Good morning, everyone, and thank you for joining us on PI Industries Q3 FY26 earnings conference call. Today, we are joined by senior members of the management team, including Mr.

Mayank Singhal, Executive Vice Chairperson and Managing Director; Mr. Rajnish Sarna, Joint Managing Director; Mr.

Sanjay Agarwal, Group Chief Financial Officer; Dr. Atul Gupta, CEO CSM AgChem; Mr.

Jagresh Rana, Global CEO PI Ag Sciences; and Dr. Ramesh Subramanian, Global CEO PI Health Sciences.

We shall begin the call with key perspectives from Mr. Singhal.

Following that, Mr. Agarwal will share his views on the company's financial performance.

Thereafter, the forum will be open for question-and-answer session. Before we begin, I would like to underline that certain statements made on today's conference call could be forward-looking in nature.

A disclaimer to this effect has been included in the investor presentation that is available on the stock exchange websites and which has been shared with you earlier. I would now like to request Mr.

Singhal to share his perspectives with you. Thank you, and over to you.

Yeah. Thank you, and good morning.

Again, a little apology for a little sore throat, but I shall try and make my best effort. I shall commence today's brief perspectives of the global agchem industry environment and touch upon the PI's performance and the strategic progress.

The global crop protection market is approaching the latter phase of prolonged downcycle driven by the distribution destocking, adverse weather conditions in certain regions, soft commodity prices, and elevated interest rates. Channel inventories are gradually normalizing, and in-season buying has begun to improve.

Although product pricing continues to remain soft, particularly for the generic category. The farmer buying behavior is expected to remain cautious and sensitive to the commodity realization and the liquidity conditions.

At the same time, global innovators continue to optimize supply chains and recalibrate inventory levels. We are seeing early signs of stabilization and gradual improvement expected to come over the quarters.

Coming to India, the rabi sowing progress is ahead of late last year supported by healthy soil moisture, high reservoir storage levels above long-term average. However, the demand for key agrochemicals during the quarter remained muted due to elevated channel inventories, adverse weather conditions, lower crop prices, price realization stayed under pressure, and volumes have been primarily driven of revenue performance.

Looking ahead, the structural demand remains intact. Sustained innovation in advanced crop protection, crop enhancement solutions are central to the global agricultural productivity.

Structural agronomic challenges, environmental conditions, and considerations in economic realities are shaping the farmer's expectations. Growers are increasingly seeking solutions that are safer for the ecosystem, effective against evolving pest and diseases, resistance, and capable of delivering higher productivity to meet rising demands for food, fiber, and bioenergy.

Now, moving to our business highlights. Q3 '26, agchem exports moderate in line with the overall demand softening inventory levels of many key products based on the already higher base of PI's extraordinary performance over the last couple of years, resulting in customer supply scheduling.

We are now on track to commercialize 8 to 10 new molecules, with five molecules already commercialized in the year. The strategic initiatives toward technology enhancement, portfolio diversification, strengthening the R&D pipeline, and adding new clients progressing well.

Our domestic business are mainly impacted by lower farmer demand of high-value products. Now coming to pharma, we have delivered a 50% year-on-year growth.

During the period, we have added new clients to our portfolio and continue to expand the opportunity funnel supported by dedicated business development, building new capabilities, operations in the US to Europe, and expanding to the east markets. Near-term momentum, however, has been moderate due to global biotech funding, going forward and uncertainties.

While in the early stage of development, it has impacted ties and a slow conversion of selected opportunities. In biologicals, we are very excited as we are progressing steadily towards building a scalable global franchise of peptide-based unique platforms, enabling differentiated solutions across crop and geographies.

Regulatory milestones, which is the approval of half and half of beta in India and ongoing filing in the US and Latin America on a long-term ambition. We continue to allocate capital towards product innovation, market development, and strategic partnerships in the region, including the US, Brazil, and Europe, Mexico, and India to support the long-term scalable growth.

PI improves its S&P Global Corporate Sustainability ranking at 98% percentile. I'm pleased to share PI has been featured in the S&P Global Sustainability Yearbook.

