Ladies and gentlemen, good day and welcome to PI Industries Ltd. Q1 FY 2026 Earnings Conference Call. As a reminder, all participant names 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 email an operator by pressing star then zero on the touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Siddharth from CDR India. Thank you and over to you.
Thank you, Avirat. Good afternoon, everyone, and thank you for joining us on PI Industries Q1 FY 2026 Earnings Conference Call. Today, we are joined by senior members of the management team, including Mr. Mayank Singhal, Executive Vice Chairman and Managing Director; Rajnish Sarna, Joint Managing Director; Mr. Sanjay Agarwal, Group Chief Financial Officer; Dr. Atul Gupta, CEO, CSM business; Mr. Prashant Hegde, CEO, AgChem Brands; and Dr. Ramesh Subramanian, Global CEO, PI Health Sciences. We will begin the call with key perspectives from Mr. Singhal, following which we will have Mr. Agarwal sharing his views on the company's financial performance. Thereafter, the forum shall be open for a question and answer session. Before we begin, I would like to underline that present statements made on today's call will be forward-looking in nature.
A disclaimer to this effect has been included in the investor presentation that has been shared with you earlier and is also available on the stock exchange website. I would now like to request Mr. Singhal to share his perspectives with you. Thank you and over to you.
Yes, thank you, and good afternoon to everyone. I just also wanted to add that we also have on the call Professor Sam, Mr. Jagresh Rana, a Global CEO of Biologicals, who will also join the call. Now let me begin by sharing my views on the business environment and the role of PI as a leader, as a technology solution provider, and as a global partner in the AgChem space. The global AgChem industry is navigating through a dynamic market environment and landscape, having witnessed an overall decline over the last two years. Low commodity prices, farm income, and high interest rates in extreme weather events, and uncertainty related to tariffs over the last six months have impacted the market sentiment. On the positive side, there's a gradual declining of inventories in most of the markets and a popular trend on global innovators pushing the China Plus One strategy.
On the negative side, we are seeing large scale global monsoons, part of the growing trends, and major costs. The unrest, regulatory challenges, and biological fertilizer stock holds have impacted the growth momentum in sheltering of the Kharif season. Beyond the near term, development of advanced crop care solutions remain the global challenge. Given the underlying requirements for higher and more reliable crop yields and the shrinking arable land, weather variability, and growing population, innovators are launching new technological initiatives, including AI-based platforms from research to farm. The initiatives are aimed at improving productivity, efficiency, farm output, and meeting regulatory compliances. Concurrently, the demand of biologicals for integrated crop health management has increased given the challenges of climate change.
In the current landscape, the global companies continue to elevate their strategic partnerships across the value chains in pursuit of cost optimization and build resilient business models amidst the regulatory environmental challenges. I now move on to a business highlight for Q1 FY 2026 . Our performance is broadly in line with the edge-to-weight FY 2026 plans. For the AgChem 's export side, we have seen a decline that is in line with the customer delivery schedule to balance the inventory levels. As explained before, we are building fast with new stalls on the financial year 2026 plan. However, it is important to highlight that the growth in new products have commercialized in the last few years and registered a decent 46% growth year- on- year. We are expecting to resume the acceleration of supply in Q2. We would very much like 6-7 new products and molecules in the remaining quarter.
Our electronic and specialty chemical area has also been intact and in form. Now, on the domestic side, we have seen a growth of 6% year- on- year for Q1 FY 2026 , which could have been much higher in terms of regulatory disruptions, but not in the biological space, given PI's place in that arena. Given our advanced product mix and crop solution-based approach, the momentum has sustained, and we've introduced two new brands in Q1, scheduling an introduction of three new products in the year. Our development pipeline comprises 20 + new products, and there are various phases of development and regulatory registration. Now, coming to farm. During the quarter, our farmer business has sold at an 186% year- on- year growth in revenues. We are seeing good traction in the new business inquiry with aggressive investment in business development.
Our efforts to establish an integrated CRDMO platform for delivering wildflower solutions by leveraging a combination of high quality assets, wildflower processes, solutions ranging with no backward knowledge, and business development strategies led by strong leadership have continued to shape and show some early bloom. We are carrying a plan of bridge and additions to the assets across various locations to support the path of strategic growth. With the acquisition now coming to the biological space, with the acquisition of PI Health Sciences, PI is taking a significant step in scaling our biological business globally and bringing innovative, sustainable solutions to the farmers across. Proprietary technologies, including PREtec and Harpin, which help in withstanding disease and environmental stress leading to high yields and better financial returns for the global grower.
