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Informist, Monday, Feb. 2, 2026

 

By Adhithya Aji

 

MUMBAI - Pidilite Industries Ltd. is likely to continue its growth trajectory in the December quarter, driven by strong demand, growth in volume, and lower cost of raw materials, according to brokerages tracking the company. The company is expected to post double-digit on year growth in net profit and revenue for the reporting quarter.

 

The 'Fevicol' maker is expected to report an over 13% on-year growth in consolidated net profit to INR 6.26 billion, according to the average of estimates from five brokerages. Sequentially, the growth will be 8%. The highest estimate for bottom line is INR 6.38 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 6.08 billion from ICICI Securities Ltd.

 

The company's consolidated revenue is estimated at INR 37.26 billion, an increase of nearly 11% on year and nearly 5% on quarter, according to the average of estimates. This is the highest on-year growth in 13 quarters. The highest estimate for sales is INR 37.78 billion from Motilal Oswal and the lowest is INR 36.63 billion from Nuvama Wealth Management Ltd.

 

An increase in volumes is expected to drive the revenue growth for the synthetic chemicals-based adhesives and sealants manufacturer, brokerages said. The volume growth is expected to be in double digits due to strong demand as there was no price hike in the reporting quarter, broking firm Prabhudas Lilladher said.

 

The company's revenue is estimated to grow 12% on year led by the volume growth of the same level, said Motilal Oswal, which has the highest estimate for top line. "Pidilite is likely to sustain double-digit growth, underpinned by margin tailwinds and resilient underlying demand," Motilal Oswal said.

 

The volume growth is expected to be 9% on year for the December quarter, slightly lower than the 9.7% reported in the year-ago quarter, Nuvama said. "Subsidiaries' aggregate revenues are projected to grow (around) 8% yoy (year-on-year), resulting in consolidated revenue growth of 10.2% yoy," Kotak Securities said. The subsidiaries of the company include Fevicol India Ltd. which is the flagship adhesive the company is known for.

 

The company's operating margin is likely to expand 15 basis points on year to 23.9%, according to ICICI Securities. This is due to softness in raw materials cost and lower operating leverage, the brokerage said.

 

The gross margin of the company is expected to rise 20 basis points on year to 54.5% in the December quarter due to favorable raw materials cost, according to Prabhudas Lilladher. Kotak Securities expects consolidated gross margin to improve 35 bps to 54.7% as crude oil and vinyl acetate monomer prices remained largely subdued in the reporting quarter. Vinyl acetate monomer is a major raw material the company uses to produce adhesive products.

 

The consumer and bazar segment of the company -- which covers products such as adhesives, sealants, art and craft materials, construction and paint chemicals -- is expected to post a volume growth of 8-9% on year for the December quarter, according to Nuvama. This is slightly higher than the growth of 7.5% posted in the year ago quarter. The segment contributed 80% to the consolidated revenue of the company in the September quarter.

 

The business-to-business segment's volume is expected to increase 12-13% in the December quarter, much lower than the 21.7% growth recorded in the year-ago quarter, Nuvama said. This segment covers products such as industrial adhesives, industrials resins, construction chemicals, organic pigments, and pigment preparations.

 

The company's earnings before interest, tax, depreciation, and amortisation are pegged at INR 8.92 billion, according to the average of estimates. This is an increase of nearly 12% on year from INR 7.98 billion reported in the year-ago quarter. The estimates for EBITDA range from a high of INR 8.98 billion from Motilal Oswal to a low of INR 8.83 billion from Nuvama.

 

The company's EBITDA margin is expected to increase 40 bps on year to 24.1%, as the company continues to invest in brand building, manufacturing facilities, and distribution expansion, Kotak Securities said.

 

The company will announce its December quarter earnings Tuesday. On Monday, shares of the company ended 1% lower at INR 1,412 on the National Stock Exchange. The stock has fallen more than 2% since the announcement of its September quarter earnings.

 

Of the six brokerage reports available on the company with Informist, five have a 'buy' recommendation on the stock with an average target price of INR 1,738 and one has a 'hold' call. The average target price for the buy recommendations is 23?ove the current market price.

 

Following are the Oct-Dec earnings estimates for Pidilite Industries from five brokerages in descending order by the estimate of net profit in INR billion:

  

Brokerage	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd.	37.78	6.38	8.98
Prabhudas Lilladher Pvt Ltd.	37.56	6.33	8.94
Nuvama Wealth Management Ltd.	36.63	6.29	8.83
Kotak Securities Ltd.	37.13	6.22	8.95
ICICI Securities Ltd.	37.20	6.08	8.87
Average	37.26	6.26	8.92

 

End

 

Edited by Ashish Shirke

 

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