Pidilite Industries Ltd
(NSE:PIDILITIND)
₹
1,660
-26 (-1.54%)
Market Cap: 1.69 Tn
Enterprise Value: 1.65 Tn
PE Ratio: 63.90
PB Ratio: 15.60
GF Score: 96/100 
Q1 2027 Pidilite Industries Ltd Earnings Call Transcript
Aug 05, 2026 / 10:30AM GMT
Release Date Price:
₹1665
(+2.78%)
Key Points
Positve
- Pidilite Industries Ltd (BOM:500331) delivered strong Q1 FY27 results with standalone revenue growth of 22.2% and underlying volume growth of 11.3%, driven by robust demand in the consumer and bazaar segment (12.2% UVG).
- The company's proactive pricing strategy to offset input cost inflation, coupled with operating leverage, led to a significant improvement in EBITDA margin (up 80 bps QoQ to 26.4%) and a 27.7% growth in standalone profit after tax.
- Consolidated performance was equally strong, with revenue up 21.3%, EBITDA margin improving by 120 bps, and profit after tax growing by 30.3%, supported by double-digit growth from both domestic and international subsidiaries.
- Management highlighted strong momentum in growth categories like Dr. Fixit (waterproofing) and ROF (tile adhesives), where they are gaining market share in under-penetrated markets (tile adhesive penetration is only 25-30%), with growth rates of 1.5x to 2x the market.
- The company is actively investing in future growth engines, including core innovations like Fevicol Expert and MCL Advanced, and is seeing positive traction in new ventures like Unofin and electronic adhesives, indicating a strong pipeline for long-term growth.
- Despite volatile raw material prices, management expressed confidence in managing margins within their 20-24% band, citing strong demand, proactive pricing, and a win-win philosophy with customers and the trade.
- The company's focus on building a strong ecosystem, including training applicators and working with architects on system-based solutions, is creating a significant competitive moat in its key categories.
Negative
- Gross margins contracted by 90 basis points year-over-year to 52.5% due to a sharp increase in input costs, particularly VAM, which spiked to INR1,370 per unit in Q1 from INR924 in the same period last year.
- Exports business experienced a decline in Q1 due to geopolitical issues in key markets, leading to lower B2B underlying volume growth of 7.3% compared to the consumer business, with management uncertain about the pace of recovery.
- The company's proactive price increases, ranging from 2% to 12%, may lead to some demand elasticity or trade pushback, and management acknowledged the possibility of needing to offer rebates if raw material prices continue to fall.
- Management noted that the strong Q1 margin performance was partly due to one-off benefits, including consuming lower-cost inventory and reduced promotional spending, which are expected to normalize in Q2, potentially leading to margin moderation.
- The competitive landscape is intensifying, with new entrants like a South Indian cement company planning to foray into tile adhesives, and a major paint company setting up a VAM facility, which could increase competitive pressure in the future.
- The company's paint business is still in a calibration phase, with management admitting they are not yet confident in their full playbook, particularly for the urban market, indicating slower progress in this segment.
- The operating environment remains highly volatile, with unprecedented fluctuations in crude and commodity prices, making it difficult to predict future pricing and margin trends with certainty.
Operator
Ladies and gentlemen, good day and welcome to Pidilite Industries Limited Q1 FY27 Earnings Conference Call hosted by Equirius Securities.(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Pranav Mehta from Equirius Securities. Thank you and over to you, sir.
Pranav Mehta
Equirus Securities Pvt Ltd - Analyst
Yeah, thank you, Palak. Good afternoon, everyone. Thank you for joining this call. From the management side, we have Mr. Sudhanshu, Managing Director.
Mr. Kavinder Singh, Joint Managing Director; Mr. Sandeep Batra, Executive Director of Finance and CFO; and Mr. Bhavesh Joshi, Senior VP, Domestic Accounts and Taxation. I'll now hand over the call to Sandeep, sir. Over to you, sir.
Sandeep Batra
Pidilite Industries Ltd - Executive Director-Finance & Chief Financial Officer
Thank you. Thank you, Pranav, and good afternoon and a warm welcome to everybody on the call. I'll just keep my opening comments brief. And the board had this
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