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Informist, Thursday, Aug. 7, 2025

By Anand JC and Ashutosh Pati

NEW DELHI/MUMBAI – Adhesive maker Pidilite Industries Ltd. Thursday said it is confident of retaining the double-digit underlying volume growth it registered in the June quarter for the entirety of the ongoing financial year. Pidilite is seeing consistent growth across categories, regions and product groups, its executives told analysts in a post-earnings conference call.

"I think if the overall demand sentiment picks up what you are hearing from everyone, that will be a little bit of further tailwind for us to be able to deliver better as we go forward," the company said. There is also a likelihood that Pidilite could improve its double-digit underlying volume growth going forward. 

Pidilite's gross margins for the June quarter were unchanged from the year-ago quarter. The company expects gross margins to remain the same this year.

On Wednesday, the company reported a consolidated net profit of INR 6.7 billion on revenues of INR 37.5 billion for the June quarter. Its revenue growth of 10.6% year-on-year was underpinned by an underlying volume growth of 9.9% across categories and geographies. This growth includes 70 basis points gained from price hikes.

The company does not expect to take any price hikes as commodity prices seem benign. "We don't see any commodity or input cost headwinds that will warrant an across-the-board increase in prices; input costs overall to remain soft," the company said.

As has been the trend across industries for the past many quarters, Pidilite said growth in rural areas continued to outpace demand in urban areas. This bodes well for Pidilite, as its strategy is focused on rural areas and small towns across five states in India. In addition, its operations have improved in states where it is running projects on a pilot basis as well. The company expects its target areas to deliver better growth than urban areas for a considerable period of time.

Pidilite expects to benefit from certain developments which have caused an increase in liquidity in the hands of customers. These developments include the rate cuts announced by the Reserve Bank of India this year and the tax cuts. "I also feel that some of the advantages of the cash in the hands of consumers will be more discretionary. Therefore, that should play out onto segments and sectors which are a little bit more discretionary, and we tend to be in that area, particularly home improvement and sometimes new construction," Pidilite said.

Pidilite earns around 50-52% of its revenues from core categories. This segment is growing at the same level as India's GDP. The rest of its portfolio is currently growing around two to three times the GDP, around 10-12% roughly, the company said. On Thursday, its shares closed 0.3% higher at INR 3,050.80 on the National Stock Exchange.  End

Edited by Deepshikha Bhardwaj

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