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Pidilite registered strong performance in Q1FY27

ICICIdirect Research 05 Aug 2026 DISCLAIMER

News: (Pidilite) registered strong performance in Q1FY27 with consolidated revenues and EBIDTA growing by 21% and 27% respectively in the backdrop of an uncertain global environment. Its revenue growth of 20%+ to Rs4,551.6cr was driven by 22.5% growth in the domestic Consumer and Bazaar (C&B) revenues grew by 22.5%YoY (with underlying volume growth [UVG] of 12.2%) and Domestic business to business (B2B) continues to grow in double digit with UVG 10.4%. Exports UVG decreased by 8.4%YoY impacted by geopolitical conditions. Price hike, low cost inventory of raw material and double digit volume growth arrested significant dip in gross margins at 66bps YoY to 53.5% despite sharp increase in the VAM prices. Double digit volume growth and lower other expenses (as % to sales) led to 116bps YoY to 26.2%. Its consolidated EBIDTA grew by 27% YoY to Rs1,194cr and adjusted PAT grew by YoY to 28% YoY to Rs872cr.

View: Pidilite started FY27 on a strong note delivering strong operating performance. The company managed its profitability very well in Q1. However, with no more low-cost inventory on books, we expect EBIDTA margins to come under stress in Q2. However, with crude prices stabilising we expect VAM prices to correct from its high in the coming months. This will relieve substantial presure from the margins in H2FY27.  We expect B2B demand to sustain due to a strong real estate cycle and higher infra/construction growth. C&B business is gaining strong traction due to product innovations. We will get more clarity on the demand environment and raw material inflation in the conference call.

Impact: Positive

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