This is again an industry-marking ranking among the top ESG-rated companies globally. Despite the near-term softening, our underlying fundamentals remain strong.

Development at scale of—

Yes. Hi.

Sorry. Despite the near softness, our underlying fundamentals remain strong.

Development and scale-up of strategic group platforms are progressing as per plan. A robust balance sheet and an innovative pipeline remains healthy.

We are continuous drivers, a fully integrated research setup, one of its kind, out of our center of Jaipur, critical to our growth aspirations of differentiation. Our teams are developing technology platforms that are giving opportunities across newer verticals, such as biologicals, specialty, and electronic chemicals.

Now, the first NCE from India, Pyoxanilicpro, is under registration in India. The extensive on-field demonstrations have been launched.

We have seen, and we are very excited about the performance of the product. On the other hand, a unique peptide technology platform for biologicals, another equally exciting opportunity, which is reflected globally, and the response of this expansion has been seen by huge demand by expanding channels and efforts and creating a new plane in the industry.

The pace to commercialize advanced molecules has increased in line with our investments in research and differentiated technologies from flow to vapor phase to biotechnology. Our long-term growth outlook remains intact with a focus on margin discipline, high quality of growth, and scaling platforms.

With this, now I would like to hand the discussion over to our Group CFO, Sanjay. Thank you, everyone.

Over to you, Sanjay. Go ahead, please.

Thank you, Mr. Singhal.

Good morning, everyone. Guys, I'll summarize the company's financial highlights for the quarter ended December 31st, 2025.

Q3 performance reflects the continued impact of global industry headwinds that we have been discussing with you in our previous calls. However, we believe the sector is nearing stabilization now and expect sequential improvement beginning Q4.

For Q3 FY26, we reported revenue of ₹13,757 million, which comes on the back of a high base of the same period last year. Despite global challenges, we know we have still delivered a growth of over a three-year CAGR for the nine-month period.

The moderation in agchem export is primarily volume-led, driven by slow demand and customer delivery schedules. Also to note that the nine-month period FY24 for the agchem export business, we grew by 22%.

Similarly, we grew in FY25 nine-month period by 9%. Going forward, we remain fully confident of the future of our agchem export business.

We have commercialized nine—five new molecules in agchem exports and four in domestic agri brands. The 10% growth in new products in agchem export demonstrates our de-risking strategy and focused approach to gaining new business in this tough environment.

Domestic agrochemical demand remains subdued due to high channel inventory, low commodity prices, delay in normalization of biological portfolio post-regulatory headwind, and specific impact from lower demand in a few target crops for PI. Our domestic business is supported by strong product portfolio and new product launches, which have offset the challenges faced on the ground.

We have launched three new herbicides, Alcor, Comet, Fixit, and one insecticide, Uranas, this year, with two more expected to be launched by close of FY26. We expect the domestic growth to be back on track from FY27 onwards.

We've also launched our direct-to-farmer mobile app, PM-Mitra Kisan, a one-stop farmer engagement solution offering crop advisory, product guidance, and loyalty benefits. This digital platform strengthens our connection with growers and drives scalable, tech-enabled growth.

Moving on to our pharma platform, it has been on a very strong foundation, increased revenue by 50% over nine months of the previous year, driven by deepening relationships with the biotech and the big pharma innovators. We have onboarded several new customers over the last 12 months, including several strategic accounts and big pharma.

Global biologicals continue to progress in line with a long-term roadmap, with ongoing investments in registrations, product development, and global market expansion. On other financial metrics, gross margin expanded to 59% during the quarter, supported by a favorable product mix and cost discipline.

Further, at EBITDA level, we've delivered a margin of 27% for a nine-month period, which remains resilient despite industry headwinds. During the quarter, net profit includes an exceptional income in our pharma business on account of a write-back of contingent consideration of INR 1,260 million, which has been partly offset by additional provisioning of retirement benefits as per new labor code to the tune of INR 209 million.