We are intensifying our further R&D efforts back on the platform to integrate solutions with a focus for the markets of U.S., Brazil, Mexico, and India, and partnering across with others. As one of the key creation milestones, which is now coming, I am pleased to share , we have filed the first registration of an Indian innovation to be discovered out of India. PIOXANILIPROLE , a significant breakthrough of the innovation journey taken away by PI over a decade, is now showing its early fruits. We're happy to further say there are other products in the pipeline at different stages of development in research. We continue to tackle growth opportunities in the various arenas of health sciences and specialty chemicals, marking our transition from agri-sciences company to a life-sciences company.
Each of these segments and growth engines has significant potential to expand and strengthen our position at a global level. We are continuing our investment in these growth engines to ensure we pave and lay the foundations for the next level of global growth in the coming years. Our legislation, in terms of our outlook for the global industry, is still barking through a startup plan, and an ongoing U.S. startup drama is unfolding every day. We remain cautious and optimistic about reimagining the growth of momentum in excess. I would highlight certain initiatives that we are working to step further strengthen what we see at outlook. CSM exports use the introduction of new technology to be able to compete at the global platform. We are investing in technology-based augmentation in our distribution business in order to drive customer centricity and efficiency.
Continue to invest in newer acquired businesses to scale up drive to bring about a more rounded growth. Implementing business process re-engineerings like SAP HANA, global supply chain integration, strategic synergies. Further, not only that, based on our growth expectations, we shall continue to invest about INR 700 - 800 crore in the year. With this, I would now like to hand over the discussion to our Group Chief Financial Officer, Sanjay. Thank you very much, and Sanjay, over to you.
Thank you, Mr. Singhal. Good afternoon, everyone. I'll summarize today's company's financial highlights for the quarter ended June 30th, 2025. Please note that all the comparisons are on a year-on-year basis and recorded to be consolidated performance of the company. Q1 unfolded against the backdrop of macroeconomic headwinds and geopolitical uncertainty, which continue to influence the market sentiment. We anticipated these headwinds in our annual plan, which is edge-to-weighted, and therefore the results are broadly in line with the business plan. To share the performance highlights during quarter one FY 2026, we reported revenue of INR 19,005 million, a decline of 8% over the same period of last year, and a sequential growth of 7%. On a three-year CAGR basis, the growth in Q1 is 7%, and we had registered a growth of 8% in quarter one FY 2025 and 24% in quarter one FY 2024, making it a high grade.
Our domestic business grew by 6% backed by Kharif season, and we remain buoyant based on favorable monsoon forecasts and strong product portfolio, which we have. However, there was a decline in the biologicals segment due to regulatory changes. Our pharma platform rebounded, registering revenue growth of 187% over the previous year, driven by deepening relationships with biotech and big pharma innovators. Our development trend into creating fully integrated pharma CRDMO platform has helped to create an accelerated pathway for strong future growth. Q1 FY 2026 also includes the financials of our global biological business, which was acquired in August 2024. The business has been performing in line with the business plan, with many innovative products in the pipeline.
Due to the favorable product mix and cost optimization measures, our gross margin for the quarter has expanded to 57.4% and increased by 5.7%, and our EBITDA margin remains resilient at 27.5% for the quarter. We expect the ETR to be in the range of 22% - 23% for the next two to three years. Further, the trade working capital, in terms of days of sales, has increased to 91 days from 73 days in March 2025, while better inventory management has kept the inventory base almost at the same level of last year. Our healthy performance, leading to stable cash flow, provides us the flexibility to continue with our CSM plan, allocating capital towards our future growth engines, which we have done in PI Health Sciences, a pharma business, PHC, a global biological franchise, and Discovery R&D. Our balance sheet further strengthened during the quarter.
Net worth increased to INR 1,603 million and a healthy net cash balance of INR 41,554 million. Given our leadership and strong partnership with global AgChem companies, our innovation pipeline, we expect accelerated H2 to drive a single-digit revenue growth for FY 2026 with a sustained EBITDA margin. With this, I conclude my opening remarks. I will now request the moderator to open the forum for Q&A. Thank you.
Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Aditya Jhawar from Investec. Please go ahead.
Yeah, hi. Thanks for the opportunity. It would be great if you can give us some sense on the applicability of tariffs on our key products in the U.S., as well as other products. How do we think about it, and what is our interaction with customers suggesting? Is it completely exempted on our products, or the customers will need to absorb some? Thank you on that. That's the first question.
Right now, in the given scenario, there is no priority on the implication of tariff, but not at the present, it's not applicable. As you know, the tariff scenario is quite a confused one. For the present, we don't see any challenges.
Okay. My second question is, any update on our registration of one of our key products in Brazil, Pyro?
Let me answer. Number one, we are not responsible. That's a scummier product. We did the contract management. Supposed to be very fair, but already it's been registered in Brazil from what my understanding is from public.
Yeah, our supplies are to a Brazilian market.
We supply to a customer who will, in turn, may supply to Brazil .
Fair enough, fair enough. Next question, when can we expect normalization of biological sales in India? Yeah.
That's an interesting question. As you know, this is a fact which is still in the hand of the government and the court. We would have wanted it to happen as of yesterday, but obviously, it's going to take some time.
The final question, to give a filler to our domestic business, are we also evaluating some inorganic opportunities in the Indian market?
As you know, in my statement, we are looking at many inorganic opportunities in the various parts of the business segment, and definitely one of the domestic segments.
Okay, that's it. I'll fall back in queue. Thank you so much, Mayank.
Thank you.
Thank you.
The next question is from the line of Abhijit Akella from Kotak Institutional Equities. Please go ahead.
Thank you so much. On the gross margins, they've come in very strong at about 57%. I know you mentioned the product mix as well as the cost optimization project. Last quarter, I believe we had guided to gross margins in the range of only 50% - 52%. In light of this performance for the first quarter, would you like to update that guidance range? Should we expect to stay closer to these levels?
We will stick to our guidelines, and yes, like we mentioned, it is due to the product mix and some of the efficiencies that we'll have operating teams.
And these product mix vary quarter-to-quarter . So, the margin profile will also vary from quarter-to-quarter.
Okay. Okay. So 50 - 52% gross margins and 25%- 27% EBITDA margins. Is that still the range to work with?
Yes.
Okay. Thank you. Just a couple of quick bookkeeping questions, if I may. Just on the order book number, if it's possible to share that at the end of this quarter, and also the revenues from Plant Health Care for the quarter, please. Thank you so much.
I think the revenue on the order book is about $1.2 billion. In regards to the Plant Health Care, the revenue is above.
You mean they said it's around $8 million - $10 million. Possible to share it for the quarter?
Yeah, I think it's around $3 million - $4 million in this particular.
Okay. Is this included within the CSM business?
No, no, separate vertical.
Here's the export business for.
All right. Thank you so much, and I'll come back in queue for anymore.
Thank you. The next question is from the line of Saurabh Jain from HSBC. Please go ahead.
Yeah, thank you for the opportunity. My question is on the domestic business. I'm just curious if you have seen the details on why they receive this kind of increase in the quarter. Is it more to do with the push that you did in the market and also making the risk of the shares returning to Q2?
Okay, if I may get your question right, which I'm maybe going to, the question is that why has there been an increase in the?
Pay receivables in the quarter.
Pay receivables.
Yeah. There are inventories in the market for the industry. As Mayank earlier explained, fertilizer shortages resulted in a lot of money being basically diverted to secure the fertilizer. Hence, we have seen a little bit of slowness in terms of agrochemical, especially in terms of selection income. That is what is reflecting on the receivables.
Okay. Would you also assume a higher risk of shares returns coming into Q2?
As of now, our quality of sale is looking good. We don't see any higher returns compared to whatever we have been tracking from last one year. It is in line, so we don't see any major deviations in terms of our returns.
Okay. Understood.
Just to add to Prashant, while Prashant spoke about the agri domestic business, the number when we look at it even from March 2025 and what we are seeing now in June 2025, they are broadly in line. There has been no major increase in the receivables. As you asked, yes, the receivables, what we have, there is no concern at all for us in terms of the community. We are very much in line with the current business environment.
I think the point also to emphasize is the receivables from the export segment are, which are used in line.
