Labs are going to be fired up in this year which is going to create pipelines for the future. So I believe in the next year or two, number one, you can’t build all the capabilities on the offerings. So we are looking at capabilities which we need to have which we can differentiate two areas where you want to partner so we can become a full time integrated partner for a pharma biotech startup to a company with strong manufacturing in a regulated and an unregulated environment.
So I believe in the next couple of years we’ll be in a pretty good unique competitive position with best of class assets to play this game well.
Nishit Solanki
Wonderful. Wish you all the very best
Mayank Singhal
And team. Thank you.
Operator
Thank you. Next question is from the line of Archit Joshi from Nuama. Please go ahead.
Nishit Solanki
Hello.
Operator
Yes Archit, go ahead.
Nishit Solanki
Yes sir. I just had one question. Would it be fair to assume that the current AT CAM market is tilting more towards generics than that of patented products? And if you could also allude as to why would this be happening? Would there be some stress on the farm economics level or is it the farm demand that is going to rough patch? So any thoughts on that would be quite helpful.
Mayank Singhal
Yes, I think that’s a good analogy. If you were to pick it up. If you look at it to be very honest, the commodity prices are not moving further than the prices on the other side are high. The input cost of the farmer is going. Agrochemicals are becoming a necessity. So it’s looking at cheap solutions. But there are positions and openings for the opportunities in certain sectors where it doesn’t have any value contributing solutions where innovation is coming. While the phase claim rate of adoption may have slowed down, it doesn’t mean new molecules, new innovation has not been adopted.
Is there that cyclical adventure and as the aggression would come up in the commodity cycle and the agriculture sector, this will accelerate? That is hard to view and but it doesn’t mean that you will still see innovation is moving. But don’t forget whether commodities or the genders have gone to the bottom of the pit when the markets hit bad, well, innovation will still consider setting pits. So on an average Canada, you would appreciate that innovation is still continuing to do better and on short term.
Or windows of cycles if you cut in pitch. Yes, you could see the cycles and trends that you’re talking about with what we call external band. Yeah,
Nishit Solanki
Right. Thanks. Thanks. That helps. And all the best.
Operator
Thank you very much. With this, we conclude today’s conference call. Now hand the conference over to the management for closing comments.
Mayank Singhal
Thank you everybody for joining the call and thank you as always for your support and look forward to catching up with you over the next quarter. Thanks once again. Warmer thank
Operator
You very much on behalf of PI Industries limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.