Pidilite Industries Limited hosted its Q2 FY27 Earnings Conference Call on October 29, 2026. The company reported strong top-line growth driven by broad-based volume expansion in both consumer and bazaar segments, alongside robust performance from international and domestic subsidiaries. Management discussed strategies for margin recovery, pricing initiatives, and future growth drivers including innovations and AI adoption.
Pidilite Industries Q2 FY27 Earnings Conference Call Highlights
On October 29, 2026, Pidilite Industries Limited held its Q2 FY27 Earnings Conference Call. The call featured key management personnel, including Mr. Sudhanshu Vats (MD), Mr. Kavinder Singh (Joint MD), and Mr. Sandeep Batra (ED and CFO), who provided insights into the company’s financial performance and strategic direction.
Financial Performance and Growth Drivers
During the second quarter, Pidilite Industries reported a stand-alone revenue of under INR4,000 crores, achieving a growth of 21.7% in nominal terms, supported by an underlying volume growth of 10.7%. This growth was broad-based, with Consumer and Bazaar volume growth at 11.1% and B2B volume growth at 9.2%. The company also highlighted strong performance from its international subsidiaries, which grew by 21.8%, and domestic subsidiaries, which saw a revenue growth of 22.2%.
For the first half of FY27 (H1), stand-alone revenues grew by 22%, with underlying volume growth at 11%. The H1 EBITDA margin stood strong at 23.5%.
Margin Management and Pricing Strategies
The company acknowledged the impact of elevated input costs, particularly VAM, which saw a consumption rate of $1,630 in Q2 FY27, nearly double that of the previous year. Despite a 720 basis points decline in gross margin, EBITDA margin came in at 20.4%, benefiting from operating leverage. Pidilite has implemented pricing increases, with a further round of 3% to 5% planned in certain areas. The company aims to maintain an EBITDA margin corridor of 20% to 24% in H2 FY27.
Innovation and Future Outlook
Pidilite is focused on innovation, introducing new products across brands like Fevicol, Dr. Fixit, and M-Seal. The company is also exploring new categories and sub-segments, including electronics, auto, and footwear manufacturing. The adoption of Artificial Intelligence (AI) is a key strategic focus, aimed at enhancing employee productivity, optimizing A&P spend, and improving manufacturing and supply chain efficiencies.
The company expressed confidence in sustaining double-digit underlying volume growth, driven by a philosophy of core growth and strategic investments in brand building and field marketing. Pidilite expects continued momentum in its construction chemicals segment, including waterproofing, tile adhesives, and floor coatings, both in retail and project businesses.
Demand Environment
The demand environment is described as broad-based, with a resurgence in urban growth complementing robust rural growth. While acknowledging the global macroeconomic uncertainties, including conflicts and supply chain disruptions, the company remains focused on generating demand through its on-ground efforts and brand initiatives in India. Pidilite is committed to delivering profitable underlying volume growth.
Raw Material Costs and Supply Chain
Regarding raw material inflation, particularly VAM, Pidilite has evaluated backward integration but finds current market conditions do not offer a cost advantage. The company relies on managing its supply chain effectively, securing raw materials, and optimizing procurement. They also noted that India lacks a natural advantage in ethylene or acetic acid, key components for VAM production.
The company also touched upon the new UnoFin product, a plaster designed to replace traditional layered applications, with initial positive responses observed in Delhi, Jaipur, and Chandigarh.
Source: BSE
