The domestic brokerage house, JM Financial, has cut the target price for PI Industries by 3.5% to Rs 3,465 from Rs 3,590. The ‘Reduce’ remained unchanged on the stock. Also, the EPS estimates were slashed by 4% for FY27-28. This came after Kumiai, its Japanese partner, guided a significant decline in pyroxasulfone sales in its FY26 (November 2025 to October 2026).
Kumiai- PI Industries JV – Why is lower guidance a worry?
Before we move ahead, let’s look at why this guidance matters. In June 2017, PI Industries entered into an agreement with Kumiai Chemical, a Japanese firm that manufactures chemicals. They set up a 50:50 Joint Venture company named PI Kumiai in India. Analysts track the changes in the revenue or sales guidance for key products, such as Pyroxasulfone (another Kumiai-developed molecule) by Kumiai Chemical, as they can directly impact PI Industries.
JM Financial on PI Industries: The Kumiai outlook a worry?
“Over the last 2 years, Kumiai has delivered better pyroxasulfone numbers than its forecast. Even if the actual FY26 performance is better than the forecast, there isn’t likely to be meaningful growth in pyroxasulfone sales,” said JM Financial.
Further, Kumiai saw muted growth in pyroxasulfone sales over FY23-25 despite no generic registrations yet in the US. Moreover, by September 2025, PI Industries had invoiced certain shipments (likely pyroxasulfone) worth Rs 850 crore, which are yet to be delivered to the customer. Given the few-month lag between PI’s supplies and Kumiai’s sales, this backlog is likely to meet a part of Kumiai’s FY26 demand and could limit incremental orders.
This led JM Financial to conclude that PI Industries needs a major push from its ex-Pyroxasulfone business in FY27.
PI Industries stock performance
The share price of PI Industries has fallen by over 4% in the last five trading sessions. The stock has declined 8.5% in the past one month and 22% over the last six months. PI Industries has erased 18% of investors’ wealth over the previous one year.