Our trade working capital in terms of days of sales has increased to 139 days and reflects current market conditions. We expect to improve this as market scenario normalizes in the coming quarters.

Our debt-free balance sheet position supported with net cash of ₹35 billion provides strong resilience and flexibility for strategic investments. While the operating environment remains cautious, we expect gradual recovery beginning Q4 FY26, with growth momentum building into FY27 as industry conditions stabilize and our new products ramp up.

With this, I conclude my opening remarks. I will now request the moderator to open the forum for Q&A.

Thank you.

Hi. Thank you for the opportunity.

First question is on the guidance. When you say that—

Better now?

Okay. Yeah.

Thank you. First question is on the guidance.

When you say growth resuming in fourth quarter, is it only a sequential growth that you're talking about, or you even expect a Y-o-Y growth? What this growth is really?

Is it a volume growth that you are alluding to, or you even expect a revenue growth or a value growth in the fourth quarter?

Yes, there will be a volume growth from beginning Q4 FY26. Yes, there'll be a sequential growth in Q4 over what we have seen in Q3.

As we build into FY27, we believe with all the efforts we have been putting, we should be on a growth momentum picking up then.

Volume growth in 4Q, is it also a Y-o-Y volume growth?

See, well, sitting now, we would target to have a volume growth. As I said, the momentum will start picking up from FY27 onwards.

Just to clarify, we already see the grace period. We see a good momentum of uptick activity starting to the quarter four.

Clearly, as we get into the year, the momentum is so The positive part is there's a positive movement already seen and witnessed. I think we should be in a good shape coming in the quarter.

Understood. Then when you say FY27, you are expecting the revenue growth returning to the company in that year.

If possible, can you also give more contours to it, whether you expect a gradual recovery in growth or you expect the growth to open up in a big way?

Yeah. I think we see the positivity of growth.

As I mentioned in my talk earlier, that the industry is still having an extended cycle of growth. Given the scenarios and as you must have seen in this year, there have been many headwinds, the geopolitical uncertainties, commodity prices, also given the challenge of India's regulatory framework on biologicals.

Some of these areas have created certain challenges, including the weather conditions. I think what we see that given that, the bottoming of the pit and positive shoots are already there.

We are positive to say, yes, we will start seeing this in '27.

Okay. Just to kind of continue on that point, because the kind of robust business that we have, right, we have visibility, a lot more visibility compared to the other kinds of businesses in the sector.

Are you noticing already a great deal of visibility from your customer side that you're getting optimistic in terms of a recovery in FY27? Or is it merely coming from some optimism that you have in mind?

No, no. I think, as some part of the business is more about what we have from the customer set.

At the same time, is there a adverse headwinds, like shift? The PI philosophy of partnership, that goes strong.

Even while we have what we've committed to with them, but we have to sit and optimize to handle the market situation, because you have to partner up to create value. We see the uptick in demand, but clearly, as I said, there's been a reset in the way the customers are thinking, the way they're looking at agile supply chains, given the challenges of this prolonged challenges that they've been seeing.

Clearly, given where we are, looking at what they feel, the operational aspects of these issues in the industry are getting cleaned up. The external factors still will have a role to play.

We don't know how reactions happen in the geopolitical scenarios, which could change. Clearly, there is a positivity from all quarters in terms of how we may see going forward.

Understood. Thank you.

That is helpful. The second question is we noticed that the gross margins continue to improve every quarter for you.

I think we delivered a 59% kind of a gross margins. Would you also give out a guidance on what kind of gross margins do you expect on a sustainable basis?

As you've seen, as always we guide, I think we continue to manage the great margin. On a quarter-to-quarter basis, it will be difficult to put that out.

As you very clearly would understand, that there are product mixes, there's value mixes, which come together. As we've given the guidance between 50 to 50 odd plus, 50 to 52 or 53%, we continue to keep that, and we continue to move with that.

We have been delivering quite good kind of a gross margins for last few quarters. What is this gap between what is your expectations on a sustainable basis and what you're delivering?

What is this gap attributed to? I really don't understand that side.

