PIDILITINDNSEAugust 07, 2025

Pidilite Industries Limited

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Management on call

Sudhanshu Vats

MANAGING DIRECTOR – PIDILITE INDUSTRIES LIMITED

Kavinder Singh

JOINT MANAGING DIRECTOR

Sandeep Batra

EXECUTIVE DIRECTOR

Bhavesh Joshi

VICE PRESIDENT, DOMESTIC

Jay Doshi

KOTAK SECURITIES

Key numbers — 36 extracted

INR 10

niversary of our founder, Shri B.K. Parekh, the Board has announced a special interim dividend of INR 10 per share as well as a bonus issue of 1:1. As you would recall, this bonus issue comes after 15

INR 3,467 crore

mes after 15 years. Coming now to the performance for the quarter. The stand-alone revenue of INR 3,467 crores was higher than same period last year by 10.6%, largely led by an underlying volume growth of 9.

10.6%

the quarter. The stand-alone revenue of INR 3,467 crores was higher than same period last year by 10.6%, largely led by an underlying volume growth of 9.9% with the remaining coming from price. Underly

9.9%

res was higher than same period last year by 10.6%, largely led by an underlying volume growth of 9.9% with the remaining coming from price. Underlying volume growth for both Consumer and Bazaar and B

9.3%

ying volume growth for both Consumer and Bazaar and B2B was strong. Consumer and Bazaar UVG was 9.3% and B2B was 12.6%. Within the geographical distribution for us, rural growth continued to outpace

12.6%

wth for both Consumer and Bazaar and B2B was strong. Consumer and Bazaar UVG was 9.3% and B2B was 12.6%. Within the geographical distribution for us, rural growth continued to outpace urban and that

101 basis point

in line with Q1 last year. However, our EBITDA margins were higher than same period last year by 101 basis points and stood at 25.6%. The standalone profit before tax and exceptional items was higher than last

25.6%

wever, our EBITDA margins were higher than same period last year by 101 basis points and stood at 25.6%. The standalone profit before tax and exceptional items was higher than last year by 18.5%, whe

18.5%

d at 25.6%. The standalone profit before tax and exceptional items was higher than last year by 18.5%, whereas profit after tax grew by close to 18%. Our domestic subsidiaries cumulatively reported a

18%

d exceptional items was higher than last year by 18.5%, whereas profit after tax grew by close to 18%. Our domestic subsidiaries cumulatively reported a sales growth of 11.5% and 31.7% growth in EBIT

11.5%

after tax grew by close to 18%. Our domestic subsidiaries cumulatively reported a sales growth of 11.5% and 31.7% growth in EBITDA because of softening of input costs and some pricing action taken last

31.7%

grew by close to 18%. Our domestic subsidiaries cumulatively reported a sales growth of 11.5% and 31.7% growth in EBITDA because of softening of input costs and some pricing action taken last year in I

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Guidance — 16 items

Sudhanshu Vats

“So as you would rightly expect, and as you said yourself, I think some of the issues which were faced then, particularly in AP and in Gujarat, have eased out.”

Sudhanshu Vats

“We are now saying that we will look at it more like a project with larger projects, with those buildings.”

Latika Chopra

“And also, what kind of pricing growth you would anticipate playing out for the rest of the year?”

Sudhanshu Vats

“I think if the overall demand sentiment picks up, which you are hearing from everyone, that will be a little bit of further tailwind for us to be able to deliver better as we go forward.”

Sudhanshu Vats

“So there will be pricing coming a little bit on top of the underlying volume growth that we deliver, that you will see.”

Sudhanshu Vats

“So for the full year if you look at it, and that guidance which we have given, the corridor of 20% to 24%, is the corridor you should look at and you should look at us.”

Sudhanshu Vats

“I think the way we started with the input cost being benign, are there chances that we will be on the high end of this corridor this year?”

Sudhanshu Vats

“I also feel that some of the advantages or the cash in the hand of consumers will be more discretionary.”

Sudhanshu Vats

“So therefore, we, in our preparedness, do not anticipate anything specific, unless something else blows up in that opinion.”

Amnish Aggarwal

“So what is the medium term goal over there?”

Risks & concerns — 5 flagged

My first question is, two quarters back, you had highlighted two states where there was some level of slowdown, I think Gujarat and Andhra Pradesh (AP), and then in Q4, you said it is easing out.

