Pidilite Industries reported a robust Q3 FY26, with standalone revenue growing 11%, driven by an underlying volume growth (UVG) of 9.3%. Domestic UVG stood strong at 11%, offsetting a sharp 13.5% decline in exports due to geopolitical factors. Standalone EBITDA margins improved to 24.5%, and the company remains focused on strengthening its core brands like Roff while pursuing expansion in pioneering categories like electronic adhesives.
Pidilite Announces Q3 FY26 Performance
Pidilite Industries Limited hosted its Q3 FY26 Earnings Conference Call on February 4, 2026, detailing strong operational performance despite global headwinds, particularly in exports. The management team, including MD Mr. Sudhanshu Vats and JMD Mr. Kavinder Singh, guided the discussion.
Key Financial and Volume Metrics
The company reported significant growth indicators for the quarter:
- Standalone revenue: INR 3,425 crores (11% nominal growth).
- Underlying Volume Growth (UVG): 9.3% overall.
- Consumer and Bazaar UVG: 9.7%.
- B2B UVG: 7.4%.
- Total Domestic UVG: Strong at 11%, showing consistent improvement over 8 quarters.
- Exports declined by a sharp 13.5% due to geopolitical challenges, impacting the overall UVG.
- Standalone EBITDA margin improved by about 24 basis points to stand at 24.5%.
- Profit After Tax grew by 12.5%.
Consolidated revenues for the quarter were just under INR 3,700 crores, marking a 10.2% increase. Management noted a one-time charge of INR 47 crores (standalone) related to the new Wage Code.
Export Challenges and Geopolitical Context
Mr. Vats addressed the export decline, attributing the harshest impact to geopolitical issues affecting their pigments business (which has direct US exposure). While the US tariff deal is pending ratification (6-9 months away), management believes this specific export challenge is largely behind them. They confirmed that domestic B2B delivered mid-teens growth, and plans are in place to bring overall B2B growth back into the mid-teens.
Roff Mass Market Strategy and Competition
In response to queries about the Roff brand’s mass media advertising and competition against large CPG players, Mr. Vats emphasized the “classic Pidilite playbook” to build Roff holistically as their “next big brand.” He clarified that Roff Cera Clean competes based on distinct product superiority and adjacency to tiling work, rather than directly against FMCG cleaning brands. Furthermore, the portfolio is significantly balanced, with 70% to 75% of business coming from repair/renovation, insulating it from new construction slowdowns.
Construction Portfolio Segmentation
JMD Mr. Kavinder Singh detailed the diversified approach in the construction segment, spanning waterproofing, tile adhesive, and flooring solutions across residential, commercial, infra, and industrial segments. He confirmed that the company is not seeing any slowdown whatsoever in the construction segment, focusing on project penetration via Pidilite Professional Solutions and specialized solutions, which is driving faster share gains in the projects space than in retail.
Tile Adhesive Category Dynamics
The tile adhesive category (replacing cement) is growing at an estimated 18% to 20% driven by penetration, not just overall tile business growth (which is 8-10%). Pidilite is focused on category creation and maintaining competitive pricing through distributed manufacturing. Management expressed confidence in continuing to grow well ahead of the category rate.
Pioneering Segments and Distribution Deepening
Growth levers include premiumization (e.g., Fevicol Nail-free Ultra) and pioneering segments. Regarding new ventures:
- Haisha Paints (TAO-TK): Progress is steady, focusing on establishing a clear “right-to-win model” before an all-India launch beyond Southern and Eastern states.
- Electronic Adhesives: Work is laborious, involving 12 to 18-month rigorous testing cycles for consumer electronics and automotive applications, but management remains excited.
Distribution strategy emphasizes going “deeper” in existing points (Pidilite Ki Duniya – PKD and Super PKD) through portfolio innovation and premiumization, rather than relying heavily on adding new touchpoints, as depth yields better unit realization.
EBITDA Outlook
Addressing the margin stability, CFO Mr. Sandeep Batra noted that while Q3 performance adjusted for one-offs was higher than the comfort corridor, the objective remains focused on faster growth by reinvesting gains. The company expects to maintain the long-term consolidated EBITDA corridor target of 20% to 24%, cautioning analysts against focusing solely on quarterly performance.
Source: BSE