Gap of what? The gap of gross margin?

Gap in gross margin. Look,

I understood your question. See, the thing is, first of all, while we will aim to deliver more, but it is better to be because there will be a product mix gap between quarter on quarter.

On a yearly basis is when we can talk more with clarity with you. At the end of the day, whatever gross margin benefits we get, it helps us in investing of the planned investment what we have in the new businesses.

Therefore, it is better to track the EBITDA margin. Again, for the nine months, we are at a healthy 26, 27%, and we would still hold ourselves for the year what we started the year with, with 25 to 26%.

We believe that is where we should target to exit in this financial year. More, these things, once we have our budgeting exercise completed for FY27, we can give you more guidance for the next year thereafter.

Sure.

Thank you so much, and all the best. I'll get back in the queue.

Thank you.

Hi, sir. Thank you for the opportunity.

The first question I had was an extension to the earlier guidance question. Just going to fiscal '27, I know it's a bit early, but would it be possible to give some sense of you're expecting more like mid-single-digit or high-single-digit, any range if that's possible?

Also, whether it would be broad-based across the portfolio, or you expect certain parts of the portfolio contributing more towards that fiscal '27 recovery? That's the first question.

Let me put it, as we said, there is still the softness. I think we're definitely seeing recovery.

Now, different pockets, different place, clearly be too early to give a guidance of what numbers is actually seen. I think coming to the next quarter, as we always do over the decades, is when we give a guidance for the next financial year post the year data.

Yeah?

Sure, sir. Understood.

The second question with respect to the new products that you've been disclosing. I think for the nine months, you've mentioned that the new products have grown at about 10%, which given the first two quarters of the year, which saw a very, very strong growth, it seems to suggest that 3Q, that growth of the new portfolio seems to have slowed down.

Just wanted to get some color with respect to whether any specific reasons around that. If there was some impact of the US tariffs.

How should we think about that going forward into fiscal '27? Thank you.

At fundamental level, as I highlighted in my speech, that the key challenge is the commodity prices and the demand cycle, which is creating challenges, and the adverse weather. Obviously, the US policies have impacted the growers, which in turn has a consumption differentiation.

It is not the trade policies per se. I think that's creating one of the key challenges.

Going forward, I definitely see that could move into the positive direction. That is one.

A second important issue, as we see, for the new products, it takes a little time for development, as you can understand in the ag business, and I'm sure you know that well. It takes typically a decade plus to keep products.

The beauty about ag is products continue to grow for life. I think that's what the time cycle is.

The positivity is a mix of the new product portfolio, the percentage growth coming from that, and with time, if the industry switches, this could accelerate the growth rate for these new products.

Sure, sir. That's helpful.

I'll rejoin the queue, and all the very best.

Yeah. Good morning.

Thank you so much. Could you please just update us on the contract assets number on the balance sheet at the end of December, please?

Abhijit. This particular quarter, the contract assets are in the range of around 1,065 crores.

Yeah.

Got it. Compared to basically about a little under 900 crores last quarter.

In terms of the liquidation timeline for this line, I think we've said in the past that we expected to come down towards the end of this financial year. Any sense you could help us with regarding how we should expect the trajectory to shape up over here?

Yes. As yes, that's what we've given the guidance.

As and we look into past history, this is a typical cyclical approach with and no inventory beyond 3 to 6 months. Clearly, yes, at the end of the year, this will be coming down.

I think now within the next couple of quarters, it will further go lower. Because it's a mix of our asset utilization, capacity utilization, customer contracts, and the billing mechanisms work.

By year end, where should we expect this number to be, sir?

I can only give you guidance to say it'll be reduced, and it'll get there. To give a specific number will depend on how we shape things up in terms of customer shipments, time match, asset mixes which are going up.

Because that's really how it is. It's not a specific number that I can come to today.

All right. Then just on the gross margin guidance, just trying to understand.

In terms of this 50 to 52% trajectory that we expect, is that something we should expect in the relatively near future itself, say in fiscal '27, or for fiscal '27, what's the line of sight we have? Can we maintain the gross margins around these levels of 58,

59%? As we mentioned, we've given that guidance.

