Pidilite Q2 Results: Revenue Jumps 20.9% to ₹4,298 Crore, but Rising Material Costs Hit Margins

Pidilite Industries Q2 FY27 Results: Pidilite Industries reported strong revenue growth in the September quarter, supported by double-digit volume expansion across its consumer and industrial businesses. However, rising material costs continued to weigh on profitability, limiting the improvement in operating earnings.

The company posted revenue of ₹4,298 crore in the second quarter of FY27, marking a 20.9% increase from ₹3,554 crore in the corresponding quarter last year. The performance was also ahead of the CNBC-TV18 poll estimate of ₹4,245 crore.

Net profit rose 7.2% year-on-year to ₹626.4 crore, compared with ₹584.6 crore in the same period last year. While the growth in sales and profits reflects sustained demand across its business segments, the slower increase in earnings highlights the pressure from elevated input costs.

Double-digit volume growth across business segments

Pidilite recorded broad-based growth across its Consumer and Bazaar (C&B) and Business-to-Business (B2B) divisions during the quarter.

Revenue from the Consumer and Bazaar segment increased 20.7%, with underlying volume growth reaching 11.1%. The B2B segment also delivered a strong performance, reporting revenue growth of 21.8% and underlying volume growth of 9.2%.

The improvement in volumes across both divisions helped the company maintain revenue growth above 20%, despite continuing uncertainty in the market.

Material inflation puts pressure on operating margins

Despite the strong topline performance, profitability indicators reflected the impact of higher raw material costs.

Pidilite’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased 3.2% to ₹878 crore from ₹851 crore a year earlier. However, this was below the CNBC-TV18 poll estimate of ₹942 crore.

More significantly, EBITDA margin declined to 20.4% from 24% in the year-ago quarter. The contraction indicates that rising input costs are affecting the company’s ability to convert higher sales into operating profits.

The margin figure also fell short of the poll estimate of 22.2%, drawing attention to the cost pressures facing the adhesives and construction chemicals manufacturer.

Management remains focused on growth

Commenting on the performance, Managing Director Sudhanshu Vats said the company maintained its growth momentum through broad-based, double-digit underlying volume growth. He acknowledged the challenges posed by elevated material inflation and market uncertainty.

The company plans to continue investing in brands, innovation and distribution while focusing on execution and profitable growth during the second half of FY27.

Pidilite’s latest results underline a clear trend: demand remains strong across its business segments, but managing input costs will be important in protecting margins. The coming quarters will show whether the company can sustain its sales momentum while improving operating profitability.