PIDILITINDNSEQ2 FY26October 31, 2025

Pidilite Industries Limited

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77turns

13analyst exchanges

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Management on call

Sudhanshu Vats

MANAGING DIRECTOR – PIDILITE INDUSTRIES LIMITED

Kavinder Singh

JOINT MANAGING DIRECTOR

Sandeep Batra

EXECUTIVE DIRECTOR AND

Pranav Mehta

EQUIRUS SECURITIES

Key numbers — 27 extracted

INR 3,272 crore

re approved by our Board yesterday. As you will see, the current quarter's stand-alone revenue of INR 3,272 crores had good growth from the Consumer and Bazaar segment, which grew with a UVG of 10.4%. And the B2

10.4%

f INR 3,272 crores had good growth from the Consumer and Bazaar segment, which grew with a UVG of 10.4%. And the B2B business, UVG, was 9.9%. Total stand-alone UVG was 10.3%, which translated into a va

9.9%

m the Consumer and Bazaar segment, which grew with a UVG of 10.4%. And the B2B business, UVG, was 9.9%. Total stand-alone UVG was 10.3%, which translated into a value growth of 10.4%. As you will note

10.3%

t, which grew with a UVG of 10.4%. And the B2B business, UVG, was 9.9%. Total stand-alone UVG was 10.3%, which translated into a value growth of 10.4%. As you will note that the Consumer and Bazaar bus

rs,

ss went into double- digit UVG after five quarters. And as you would recall, in the previous quarters, it was very high. It was all in very-high-single digits. One part of our business that did get i

0.5%

decline. Our stand-alone gross margins continued to improve and in this quarter were up by nearly 0.5% due to benign input prices. VAM, which is Vinyl Acetate Monomer, which is our single biggest ra

80%

tep up our expenditure behind advertising and sales promotion, which in absolute terms was nearly 80% higher than second quarter last year. And as a percentage to sales was up by nearly 150- 160 basi

160 basis point

arly 80% higher than second quarter last year. And as a percentage to sales was up by nearly 150- 160 basis points. Obviously, part of that was offset by higher margins and part of it was offset by better operat

10.7%

instruments. If I look at the subsidiaries, the domestic subsidiaries’ reported revenue growth of 10.7%, with significant improvement in EBITDA as the same grew by 22.6%. In the case of international

22.6%

ies’ reported revenue growth of 10.7%, with significant improvement in EBITDA as the same grew by 22.6%. In the case of international subsidiaries, top line was a bit subdued. Revenues grew 4.5%, and E

4.5%

ew by 22.6%. In the case of international subsidiaries, top line was a bit subdued. Revenues grew 4.5%, and EBITDA growth was similar. Consolidated revenues at INR 3,540 crores, grew by 9.8% in the qu

INR 3,540 crore

ne was a bit subdued. Revenues grew 4.5%, and EBITDA growth was similar. Consolidated revenues at INR 3,540 crores, grew by 9.8% in the quarter and EBITDA margins were similar as the same period last year. With

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Guidance — 20 items

Pranav Mehta

“So how are you looking at things, let's say, going forward and whether rural continues to out beat the other or we've started seeing some green shoots in the urban recovery as well?”

Tejash Shah

“Sir, given that we are in a very comfortable raw material cost environment, do you plan to step up investments behind new product launches or will spending remain at the normal level?”

Sudhanshu Vats

“I think we maintain that our A&SP will be in the band of 3% to 5%.”

Sudhanshu Vats

“We will be deploying them judiciously in A&SP, in GTM capability building.”

Sudhanshu Vats

“And that's why when I responded to your question for the second half of the year, my own assumption is we will be fine-tuning this model through this year to the second half of the year.”

Sudhanshu Vats

“And if you will remember, and I think many of you on this virtual table, I'm sure now though know it fully that we say that we will deliver core between 1 to 2x of GDP, growth between 2 to 4x of GDP and pioneering categories are there.”

