Pidilite Targets 14–15% Revenue Growth as Volume Growth Holds Firm

Pidilite Industries is maintaining a strong growth trajectory, with double digit volume growth continuing in the first quarter of Financial Year 2026–27 and demand remaining steady across urban and rural markets.

The company recorded 11.3% underlying volume growth on a standalone basis during the quarter. Its Consumer and Bazaar segment performed slightly better, registering 12.2% volume growth and revenue of ₹3,458 crore.

Pidilite’s consolidated revenue increased 21.3% year on year to ₹4,541 crore in the first quarter. Consolidated profit after tax rose 30.3% to ₹884 crore, supported by operating leverage and brand performance.

The company’s revenue performance has also benefited from pricing measures implemented during the quarter. Pidilite raised prices in phases by up to 12% during the first quarter, providing additional support to revenue growth. However, with crude-related volatility easing, the company has indicated that it does not expect immediate additional price increases during the second quarter.

Based on the current demand environment and pricing support, Pidilite is maintaining its revenue growth expectation of 14% to 15% for Financial Year 2026–27.

Raw material costs remain an area to watch. Higher prices for key inputs, particularly Vinyl Acetate Monomer, have put pressure on gross margins amid geopolitical tensions in West Asia. Despite this pressure, operating leverage helped the company improve its consolidated EBITDA margin to 26.3%, compared with 25.1% in the corresponding period last year.

The Consumer and Bazaar business continues to be an important contributor to the company’s performance. Demand from smaller cities and rural markets has remained steady, supporting the company’s underlying volume growth.

Pidilite’s latest performance comes as the Indian adhesives and specialty chemicals market continues to see structural changes, including increasing formalisation and demand linked to real estate and infrastructure activity.

For the remainder of Financial Year 2026–27, the company will be closely watched for volume growth, raw material cost movements and the ability to maintain pricing support. Stabilisation in Vinyl Acetate Monomer prices and sustained demand could influence margins and revenue performance in the coming quarters.