— Abneesh Roy

So our margins, if you look at same period last year, Q-on-Q, they are the same, versus fourth quarter, there may have been a little bit of decline, partly is because of mix.

— Sandeep Batra

But looking at the volatile geopolitical environment and we are all watching Twitter every day in morning, are there any specific supply chain or sourcing exposure that you are actively monitoring or worried about, which can pose some risk in near term?

— Tejash Shah

So therefore, to that extent, is there a little bit of headwind on these categories as for the short term?

— Sudhanshu Vats

See, I think I have talked about it a little bit but maybe at the risk of repeating it, I'll still say.

— Sudhanshu Vats

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Q&A — 8 exchanges

Congrats on very strong set of numbers. My first question is, two quarters back, you had highlighted two states where there was some level of slowdown, I think Gujarat and Andhra Pradesh (AP), and then in Q4, you said it is easing out. If you could update us now, are these two states now almost normal versus the pan-India growth? And any other states where you would want to highlight, which are the outperformers, and which are the laggards?

Sudhanshu Vats

So Abneesh, first of all, very good to hear from you. And thank you. I think indeed, these are strong set of numbers under the current context. Abneesh, as you rightly pointed out, from period to period, as we do analysis of different states and look at numbers and performances in every state, it keeps changing. But the good news is, like we were telling you last time as well, anywhere where we see a weakness, we do a very detailed analysis in the company, and we get into the root cause of why that has happened and put actions in place. So as you would rightly expect, and as you said yourself,

Sudhanshu and team, my first question was trying to get some more color from you on demand trends. If you could comment on your confidence in sustaining or improving this 10% volume growth, which is fairly healthy? And also, if you could talk about some flavor on the sub segments in the B2C business on adhesives, Araldite, waterproofing? You already talked about tile adhesives was very strong. But some of the other core categories, how are these placed versus the broader 10% volume growth Regd. Office: Regent Chambers, 7th Floor Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai – 400 021. Invest

Sudhanshu Vats

So thanks, Latika, and good to hear from you. In terms of our growth and Sandeep talked to you about that, our 9.9% UVG growth, which is this time, 9.3% Consumer and Bazaar and 12.6% B2B. So, this time around, this growth is very uniformly spread if I can use the word, across the 2 segments where you have the numbers, but I can also assure you and share with you that we are seeing consistent growth across regions, across categories, even across product groups. So that is very heartening. Very specifically, if I was to talk about a few product groups or categories, as you spoke about, we have s

Sir, couple of questions. So, given the recent policy push to revive demand, especially at the urban side, are you seeing any early signs of improvement there? Because you called out that rural still continues to do well for you. So just wanted to know your read on the ground?

Sudhanshu Vats

No, I think my view is very early to call anything. But having said that, we remain quite optimistic on the liquidity, which has been infused both through the budget in the hand of the consumers and also the last MPC announcements of the Reserve Bank of India Governor. So I think overall liquidity should be good for us. I think that, that should play out. I also feel that some of the advantages or the cash in the hand of consumers will be more discretionary. So therefore, that should play out on to segments and sectors, Regd. Office: Regent Chambers, 7th Floor Jamnalal Bajaj Marg, 208, Nariman

Sir, on the consumer business side, we have seen acceleration both at volume and at the value growth level, while B2B business, if I look at, there is a bit deceleration on the growth side, especially on the volume side. Given the base for B2B is also high, do you think that this 1Q kind of a growth should be the kind of a growth run rate for the coming FY '26?

Sudhanshu Vats

I cannot comment on a specific number, but what I will tell you is, see, the good news is that this is the eighth straight quarter of double-digit underlying volume growth for B2B. And you are right in your observation that the percentage growth, which you are seeing, 12.6%, seems to have moderated a little bit than what you were seeing in the immediate previous quarters, so that's absolutely correct. I think what is happening there is in terms of our impact, if at all, which I was saying in response to the earlier question, the response of all the macro geopolitical issues, and specifically t

I have a couple of questions. My first question is regarding the Haisha Paints because it's a large category, and we are currently present in say 5 states over there. So what is the medium term goal over there? Because I think it's now more than a year, we are Regd. Office: Regent Chambers, 7th Floor Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai – 400 021. Investor Relations - investor.relations@pidilite.co.in CIN: L24100MH1969PLC014336 there and it's a highly competitive category. So what are medium-term goals over there? And what kind of investments we have made in this particular venture?

