Pidilite Industries Ltd posted its Q4 earnings, reporting 9.8% underlying volume growth in Q4 and maintained EBITDA margins above 20%. However, profit remains below street expectations as input costs rose and demand from the construction sector remained uneven. The company reported consolidated net profit of ₹427.5 crore for the March quarter, up 40.5% from ₹304.3 crore a year ago. A sharp jump in raw material costs, especially of Vinyl Acetate Monomer (VAM), a key input for adhesives and sealants, weighed on overall profitability. VAM prices rose 5% during the quarter, contributing to a 15.9% increase in raw material costs.

“For the full year, we delivered 9.3% underlying volume growth and EBITDA margins close to 23%. We’ve remained consistent with our long-term goal of profitable double-digit volume growth,” said Sudhanshu Vats, managing director, Pidilite Industries Ltd, during the company’s post-earnings press brief. The company has stayed consistent to the long-term goal of delivering profitable double-digit underlying volume growth, he added. 

When asked about the potential demand environment going forward, Vats said the company remains “cautiously optimistic,” especially in light of the current Indo-Pak tensions. “It depends on what is the length of the conflict. That's why we've maintained in our commentary that we are cautiously optimistic moving forward,” he said. “We are optimistic on the classic consumer demand, but we are cautiously optimistic because of the new geopolitical developments and also the global economic developments.”

Vats said urban demand did show some improvement in the March quarter, though rural continued to outpace urban for the company. “We are very hopeful that with a second good monsoon, a rate cut, the tax rebate from the budget, and other policy measures, urban demand will continue to recover,” he added.

Pidilite’s construction segment performance was mixed, with Vats highlighting growth across residential, commercial, industrial, and institutional segments. The Dr. Fixit brand, which operates across both retail and project channels, performed well. “We are also gearing up through a more formalised, Pidilite Professional Services Group to address large projects and customer partnerships,” he said.

Looking ahead, the maker of Fevicol and Dr. Fixit outlined three key focus areas. First, it plans to continue investing in its growth portfolio. “We want to grow our growth portfolio at 2 to 4 times the real GDP rate,” said Vats.

Second, Pidilite will expand its digital and IT infrastructure, including pilot projects and use cases involving artificial intelligence. And third, it aims to build a more agile supply chain to support new and evolving product categories.

The company is also increasing its marketing spend as sales and margins rise with expenditures increased to 5.4% of net sales in Q4 FY25, compared to 4.7% in Q4 FY24 and 3.9% in Q3 FY25. The new campaign for Dr. Fixit featuring Amitabh Bachchan and field marketing initiatives around Fevicol was aimed at reinforcing brand visibility. “Our innovation rate is steadily improving. Products like Fevicol Hyper, Roff Starlight, and ergonomically redesigned Fevicol MR for children delivered robust growth,” Vats said.

On the distribution side, he added that Pidilite has increased its reach, expanded loyalty programmes, and strengthened dealer-user engagement through lead management systems. “These four pillars—portfolio strengthening, brand building, innovation, and go-to-market—have been consistent drivers and will continue to propel us forward,” Vats said.