Our intention is to continuously obviously manage and maintain the gross margin. Clearly, as we will give a better guidance at the post of the year end.

Abhijit. Do you have—

I think I'm done. Thank you so much.

All the best.

Thanks for the opportunity. Sir, any update on the plant health care where we had acquired this almost 1 and 1/2 years back?

We were expecting some cross-selling of products from India, our own products, to the other geographies like where PHC has its presence in US, Brazil, Mexico. Where are we in that process, and where can we see some tangible benefits from the same?

Thank you.

Maybe Jagresh, you can take this question, please.

Yes, no, absolutely. Thank you for asking.

On plant health care part of the business, we have made tremendous progress this year. We are expanding our business in Brazil, US, Mexico, and European countries.

In Brazil this year, we have gone from last year two distributors to 33 distributors. We have more than 400 farmers who are right now using our product in their own field testing the product.

Similarly in Mexico, we have more than 28 distributors right now who are working with us. In US, we are setting up a distribution network for the entire Midwest.

Some of the world largest farmers from Brazil and Mexico, they are basically right now testing our products. They have been working with us.

We have also got some new product under registration. We launched two new products in Brazil, two in Mexico.

We've just got our disease control product approval in California. That makes the entire US, and California is the largest market for that product.

We are awaiting an approval for one of our nematode management product in US, which is expected sometime this month. All the trials which we are doing in the farmers field in Brazil, if the harvesting is just getting started, and what we are seeing is almost more than 80% win rate.

We are basically making good progress. In India, we got the plant health care product code approved.

We are looking at launching this product in next quarter.

Sure. That's helpful.

Second question on Pyoxanilicpro. Now that we have filed for the registration in Indian market, what are the timelines that we are looking at from commercialization in Indian market?

Any progress on probably having registrations in the global market? Thank you.

For sure. Thank you.

I think the progress is within this financial year, which should be achieved their registrations. That be the landmark in the Indian history and of a new innovation of Pyoxanilicpro in the next coming financial year.

On the other hand, yes, there are works of regulatory works which are going in other couple of geographies. We'll be filing for regulatory registrations in the coming year and opening as soon as we get regulatory approvals to launch the product at the global platform.

Sure. Thanks a lot for answering all the questions, and all the best, sir.

Sir, just on the pharma and the biologic business. Now if we look at the numbers, we are heavily investing in these businesses, and we are roughly at a 75, 80 crore quarterly EBITDA loss in these segments.

How should we think about these investments from a medium to longer term? Are we at the peak of this investment in these businesses?

Going ahead, the investment should move in line with our overall OpEx?

It's a very good question. See, yeah, first we need to understand why we're doing it.

If we understand that these are good cost. The investments what we are doing is going to be a long-term value creation for the organization.

That is where we are at. Now initially, we've got these businesses, we've incubated them, we've got the people now, and we have to make the right investments.

Unfortunately, all of it gets charged off to the P&L. Yes, it will take some time.

Like pharma is now getting onto a probably strong foundation. Biologicals, Jagresh just spoke.

Yes, currently, they are having P&L charge, and we'll have to bear it for some few quarters. Thereafter, we think as an organization, this will be future growth engines for us.

That's it.

The way I've put in one line, look at these as investments for the future and not as losses of present.

Got it. Sir, secondly, just on the CapEx side, we were working on two multi-purpose plants, and now we have expanded that to three multi-purpose plants.

We have also spoken about a non-GMP plant in India on the pharma side. The third plant is largely for the pharma business?

Is that a fair understanding?

No, as we're looking at certain other verticals, as I've mentioned earlier. The third plant will be servicing those verticals, which and the specialty electronic chemicals.

That's really where we are putting a footprint.

Any CapEx on the pharma intermediate plant that we are setting up in India?

Yes, we will be coming out with a plan and announcing that in the next quarter.

Oh. Sir.

Got it. Thank you so much.

Hi, sir. I know it's early, but could you provide any guidance on the CapEx plan for FY27?