Sandeep Batra

“So as you know, we don't give any guidance.”

Jinesh Kothari

“So sir, no major organic capacity expansion guidance on the line, is it?”

Sandeep Batra

“I don't know what you mean by major, but we've always said that our capex will be anywhere between 3% to 5% of sales.”

Sudhanshu Vats

“So for us, are we confident that this kind of momentum will maintain?”

Risks & concerns — 7 flagged

One part of our business that did get impacted, was exports which was largely due to geopolitical uncertainty as well as tariffs in some markets and export business in the quarter did decline.

— Sandeep Batra

And there is, of course, pressure on exports, and that's the reason you are seeing 9.9%.

— Sudhanshu Vats

Many FMCG peers have called out the impact of monsoons during this quarter.

— Himanshu Singh

So have you also witnessed any impact of monsoon extended range because as we are involved in the construction business?

— Himanshu Singh

So have you also seen any impact of monsoon during this quarter?

— Himanshu Singh

Now as this releases some amount of income in the hands of all Indians, what is the impact of that, which discretionary category benefit?

— Sudhanshu Vats

So therefore, the impact of this on construction and further fill to construction, we stay very optimistic on this, which you can see in our commentary as well.

— Sudhanshu Vats

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Q&A — 13 exchanges

Sir, so I wanted to understand on the rural and urban demand recovery. So how are you looking at things, let's say, going forward and whether rural continues to out beat the other or we've started seeing some green shoots in the urban recovery as well?

Sudhanshu Vats

Yes, Pranav, thanks for the question. And as always, good to hear from you. I think very specifically and very quickly to answer about this is for us, rural still continues to do better than urban. So this has been a trend now over 5 years, if I'm not mistaken, maybe 16 to 20 quarters, if not longer. So rural continues to do better than urban. But in the quarter that's gone by Q2 FY '26, urban performance has also been very good. So urban, if I can use the word, is inching up. Urban performance has been very good. I think our growth drivers in quarter 2 have been our construction sector growth

Given that, sir white glue demand is closely linked to renovation and interior section fit-outs, are you seeing the share of renovation demand rising compared to new construction?

Sudhanshu Vats

So in terms of very specific data point, if I was to say, we haven't done very specific recent study to be able to quantify it one way or the other. But from what we are observing and when we travel and all that, I think there is no reason to believe that the share of renovation will go over new construction. If at all, I think the share of new construction is going to creep up vis-a-vis renovation. Good news, as you know for Pidilite, is that we are very well poised in both spaces. But we haven't done any specific recent study to quantitatively answer your question. Our observation is that ne

Sir, a couple of questions. Sir, given that we are in a very comfortable raw material cost environment, do you plan to step up investments behind new product launches or will spending remain at the normal level?

Sudhanshu Vats

I think as Sandeep just told you on our commentary for the quarter 2 as well and where of course, because of competitors, the numbers were looking even more accentuated as percentage growth or percentage turnover. I think we maintain that our A&SP will be in the band of 3% to 5%. This quarter, we've come in at about 4.2%. So I think to answer your question, would we be deploying the expansion, if at all, in gross margin for investments? The answer is yes. We will be deploying them judiciously in A&SP, in GTM capability building. As you are aware, we are building a full-fledged architect interi

Sir, congratulations for sustaining 10% growth in the Consumer and Bazaar segment. I would like to, sir, if you could talk, give us some flavor on various sub segments in the B2C business like Araldite waterproofing and though they have some other core categories as well as the growth in pioneer categories like Roff and electronic adhesives. If you could give us some flavor on various categories, how the growth have trended in this quarter?