Okay. The question I had was on the pharma business. Just from the feeling, we reported in the current quarter that the gross margin for pharma business in the shut is about 52%. To look at the same presentation of last year, it was reported at 42%. Where am I missing?
No, sir, you're right. The numbers of last year were 42. There was a classification thing which was done, and they told the numbers broadly are the same at 52% for the last year and this year.
Okay. I call it 52 versus 55. That's okay. Do you also want to make a comment on your guidance for your pharma business? Because previous quarter, you mentioned you know 75% revenue growth with improved margins. How would you see it now after this monthly performance?
What are your reflections on the revenue growth or the margins?
No. In the previous quarter, you mentioned that you were expecting to achieve 75% revenue growth in FY 2026 in your pharma business with improved margins.
Yeah, sir, we are working in line with that guideline.
Okay. Sure. Thank you. I'll get back in the queue.
Thank you. The next question is from the line of Naushad Chaudhary from Aditya Birla Mutual Fund. Please go ahead.
Yeah, hi. Thank you for taking the question. Two, three clarifications. First, on the biologicals regulatory issue, registration requirements. Post, let's assume in the next one, two quarters, if things get settled, how the industry shape would look like versus what it is today? Can it consolidate? Can it benefit to players like you? How do you see post issue gets resolved?
Looks like I didn't get the question. Are you asking that if issues get resolved, would the industry get consolidated?
Yes.
I think I don't think I would be able to give that answer to be certain what the industry does. Given the fact that the company is shut down due to certain changes, in my view, that will only open probably the people to go back to business. That's a good issue. Consolidation is not the key.
I think it is also correlating very positively in the call in the last couple of minutes. I think investors expect that this issue will get resolved in the next very month or so.
You would expect that, again, as you would have all seen in the past, biological is the key agenda of the government to create balanced, equal environment for agriculture and also one of Prime Minister's more critical driving factors. We've also given the company the spirit to say you should invest in biological. I'm pretty sure we'll see the proprietary results at every level.
What is the percentage conservation currently from this piece of business? Is it completely zero for now or the ongoing quarter?
Yes, because it is, here's a shared like shot of star. It's really zero, and approximately we have 20+% revenue coming from this segment.
20% of the domestic revenue. Second, what is the status of our 2 MPPs, which is in virtual progress, and by when this should be operational and the ramp-up expectation?
Ramp-up would start by its first the last quarter of this year, and the others would probably get into the first and second quarter of next year.
Ramp-up plan?
Ramp-up is a 3-4 year process.
Okay. Last, on the U.S. studies, in your commentary, you mentioned it is creating uncertainty plus an opportunity as well. On the opportunity side, if you can elaborate what you?
I just said uncertainty because opportunity would be if it settles.
All right. Thank you so much, all the best.
Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Equities. Please go ahead.
Good afternoon, and thank you very much. If you look at the biological segments, probably where would the margin say once you scale up to a certain critical mass, it be somewhere close to the CSM margin or slightly higher or lower? Can you give us some sense of that? What are the kind of price we can expect, say, in three to four years' time?
Let me put it this way. Biologicals do have a much better margin than the chemical sector. Here, let me also make it very clear. Biological is a long journey. It needs investments in developing the products to a different mindset, to share the benefit and the mindset of the pharma. It is a balancing equation. Clearly, yes, in four or five years, I believe this should be giving a better margin than the other businesses of the companies. Therefore, it's called futuristic in our minds.
Okay. In terms of the new molecule, your launch, PIOXANILIPROLE, is it possible to give us some sense in terms of the different crops and what are the kind of target market size you can expect, say, over the next three to four years? What is the supply chain plan in terms of raw material, intermediate procurement? How is that going?
I think that focus on the front end of the market typically where we say this is the best segment, you'll get the doctorate best. There's a pretty decent size opportunity with the best in multiple crops, specifically in the row crops is where the area of focus in here. We are in stages of development and evaluation at the moment to look at the segment.
It's Prashant, Yeah. It's effectively on important row crops, as I've mentioned, sugarcane, rice, soybeans, and a few vegetable crops also. That includes tomatoes.
Okay. Is it possible to give us the cost of development? Is there any further development expenditure required for selling the crop?
That would not be possible. Thank you.