Broadly, let me give you in line, is around 5, 600 crores. Obviously, once you get through the whole process, procedures after board approval, we'll give you proper guidance in next quarter.

Okay. You mentioned 500 to 600 crores, right?

I think that's where we are today.

Okay. Understood.

On the domestic biologicals registration process, any update where we are, what percentage of portfolio would be already registered?

If you look at the domestic biological portfolio, as you know in the beginning of the year, we've had certain turmoil in the industry. Those are getting sorted.

I believe in this quarter, those should be in the past. Clearly, certain other new products, as we've already mentioned, that products like a new peptide of our TRF half and half is already registered.

We're looking and evaluating about two to three new products in this segment. I think today we have a very robust, large-scale portfolio in biologicals.

We're making those investments to scale them out.

Okay. Just lastly, any sort of thought process on the use of cash on balance sheet, if there are any opportunities domestically or elsewhere?

How are you thinking about it?

If you look at the cash in the balance sheet, there will be investments. We're also looking, as we mentioned, on the new entities and technology platforms where we are investing.

Clearly, the company has the resource and the team which is always on the look out to look at what could be the synergistic in line to our strategies, which are knowledge-led capabilities of building a differentiated plane. That's really where we're focusing, and we'll continue to do so.

Okay. Just if I can add, would this largely be in agchem, or largely looking at outside of agchem?

In a lighter way, let me put it: if you have three children, we have to decide which suits the best opportunity, which school fits what's kid, right? We have to look at the opportunity.

We're looking to grow in every sector that we're playing in. Whichever opportunity comes and fits in well, we're going to put it there.

Sure. Understood.

Thanks, thanks a lot, sir.

Hi, sir. Thank you so much for the follow-up.

Just an extension of the previous participant's question. On the biological side, did you mention that the regulatory issues are now behind, and Q4 will potentially be a normal quarter?

No. Yes, in the Indian market, if you remember, they're now getting into approval systems.

That's why I'm saying it's behind. Maybe next year, we'll see those pieces come up.

Q4 is when maybe expect industry has taken up front, and the government has taken initiatives to resolve that.

Sure, sir. Understood.

Would it just be possible to share what is the biologicals contribution in fiscal '26 so far?

Should be around 20-odd percent.

Sir. Thank you.

Thank you very much.

Hi, sir. Thank you for taking my question.

My question is on the write-back of the contingent consideration that we have taken off the PI Health Sciences. How should one view this: does the original performance thesis of this particular equation remains intact, or there is going to be any change in the expectations?

No, no, absolutely. There is no change in the strategy.

There is no impact of it. That's why we renegotiated contingent consideration, which was lying in our books.

The business is on a strong footing. We have our now experienced, in-house global business development team.

We're looking forward for our pharma business to scale up and build one of the best global CRDMO platform.

Sure. Thank you, sir.

Hi. My question is on the plant health care business.

Can you just share some broader thoughts on how should one think about the overall opportunity and the trajectory of this segment? Specifically on Saori and Teco, given that we have been looking to ramp up these products, any indicative timelines and peak sales number that we could look at from these products?

No, absolutely. See, you have to look at it, overall in the industry, biological business globally has been growing in double digit.

Globally, the biological business is in the range of around $10 billion today, and this has been continuously growing over 10%. That's the segment basically we are participating, we are bringing in some of our key product.

The difference what we see is, overall biological business globally is a fairly crowded space. We have some unique product, and these technologies no one has.

We are the first company in the world who has commercialized peptides in agriculture. Peptides have been used in pharma, etcetera, in the past, but we are the first company who has commercialized in agriculture.

We see this differentiation driving significant growth. Product like Saori, Teco, these are the plant protection product.

Within biologicals, the fastest growing segment today is a biocontrol segment because of the challenges which are coming in. Society is looking at how can they basically bring in the product which have a lesser impact overall.

That's what is driving the growth. Also farmers are looking at those kind of options which can help their crop to grow better.

We actually see a significant growth opportunities as we expand this portfolio.