Sudhanshu Vats

Yes, so Himanshu, I may not get granular into each of those because I'm saying we report this as one segment. But just to tell you basically, our growth segments in Consumer and Bazaar have done very well. And if you will remember, and I think many of you on this virtual table, I'm sure now though know it fully that we say that we will deliver core between 1 to 2x of GDP, growth between 2 to 4x of GDP and pioneering categories are there. So first of all, Roff is well beyond pioneering now. It's one of our important growth categories. Pioneer, we define as once we cross INR 100 crores. So I thi

Sir, I wanted to ask I think that your sales behind investments that you're doing in Pidilite Ventures, anything that you want to highlight specifically?

Sandeep Batra

Pidilite Ventures. So nothing I mean, nothing really in that sense to highlight. We did some investment in Pidilite Ventures. And Pidilite Ventures as part of its portfolio continuously is evaluating in either new investments, or investments in or companies in which they want to increase the stake. So as and when that happens, we will obviously share with you. But at this moment, there is nothing really to report regarding the investments made by Pidilite Ventures. Got it. Sir, any specific capex or anything that you're looking at from the incremental cash planning that you are having or any s

Congrats on a good set of numbers. Sir, first question was on your woodworking adhesives. So you had already started to see mid-stage construction products like waterproofing, see an acceleration, some time back. Have we started to see even white glue see some acceleration because of the real estate up cycle?

Sudhanshu Vats

Yes. But I think in terms of now the white glue acceleration, we are seeing it. So therefore, what is happening is if you look at new construction cycles, one phenomena you are seeing, particularly in the big cities is that there is both on-site and a little bit of offsite, which is, if you were to look at I'm saying even amongst all of us on this virtual table again. If you were to ask and wherever you are doing any of the new projects or whatever, kitchens tend to be nowadays and a little bit of cupboards are basically are offsite, not necessarily on-site. So if you were to see my joinery's

Sir, just one small question on the input price cycle. Sir, it seems like the benign input prices and obviously result in gross margins seems to be in a very benign super cycle now. It's got extended and probably seems like it continues to be benign. Is there a way you give some outlook on how you see demand supply situation panning out over, say, next 12 months? I also hear that there were some Chinese capacity was also imminently coming, but it's not coming because the supply situation is very benign. Do you have like a 12-month view on how things are evolving and your outlook on input price

Sudhanshu Vats

So input prices, I think we've spoken about it a little bit back, Amit. I think as far as 6 months is concerned, we see it to be benign. In today's day and age, I think to your predecessor's question, Umang, I think to be able to look beyond that and it may not be prudent for me to get beyond this. I think your point that there is a little bit of demand softness in the big market of China. I think that's correct. So is there a little bit of demand softness in that big market? The answer is yes. Do we see it benign for the next 6-odd months? Clearly, the answer is yes. 12 months, do I have a cl

If you could give us any update on the electronics adhesives foray, the CollTech partnership. What stage is it at? At what point will we see it reasonably contributing to sales? Any update on that will be helpful?

Sudhanshu Vats

Yes. So I just want to tell you that basically, our specifications to most customers is on, our sales to a couple of customers has started. So I think there is work happening on that space. It's a tricky space, though. The point is that it is also, as I explained maybe in the call before this or earlier, is there are multiple areas where basically there is this application space and so on and so forth. So when we have some partnership, it is not that we will be able to tap into all of them. We will be able to tap into few of them. So I think in the areas that we will be able to tap into and we

As the government is giving a lot of priority to electronics manufacturing in the country. So can you share the opportunity size that we can see in adhesive segment, which is used in the electronic assemblies?

Sudhanshu Vats

Yes. Parshva this is very similar to what Himanshu was asking, I think, asked this question again. So just to tell you that we just responded to Himanshu. See, this is a space which is evolving as we speak. We are mapping area by area. This is quite complex and complicated. See, there are two things. First of all, on any instrument or anything which you look at, there are multiple areas of adhesion and thermal conduction and so on and so forth, which are there. Multiple meaning it could run into 100s easily. Now the question is that, within that, what are the areas where we will be having a ri

Many FMCG peers have called out the impact of monsoons during this quarter. So have you also witnessed any impact of monsoon extended range because as we are involved in the construction business? So have you also seen any impact of monsoon during this quarter?

