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Informist, Friday, Oct. 24, 2025

By Narayana Krishna

HYDERABAD – Strong consumer demand and market share gains, coupled with an increase in volumes, are likely to help Pidilite Industries Ltd. report healthy earnings growth on a year-on-year basis for the September quarter, according to the brokerages tracking the company. A decline in raw material prices will also likely help the company's consolidated earnings performance for the quarter, according to analysts.

Pidilite is projected to report a consolidated net profit of INR 6.1 billion for the September quarter, up 14% on year, according to the average of estimates from five brokerages. The company's net sales for the quarter are expected to rise 8% on year to INR 34.8 billion.

"Despite weak consumption trends and unseasonal rains, Pidilite is expected to deliver strong growth, outperforming the broader decorative paints industry," Kotak Securities Ltd said in a report.

The highest estimate for the company's net profit is INR 6.3 billion from Prabhudas Lilladher Pvt. Ltd., while the lowest estimate is INR 6.0 billion by Nuvama Wealth Management Ltd. The revenue estimates range from a high of INR 35.6 billion by Kotak Securities to a low of INR 33.2 billion by Prabhudas Lilladher. Pidilite Industries will announce its Jul-Sept earnings on Oct. 30.

Pidilite Industries is a consumer and speciality chemicals company known for its flagship adhesive Fevicol. The company manufactures a wide range of products, including adhesives, sealants, construction chemicals, art and craft materials, and industrial resins. It also operates in the industrial chemicals segment, producing vinyl acetate monomer and emulsions, which are key raw materials for adhesives and coatings.

The company is expected to clock 9% on-year volume growth for the reporting quarter, according to ICICI Securities Ltd. and Kotak Securities.

Pidilite Industries' September-quarter earnings growth is expected to broadly mirror the first-quarter trend, with revenue likely to rise around 10% on year, according to Kotak. Motilal Oswal said rural markets are expected to outperform urban markets for the company during the reporting quarter.

The company's domestic consumer and bazaar segment is expected to record about 9–10% on-year growth in volumes and sales, while its business-to-business segment is projected to post around 12% on-year growth, Kotak said. Pidilite Industries' Consumer and Bazaar segment caters to retail consumers and small tradesmen, offering products such as adhesives, sealants, construction chemicals, art and craft materials, and school supplies under brands like Fevicol, FeviKwik, Dr. Fixit, and Fevicryl. This segment, which serves households, carpenters, painters, plumbers, and contractors through an extensive retail network, is the company's main growth driver, accounting for 80–85% of total revenue.

Pidilite Industries' gross margin is likely to expand 45 basis points to 54.8% led by a decline in raw material costs, according to brokerage Motilal Oswal. The company's earnings before interest, tax, depreciation, and amortisation margin is expected to improve to 24.2% from 23.8% a year ago, the brokerage said. Kotak Securities sees the company's EBITDA margin at 24.4%, down from 24.6% a year ago. Pidilite has set an EBITDA margin target at 20-24% for 2025-26 (Apr-Mar).

Pidilite Industries is planning to offer specialised industrial adhesive products for electric vehicles and electronic chips through its industrial adhesives division. Market participants are looking for an update on the new business offering. The management's commentary on the volume growth outlook for FY26, as well as the demand outlook, will be another key thing analysts will track.

Of the nine research reports on the company available with Informist, seven have a 'buy' or equivalent rating on the stock, while two have a 'hold' rating.

On Friday, Pidilite Industries shares ended at INR 1,507.10 on the National Stock Exchange, down 0.7% from its previous close.  

Following are the Jul-Sept earnings estimates for Pidilite Industries Ltd. from five brokerage firms in descending order by the estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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