Analyst Concall
Pidilite aims to sustain double-digit volume growth in FY26
This story was originally published at 19:53 IST on 9 May 2025
Register to read our real-time news.Informist, Friday, May 9, 2025
Please click here to read all liners published on this story
--Pidilite: Jan-Mar vinyl monomer consumption cost $880/tn
--CONTEXT: Pidilite management's comments at post-earnings investor call
--Pidilite: FY26 demand outlook looking good but under normal environment
--Pidilite: Sales in urban market Jan-Mar better than past quarters
--Pidilite: To step up diversification of product portfolio
--Pidilite: Looking to diversify geographically to grow international sales
--Pidilite: Current vinyl acetate monomer consumption cost similar to Jan-Mar
--Pidilite: Recent cooling of crude prices positive for co
--Pidilite: Cautious about uncertain geopolitical situation, global economy
--Pidilite: Will not pocket crude cost gains as it will invite competition
--Pidilite: No immediate plans to scale up paints business
--Pidilite: Need to do more work in paints business before scaling up
By Shakshi Jain
MUMBAI/NEW DELHI – Pidilite Industries Ltd. is confident about sustaining a double-digit profitable underlying volume growth going forward, unless the current global economic and geopolitical uncertainties prolong beyond the near term, the company's management said in a post-earnings conference call Friday. The statement comes despite the strong growth seen in 2023-24 (Apr-Mar), meaning a high base for FY26.
"If this (uncertain geopolitical conditions) is short lived, maybe a month or two, then I think the year would play out to fundamental consumer demand. If this (geopolitical uncertainty) is extended, then the impact of it is something we have not factored in," a senior company executive said.
The adhesive-maker Thursday reported a 6% on-year rise in its revenue from operations for FY25 to INR 131.40 billion, aided by an underlying volume growth of 9.3%. Pidilite saw better growth in urban sales compared to previous quarters, despite slightly sluggish demand during the year.
The company is bullish on demand growth under ordinary circumstances for the current financial year. It is also betting on hopes of higher government spending in FY26, besides a healthy monsoon. Pidilite may also benefit from lower raw material costs this year, with vinyl monomer consumption costs falling to $880 per tonne in Jan-Mar from $925 per tonne in the year-ago quarter and $884 per tonne in the December quarter. Current vinyl monomer expenses are at the same levels as Jan-Mar, the company said.
Further, the recent correction in crude oil prices has been positive, even though an immediate transmission was not visible, the company executive said. On price adjustments, he said the company will take a call when the time comes. However, it does not intend to pocket gains from lower crude oil prices and make the market attractive for competitors.
Pidilite aims to step up diversification of its business portfolio, both from a products perspective as well as geographically. The adhesive-maker is also eyeing opportunities in the construction sector under its Pidilite Professional Solutions division.
"What we are realising is that there is an opportunity to tap into this larger sector (construction) by going in an integrated way to the architects and structural consultants," another company executive said.
Answering a question on the company's paints business under the Haisha brand, the company executive said the segment is growing month-on-month. However, Pidilite does not plan to scale up the business yet. With a presence across five states – Telangana, Andhra Pradesh, Odisha, Tamil Nadu, and Karnataka – the company is presently working towards capturing market share in "rural and small town India" under this segment, the executive said.
On Friday, shares of the company closed at INR 2,980 on the National Stock Exchange, up 0.8% from previous close. End
Edited by Nishant Maher
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