Sudhanshu Vats

Of course, the monsoon is for everyone, Himanshu. But I think what is good about our company, and I want to reiterate that, and I think that's what makes Pidilite what Pidilite is, is that our focus on demand generation is extremely high. And therefore, our business model and our go-to-market strategy is focused on generating demand. And as you are aware, we have two field forces going out, and therefore, people are continuously focused on generating demand. I think this uniqueness of our model, coupled with the strength of our growing portfolio and the richness of our portfolio allows us to w

Sudhanshu, I have this question for our Jowat. So how do we are seeing the progress of Jowat since we have, I believe, factory was already completed and we were doing some project also. So can you give a little more color on how do we see over a couple of years?

Sudhanshu Vats

Bharat bhai, first of all, always good to hear from you. Thank you. I think Bharat bhai on this -- on the Jowat piece, I can tell you, and I was talking about it in the earlier part of the call in context of joinery, I think we are seeing clear traction when it comes to joinery. But as you know, hot melt adhesives, and hot melt PURs, have now extensive use in various areas. So there is a lot of use of these even in industries. So as I speak to you, what we are doing is we are also mapping this far more thoroughly. How do we take it well beyond woodworking and joinery. So woodworking and joiner

A couple of follow-ups. So first, at a very broader level, government has taken several bets to revive consumption and the recent one being GST rate cut. So when you speak with your sales team, channel partners, are you seeing any visible signs of recovery, which gives us some hint that consumption is better than what it was, let's say, 6 months back or 9 months back?

Sudhanshu Vats

So as I was telling you, I think for GST 2.0, Tejash, it may be too early to call any verdict. Having said that, and I maintained this and we've been saying this for some time, it is the right step. So I think I want to congratulate the government, everyone involved and all that, making sure that all your staples and daily consumption items for common Indian, every Indian are at 5% is exactly the steps we should have taken and we have taken. So that's a very good step. Now as this releases some amount of income in the hands of all Indians, what is the impact of that, which discretionary catego

So thank you very much. Thank you, everybody, who's joined the call for your continued interest in Pidilite. Wishing each of you a very good evening, and we'll connect after the third quarter earnings. Thank you.

Management

Speaking time

Sudhanshu Vats

Moderator

Sandeep Batra

Tejash Shah

Himanshu Singh

Jinesh Kothari

Bharat Sheth

Pranav Mehta

Mohit Jain

Umang Mehta

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Opening remarks

Pranav Mehta

Thank you. Good afternoon, everyone. On behalf of Equirus Securities, I welcome you to the 2Q & 1H FY '26 Post Results Concall with management of Pidilite Industries Limited. From the management side, we have Mr. Sudhanshu Vats, Managing Director; Mr. Kavinder Singh, Joint Managing Director and Mr. Sandeep Batra, Executive Director and CFO. And I will straightway hand over the call to Mr. Batra for his opening remarks post which we'll have the Q&A session. Over to you, sir.

Sandeep Batra

Thank you, Pranav, and good evening, and welcome to everybody on the call. I'll quickly give you my opening remarks and then open the floor for Q&A. And I'll take you through the second quarter and half year FY '26 results, which were approved by our Board yesterday. As you will see, the current quarter's stand-alone revenue of INR 3,272 crores had good growth from the Consumer and Bazaar segment, which grew with a UVG of 10.4%. And the B2B business, UVG, was 9.9%. Total stand-alone UVG was 10.3%, which translated into a value growth of 10.4%. As you will note that the Consumer and Bazaar business went into double- digit UVG after five quarters. And as you would recall, in the previous quarters, it was very high. It was all in very-high-single digits. One part of our business that did get impacted, was exports which was largely due to geopolitical uncertainty as well as tariffs in some markets and export business in the quarter did decline. Our stand-alone gross margins continued to im

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