Pidilite Q1 profit jumps 30% as strong volume growth offsets cost pressures

Pidilite Industries reported a 30.3% year-on-year rise in consolidated net profit for the June quarter, driven by robust underlying volume growth, price increases across product categories and broad-based demand across its Consumer & Bazaar (C&B) and Business-to-Business (B2B) segments despite higher input costs arising from the West Asia crisis.

The maker of Fevicol and Dr. Fixit posted a consolidated net profit of ₹884 crore for the quarter ended June 30, compared with ₹678.1 crore a year earlier. Revenue rose 21.3% to ₹4,551 crore from ₹3,753.1 crore, while EBITDA increased 27% to ₹1,194 crore. EBITDA margin expanded to 26.2% from 25.1% in the year-ago period.

Double-digit volume growth drives performance

Pidilite said underlying volume growth (UVG) remained strong at 11.3% during the quarter, indicating healthy demand across its product portfolio. On a standalone basis, Consumer & Bazaar revenue grew 22.5% with UVG of 12.2%, while the Business-to-Business segment recorded 16% revenue growth with UVG of 7.3%. Price increases across categories helped offset rising raw material costs.

Although gross margins came under pressure due to inflation triggered by the West Asia crisis, the company improved profitability through disciplined cost management and operating leverage. Standalone gross margin contracted by around 90 basis points to 52.5%, while consolidated gross margin declined by around 70 basis points to 53.3%. However, EBITDA margins improved on both a standalone and consolidated basis.

Domestic demand remains resilient

"We have commenced FY27 on a strong footing, with broad-based growth across both Consumer & Bazaar and Business-to-Business segments. Domestic demand continues to be resilient, supported by healthy performance in urban and rurban markets," Managing Director Sudhanshu Vats said.

He added that the company continued to invest in brand building and business development during the quarter to strengthen its market presence.

"Our disciplined execution has enabled us to manage volatility effectively, balancing investments in brand building, innovation, people and supply chain capabilities with prudent cost management. We continue to monitor external factors such as raw material inflation, freight costs and global supply chain disruptions, and stay confident that our proactive measures will mitigate risks while sustaining growth momentum," Vats said.

Standalone revenue from operations rose to ₹4,249.38 crore from ₹3,479.30 crore a year earlier, while profit after tax increased 27.7% to ₹829.87 crore from ₹649.80 crore. Profit before tax climbed to ₹1,119.52 crore from ₹879.39 crore in the corresponding quarter last year.

Shares of Pidilite Industries ended 1.25% lower at ₹1,622 apiece on the NSE on Tuesday. The stock has gained nearly 12% over the past year, broadly in line with the Nifty Next 50 index, which has advanced over 10% during the same period.