Okay. One last thought on Jivagro vertical. This year, the last two years, actually, the revenues are declining. How much is the Jivagro revenue in this quarter, and how do you expect that vertical to perform in your domestic portfolio this year and next year?
Jivagro is contributing, again, roughly around anywhere between 17% - 20% in terms of our domestic revenue. We have completely changed our portfolio in Jivagro. Earlier, it was mainly a generic product. Now we have more specialty products, which are specific for horticultural crops. It is shaping as per our expectations. It is basically, we are treating this as a specialty division, and we continue to do so.
Okay. One last thought on the pharma segment. In terms of the overhead, you reported INR 839 million in the intersegment adjustment. In terms of the ramp-up of the business, where do you expect the overhead to settle on an annualized one day? What is the intersegment adjustment? Are you assuming in the segment without seeing the BSE filing ?
Sorry, your question?
Yeah. Broadly, the pharma overhead booking scheme is in line with the growth plans we have. On a run rate basis, yes, we can take this as a base. It has higher developing spend currently at this point of time. On a 12- 18-month period, yes, we would look at breaking the EBITDA situation in between.
What is the intersegment adjustment, which you've shown because the losses are higher if you look at the BSE filing compared to what you've shown in the presentation? What are the intersegment adjustments in the segment?
No, that is only between the corporate expenses which get allocated between the two lines of businesses, agri-chemical and pharma.
Okay. The business loss, should we go by what is reported in the BSE filing? Is that the loss?
Yes, that is right.
Okay. Fair enough. Thank you, I will join the queue.
Thank you. The next question is from the line of Rohit Nagaraj from B&K Securities. Please go ahead.
Thanks for the opportunity. First question is in terms of our guidance. Given that the first quarter has been relatively muted and if we were to get to maybe middle single-digit growth for FY 2026, it has to grow by about 19% for the rest of the year. What gives us confidence given that we have also kind of just held out in terms of advent in domestic channel inventory plus the biological ratio? Is it backed by certain form orders on the CSM side? What is our thought process on this? Thank you.
Very clearly, as you see, there is a guidance well given of the numbers that we have. Obviously, it has been backed up by certain understandings with the customers on some of our on the CSM side. Domestic business, we were looking for a more aggressive plan, but we would see in the biological shape of farms, we should be able to still somehow get there. If it doesn't, then yes, it could pull a few things down to be fair. The other segment that we've invested in, we are seeing as per plan running right now. I think we would still maintain that guideline. As I've also mentioned in my speech earlier, there are headwinds, ranked tailwinds, and this whole dynamic world, whether it is tariffs or whether it is the hydroclimatic situation.
Hopefully, we believe that at least on the other hand of the corporate side that we said would happen, which could drive the balance to happen. We still remain conservatively positive to maintain our guidelines if I was to put it very straight.
Thank you, sir. Just second question on the PIOXANILIPROLE role. In terms of commercialization, what are the timelines that we are looking at given that it's finding good results in phase III trials? In terms of the marketing on a global scale, what are our thoughts currently? How are we going to go ahead with this? Thank you.
I think it's fairly enough. Come between business model approaches is partnering for innovation. If you look at PI Industries, we started the business of bringing innovative products as a pioneer in India. We created the next business way of pioneering of bringing in contract manufacturing for patient-based products and commercializing the global trade to support this current market. Now we are getting into the phase of creating new NCEs, and we will be looking for partners across the global trade to see and talk to advanced talks. In certain cases, in certain geographies, we are looking to talk with certain execution partners at a global level that you have to think of the rest of the world. Given the India context, obviously, we will leverage our near-home capabilities of being able to put innovation out into the market. That's really the approach we're taking at a higher level.
In terms of commercialization timeline?
We have filed for the duration of filing for now for India. Even when you look at a certain time in other geographies, with our partners in time, I think we would see that product come to life maybe in a two, two and a half years' time.
Thank you so much, sir, and all the best.
Thank you. The next question is from the line of Sumant Kumar from Motilal Oswal. Please go ahead.
Yes, sir. In CSM, we are going to launch 8% - 10% in this year in FY 2026. Earlier, we have seen the momentum was 50% of this. How are we going to plan for CSM, and how is the growth momentum in the coming FY 2027-FY 2028 considering the product launch is going to escalate?