Okay. Sir, secondly is we had made a comment in the presentation that we aim at becoming among the top five CRDMOs on the pharma side.

Any timelines, or how should one think about the investments in this segment going ahead?

As this is a long-gestation based business, capable of building. I can just give you a parallel example: it took about a decade to build PI contract manufacturing, and then you have what the hockey stick effect.

I think we're right now in the phase of the hockey, and we expect, yes, the scale would take time if you want to differentiate and have sustainability. I think we should look in the next couple of years where we've put the right basis, and the numbers will start ticking.

Okay. Thank you so much.

Hi, sir. Thank you for taking my question.

I just firstly wanted to understand the CSM business that has struggled this quarter. When do you expect the CSM business to kind of show a Y-o-Y growth?

Maybe it is six months down the line or nine months down the line, when do you expect it?

Let me first calibrate. It's not struggling, number one.

It was line with expectation of what we see. Clearly, as we've indicated, that coming to quarter, you're already seeing the positive trend coming for and the fourth quarter itself to start showing certain good shoots.

We're pretty confident that it'll work out.

Did you mention that the fourth quarter onwards you will have a CSM growth again? Is that what you said?

Yeah.

Okay. When do we expect this pharma contributions to be fairly positive for the company?

Because I think our targets to go EBITDA positive have been pushed out. I know you've been trying a lot, but what's the sense there?

Let me put it, we definitely be putting all the efforts. The idea is the EBITDA positivity is something dependent on the market and the opportunity.

Clearly, we don't want to lose the focus on what the strategy differentiator will be just because the markets are tricky. I think we have the hold in the building capability.

We're taking more aggressive calls and investing, hence you may see the EBITDA challenges. I do believe that now when the foundations are set, it takes a longer gestation to turn this business up.

Clearly, I see in the next couple of years, it should start moving once we hit the top 4, 500-crore top lines.

Understood. Lastly, if I may, it's been some quarters since we have stopped giving out our order book number.

Has the order book declined, or what is it? What's the status of it?

Can you just help us with that?

No, no, we have been sharing order book. I think last time also we did mention that.

As of this quarter, the way we look at it, we are in the range of $1.2, 1.3 billion of order book.

Understood. Thank you for patiently answering my question.

Wish you all the best, sir. Thank you so much.

Thank you.

Hi. Just one question, sir.

If you can touch upon on the electronics chemical, what exactly are we doing here from a end-user point of view, and how big this platform can be for you in next 5 years and beyond?

Yeah. In terms of electronic chemicals, I think there is a good traction.

New customers have been added, and the couple of products have gone into the commercialization. We expect that four to five molecules will be going for commercialization this year.

There is a good amount of the projects with the new customers getting acquired. I see a good amount of traction going forward in the coming years in electronic chemicals space.

Can you touch upon the end-user, which specific area space these molecules are targeting?

They are in the semiconductor. They are more in the semiconductor and the high-end application of electronics to keep that customer—

Okay. Are these only for domestic market or for export as well?

They only work in a global innovator market. Simple.

Thank you so much, sir. All the best.

Hi, sir. Good morning, and thanks for giving this opportunity.

Sir, my first question is have you seen some kind of a price realization impact in some of our key product? I just wanted to understand how the pricing or the realization is also behaving when you are anticipating revival in the growth.

Let me put it this way: price realization has overall in the industry shrunk, as you can see. Clearly, because also the costs of raw material come down.

The company's strategic focus is to continue to manage its gross margins. While we continue to look at optimizing to be competitive on the price front to capture value and volume both at a balanced state at a balanced level.

That'll be the approach, and that's the part of the cyclical industry like ag.

Is it fair to assume that some kind of impact is also seen in our portfolio in terms of some compression in the price realization?

Portfolio mix is always have a challenge very clearly. That's a cycle by cycle, different product, different places.

The point of the management focus of the company is to see how we can demand the gross margins. Portfolio is one strategy.

Technology is the other pillar of strategy. The third is the market to create value.

Those are three strategies, and that's what creates gross margins.