Sandeep Batra

Yes, Amnish, so I think last year, we granted ESOPs after a gap of a couple of years. And the way the ESOP charge is accounted, it is, in some sense, front-loaded. That is why you saw an increase in the ESOP charge last year, and that kicker will continue for the first 12 months. But as also you would recall from the notes to the results, even yesterday, the company has granted further options. So I think the ESOP charge is likely to remain at the same level as we saw last year. If anything, there may be a slight increase because for the next 12 months, you will have ESOP cost for 2 grants, on

First of all, congratulations to the entire team that in a tough environment within the entire building materials space, Pidilite is one of the strongest to deliver. So, kudos to the entire team. My two questions. First, in the analyst meet, you had mentioned that at any period of time, there are 10 to 15 pilots, which are being run, as you mentioned, UnoFin at that period of time. Can you give us some brief or insight that what other categories or pilots, which we can expect going ahead? Or you have found some early success into those categories? This is my first question. I'll get back to se

Sudhanshu Vats

Yes. So Rahul, a good question, and thank you and God is kind and the team is very good. And fortunately, as I keep saying, our business model and our portfolio gives us an advantage. And we are very satisfied with the strong results that we delivered. I think coming to your point on pilots, see, there are some pilots which are bit more visible. So the visible ones, we talked about UnoFin, we talked about Haisha, we are doing some work in B2B in newer spaces, in newer categories. Those are one set of pilots. There is a second set of pilots we have in the company are around newer subcategories

I have got three questions. The first one is just continuing on what Rahul asked earlier. Can you give us some colour of what is probably driving the growth outperformance of Pidilite versus some of the other categories or companies that we track? And this is probably the ninth consecutive quarter where you have had 9%-odd UVG, right? So is your core also growing faster than maybe some of the other categories? Or it's largely innovation and growth in pioneer? And second is in FMCG, a lot of times, some companies do indicate contribution of innovation to growth or sales. So could you give us so

Sudhanshu Vats

So Jay, I think a very good question and thank you for asking this. See, I think I have talked about it a little bit but maybe at the risk of repeating it, I'll still say. See, the model itself, which we have, Jay, is very unique. And our portfolio is very diverse compared to many of the peer companies we are compared to. So therefore, if you were to look at some of the paints company, they would have 80%, 90% of their business coming from paints. You look at FMCG, they basically they are in the fast-moving consumer goods spaces. If you look at our portfolio, our portfolio tends to be very div

Yes. Thank you. Thank you very much to everybody who took out time and joined the call. Thank you very much, and have a good evening.

Management

Speaking time

Sudhanshu Vats

Moderator

Sandeep Batra

Jay Doshi

Abneesh Roy

Latika Chopra

Tejash Shah

Amnish Aggarwal

Rahul Maheshwari

Naveen Trivedi

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Opening remarks

Jay Doshi

Thanks, Manav. Good afternoon, everyone. On behalf of Kotak Institutional Equities, I welcome you all to Q1 FY '26 Earnings Call of Pidilite. We have with us Mr. Sudhanshu Vats, Managing Director; Mr. Kavinder Singh, Joint Managing Director; Mr. Sandeep Batra, Executive Director Finance and CFO; Mr. Bhavesh Joshi, VP, Domestic Accounts and Taxation. I'll now hand over the call to Mr. Batra for opening remarks. Over to you, sir.

Sandeep Batra

Thank you, Jay, and good afternoon to everybody on the call. I will quickly share my opening comments and covering the Q1 FY '26 results, which were approved at our Board meeting yesterday. To commemorate the 101st birth anniversary of our founder, Shri B.K. Parekh, the Board has announced a special interim dividend of INR 10 per share as well as a bonus issue of 1:1. As you would recall, this bonus issue comes after 15 years. Coming now to the performance for the quarter. The stand-alone revenue of INR 3,467 crores was higher than same period last year by 10.6%, largely led by an underlying volume growth of 9.9% with the remaining coming from price. Underlying volume growth for both Consumer and Bazaar and B2B was strong. Consumer and Bazaar UVG was 9.3% and B2B was 12.6%. Within the geographical distribution for us, rural growth continued to outpace urban and that has been the trend now for the last few quarters. Stand-alone gross margins were in line with Q1 last year. However, our

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