As you know, the product launch is going to escalate. That gives us a little confidence. The long-term story looks good. The short term, as you know, the start of a product is minuscule, but they scale up. Typically, in the ad world, products continue to scale up for 10 - 15 years from our work. On the other hand, other segments which we put here, which continue to contain the product, R&D, specialty or high-end technology chemistry using specialized applications like electronics and others. To also strengthen the push force, given that we've PI technological capability for our control or manufacturing forward with chemistry and product controls. That's the other opportunity that is significantly unique to PI.
What is the target and calculated guidance for FY 2026?
You'll be around INR 70 -INR 80 crore in book financial year, and that could be around 22% - 23%.
Okay. Okay. Thank you, sir.
Thank you. The next question is from the line of Navid Virani from Bastion Research. Please go ahead.
Hello. I'm available?
Yes, you can hear me.
Thank you for the opportunity. The first one was on the pharma business. We mentioned in the presentation that we are in the process of building our relationships with biotech and big pharma players. This is a two-part question. Can you share some progress for us to understand better where are we on this journey? That's one. Secondly, is our strong, you know, experience and, you know, system helping in CSM helping us to hold CSM faster in the pharma division?
Sorry, I didn't get the second part of the question.
The second part was, sir, you already have a very strong name in agri CSM, right? Is that helping us win the pharma business slightly faster than that not being the case?
Obviously, that would have a credible leverage. In terms of what is being done in terms of developing the business at a higher level, Ramesh, maybe you can come in and explain.
Yes, sir. I'll take it up. Thanks, Mayank. On the first piece, I think we stated sometime last year that our goal is to bring in 3-4 large pharma clients. We've been on a journey to get there. We've already onboarded two large pharma clients, and the trends are that by the end of the year, we'll have two more. I'm hoping to get to that 3-4 large pharma clients, which will serve as a good base as we continue to grow. Pharma is sort of immune towards any cash challenges that biotechs may have that provide you with stability. That's the goal. The biotech industry is going through some challenges, but we continue to grow our biotech portfolio. That's an answer to your first question. The second one, yes, it definitely helps.
Not just in terms of credibility and name, but also, at the end of the day, it's a contract manufacturing business. There are a lot of technologies. The way we look at things is that we focus on making the molecule, right? The molecule can impact plant cells, or it can impact animal cells, or it can impact human health. The focus of PI as a whole is to make the molecule in the most elegant, efficient, and cost-effective manner. The technologies that we've put in, the experience we have in the CSM business, both in terms of R&D and manufacturing, that translates to making the molecule in the best way, definitely helps us when it comes to the pharma business.
Perfect. Thank you for that very clear answer. Next up, I wanted to understand, we have also mentioned that we have commercialized 15 molecules over the last three years, right? We are planning to scale it up as well in this year. Can you help us understand, like the top three, four molecules, what is the kind of opportunity drive, you know, we are seeing that can drive growth going forward?
Let me answer that. You see, obviously, if you say number, but getting into specific molecules and saying what are the opportunity side, you would at least say these are closely held strategies of large companies, and we are bound by certain confidentiality to be able to express what they are, what they do. At another higher level, given the historical credibility of what we've been able to do, clearly, we see a couple of them who are in the mid-second items, and I see that in the next couple of, which is four years, they will give us a substantial balancing act.
Just one last question. Since I've been touching PI for quite a good time now, and I've been listening to your commentary saying that we were wanting to diversify in categories like electronic chemicals. I think you also mentioned chemical metals and then that. Where are we on this diversification? Where we shouldn't share some progress to help us understand better?
I think you've understood the effort I've seen in my communications. You said you already started electronic chemicals. We've done five to seven projects in that area, and we see a very good opportunity coming this year. We see this to become a good segment in the next 4-5 years.
I think you have also add something, Atul?
Yeah, I think that's a very promising segment. If we continue to work on it, there is good traction. We have been able to connect with some of the global customers and are working actively on some 10-odd projects, which, going forward in the coming period, will give us good revenue as well.
Thank you for all the answers. We appreciate it.
Thank you. The next question is from the line of Bhavya Gandhi from Dalal and Broacha Stock Broking Private Limited. Please go ahead.
Yeah. Hi, thanks for the opportunity. First question was regarding we filed one product called Discovery Molecule in India. Can you throw some light on the revenue potential? What is the product like? How would the margins look like? Something on that front.