Just to extend this particular thing, when there is a price compression, the thing what we often discuss with the client is some pass-through or some. Am

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Sir?

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Hello? Yes.

Yeah.

My extension to the question was, what's the recourse in this particular thing? Is that only recourse is that we try to do lot of some backward integration and that's how I try to be better in that particular product when there is a price compression happening for that particular product?

Or is there a way of finding out

Yeah. Your background noise is too much.

Secondly, I didn't get your question. Can we get that

Maybe I'll just come back. I'll just fix something, and I'll come back with my second question, sir.

Hi. Thanks for the opportunity.

Sir, I hope you guys can hear me.

We can hear you, Aditya.

Yeah. Sir, if you can give me some sense that how has been our penetration in some of the new clients?

Clearly, over the last four, five years, we would have added multiple clients in different geographies. Is there a line of sight where we can see that in the next couple of years, we should see a meaningful ramp-up in some of the new relationship we have started?

Which business area are we talking this about?

CSM. This is I think the elephant in the room.

In the ag business, we cover all the players already. It's expanding new businesses.

If you're talking about the electronic and the new verticals, that's where we are basically focusing on companies. We've got five new customers in the areas of electronic chemicals, probably Japan, and in certain European customers for high-end specialty technology development products.

Yeah. Continuing with this, Mayank, in the agchem business, as we had a strong relationship with Japanese innovators, is there a line of sight where we can say that we are having meaningful contribution coming from say European, American innovators in the next couple of years based on our existing business discussions with them?

I'm not sure because we've worked with the European customers and three big boys for the at least last 20 years. We've been also their pioneering partners.

Those have continued to have dialogue, new pipelines coming, new evaluations happen, and we're developing them. Also the American companies, which you would know of.

Sure. Fair enough.

My second question, Sanjay, if you can throw some light, there has been a increase in the working capital quite sharply, almost from 68 days to 139 days Y-o-Y. Could you please explain, and how we should expect the intensity of working capital coming down?

Aditya, this is a reflection of the global scenario. We had one of the lowest working capital days across the industry.

Now we have to accommodate the needs of our partners. In those lines is where our net working capital days have gone up, still much better than the industry benchmark and norms.

Having said that, I will not be able to give you exact numbers, Aditya, right now, but we expect to improve this as the market scenarios normalize in the coming quarters.

That's all from my side. I'll fall back in queue.

Thank you.

Thanks, Aditya.

Thank you. Good morning, and thanks for the opportunity.

Sir, I have only one question. I would like to understand your thoughts on the evolving landscape amongst global ag majors.

We have seen some bit of corporate actions happening in some of the large MNC ag innovators. Given this scenario, how do you see the development on new technologies and patented products coming up, especially regards to their R&D spend?

What would be our stance and capability to have a first-mover advantage within these patented technologies going ahead so that we can garner a good amount of product portfolio and scale-up abilities going ahead? If you could have a 3 to 5 years' view on this developing and evolving scenario, I would like to hear more from you, sir.

Thank you.

Thanks. I think that's a very good question, and let me put this across very well: every challenge has an opportunity, and I think PI is the only company which is geared with its philosophy of partnership and technology as an innovator, which creates an opportunity just not in manufacturing, but also in building new entities together.

I think that's the PI value proposition. If you look at the history of PI, we started as partners with licensing domestic business and scaling that up as partnership for innovation, the PI way.

The next was partnership in innovation manufacturing. Now we were the company to lead the path in the agchem sector for partnering for innovation for new product development.

Not only product development, but we opened a few more engines. We've taken the engines of biologicals, where we're creating innovative platforms and partnerships.

The partnership platform and PI innovation are one of the drivers of which the opportunity in challenging environments gives us a differentiator to partner even deeper in the relationship, from markets to research.

Sure, sir. Thank you.

Thanks, and all the best.

Thank you, everybody, for joining us on this call. Also, I would like to highlight, today we celebrate our Founder's Day.

It's an exciting time and day for all of us. Thank you for being here.

Bye.