As we mentioned, that is in the Lepidopteran space, which is a pretty large segment of a crop and multiple crops. You can appreciate the size of the insecticide market for those crops in a couple of thousand dollars. That's the opportunity segment that we have. Now, what happens in size and shape? Obviously, as we get closer to the market, at that point, it will be the right time to estimate size and scale. As you said, we're in the development phase. It's a substantial, interesting excitement, more than the size of our ability to put the innovation out there.
All right. On the pharma utilization, if we can throw some light, what is the peak revenue that we can generate on a 2-3 -year basis? That would be really helpful.
W e are looking at a growth phase, there's not an asset utilization model here. This model is about CRDMO-led contracts, development, research, and services, along with investments that we're doing. Obviously, as we mentioned, we are looking to actually get 2-3 times our size over the next 3-4 years.
That's it from my end. Thank you.
Thank you. The next question is from the line of Saheel Shirsat from Delta Investment Advisors. Please go ahead.
Thank you so much . My question is, what are the agroc hem molecules that we have launched in the last three years? How much is their contribution in our current revenue now, and how do we see this move going forward? Thank you.
Agroc hem's launched in the last 2-3 years, what is the contribution to the total revenue? Is that your question?
Yeah. We're talking about the freshness index which we put up already. That's around 15% -1 8% of our chemical export business, and that's what has been growing substantially in the last two years.
Thank you.
Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Equities. Please go ahead.
Thanks for the follow-up. If you look at the pharma business in terms of the revenue ramp-up, you know, currently, what is driving the revenue? Is it API sales or R&D projects? Can you share, when you talk about standardization, what are the milestones you expect in terms of line of sight for the business in terms of contracts or order book for intermediate? How do you really actually put that in perspective so that we can get some sense in terms of?
Answer that I've offered in the numbers. We at the present moment are building our foundation. It's too early to have order booking scenarios. We're building credibility in the market. We're demonstrating our ability. Our strategic focus is to move to the CRDMO place. I would say that we are pretty happy with the progress that we made in that area. The growth has finally come from that area. Obviously, as you would very much understand, being in the CRDMO place, which you would understand well, there's a long, long gestation. As earlier Ramesh mentioned, the seeds have been sown, and it is with building the right customer clientele base, a lot of efforts have been put by the team. Given the external dynamics and when the environment is settled, you see this could turn out into a longer-term as a three to four-year scenario to drive the productivity.
Ramesh, if you wish to add anything more at a high level, please go ahead.
Yeah. No, if you just change minds, I think that covered it well. On your first question, both products and the services business, which is essentially the CRDMO business, both of them grew nicely year over year. That could answer to your question about any contributor to the growth numbers. What you're focusing on is to build a pipeline on the D MO side that involves late-stage programs, and you're doing okay there. You know, it is a world that keeps changing, given some of the policies that you're trying to get clarity on. In general, there is interest in diversification. The China Plus One strategy is still active. We also have a site in Europe, which is attractive to a lot of customers to begin a conversation.
As I mentioned, there are some unique technologies that have come through the CSM business, flow being one example, that are also attractive to CSM. We've been levering the brand. We've been levering the science at its foundation for PI as a whole. We're levering the fact that we have a EU presence, and of course, we have excellent capabilities internally and people to sort of build the brand. Yes, there is significant traction. We just have to make sure that we are doing as well despite the uncertainty that's created with all the policies. I think mine's headed right when everything's settled down, we want to be there with the customers as well.
Sorry, if I may ask, on the CSM business, this volume decline of 9%, is it because of the deferral of orders, or is it because some of your contracts are maturing? How do you see the business excluding new products that kind of go back to the normal double-digit growth? Would it require new orders or repeat orders? How do you see that in terms of the progress in the business?
This is broadly, you know, in line to balance the inventory level. This is driven by, you know, supply chain issues. In the course of the month, we have seen some sort of inventory balancing by any customer. We expect no supply chain issue in the second half.
Okay, thank you very much.
Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to the management for closing comments.
Yes, thank you, everyone, for coming onto this call. We continue to appreciate you after all and keep us in the spot for favorable long boosts in agroscience.
Thank you. On behalf of PI Industries, that concludes this conference. Thank you for joining us, and we will now disconnect the call.