More Stories

Informist, Thursday, Jul. 30, 2026

 

By Gunjan Rajput

 

NEW DELHI - Pidilite Industries Ltd. is expected to report a strong revenue growth for the June quarter, driven by healthy demand across its Consumer and Bazaar and business-to-business segments. Price hikes taken to offset higher raw material costs are also expected to support growth. However, elevated vinyl acetate monomer and crude oil prices during most of the quarter are likely to keep pressure on margins, though operating leverage and timely price increases are expected to cushion the impact.

 

The company's revenue is expected at INR 44.38 billion, up over 18% year-on-year, according to the average of estimates from seven brokerages. The revenue growth is supported by strong volume growth and cumulative price hikes of around 11-12% taken to offset raw material inflation, according to the brokerages. The highest estimate for revenue is INR 45.38 billion by ICICI Securities Ltd., while the lowest is 43.72 billion by Bank of America Global Research.

 

The fevicol maker's consolidated net profit is expected at INR 7.75 billion for the June quarter, according to the average of estimates from seven brokerages. This is over 15% higher than a year ago. The highest estimate for net profit is INR 8.25 billion by ICICI Securities, while the lowest is INR 7.37 billion by JM Financial Institutional Securities Pvt. Ltd. On a sequential basis, net profit is expected to rise nearly 26% and revenue about 24%.

 

The company's consumer and bazaar business is expected to report an underlying volume growth of 11-13%, supported by healthy demand across the construction, repair and renovation segment, according to brokerages. Revenue growth in the segment is expected to be boosted by price hikes. The business-to-business segment is also expected to post a 10-16% revenue growth, according to brokerages.

 

The company's earnings before interest, tax, depreciation, and amortisation are pegged at INR 10.84 billion, according to the average of estimates from seven brokerages. The highest estimate for EBITDA is INR 11.64 billion from ICICI Securities, while the lowest is INR 10.37 billion from JM Financial Institutional Securities.

 

Higher prices of vinyl acetate monomer, a raw material used in adhesives, and crude oil prices during April and May are expected to put pressure on gross margins. However, timely price hikes and operating leverage are likely to cushion the impact. Vinyl acetate monomer prices corrected sharply towards the end of June, raising hopes of easing input-cost pressure in the coming quarters, according to Kotak Securities Ltd.

 

Brokerages are divided on EBITDA margin expectations. ICICI Securities expects operating margin to expand 58 basis points year-on-year to 25.6%, supported by price hikes and operating leverage. Kotak Securities expects EBITDA margin to remain largely flat at around 25%. Nuvama Wealth Management Ltd. expects EBITDA margin to decline about 157 basis points. In the corresponding quarter of the previous financial year, the company's consolidated EBITDA margin was 25.1%.

 

Brokerages also have differing views on gross margins. Kotak Securities expects gross margin to decline 265 basis points to 51.5% due to higher vinyl acetate monomer and crude oil prices. Nuvama expects gross margin to expand about 198 basis points to 56.1%.

 

Analysts will closely watch the management's commentary on demand trends, pricing, raw material costs, margin outlook and the sustainability of volume growth.

 

Pidilite Industries is scheduled to report its June quarter results on Tuesday. Thursday, shares of the company ended flat at INR 1,629.90 on the National Stock Exchange. The shares are up over 12% since the company reported its March quarter results.

 

Of the seven brokerage reports on the company available with Informist, six have a 'buy' recommendation on the stock with an average target price of INR 1,716. This is over 5% higher than the current market price. One brokerage has a 'hold' recommendation on the stock with the target price of INR 1,600.
 

The following are the June quarter earnings estimates for Pidilite Industries from seven brokerages in descending order of the estimate of net profit in INR billion:

 

 

Brokerage name	Net Sales	Net Profit	EBITDA
ICICI Securities Ltd.	45.38	8.25	11.64
Kotak Securities Ltd.	44.19	8.02	11.06
Prabhudas Lilladher Pvt. Ltd.	43.91	7.98	11.11
Motilal Oswal Financial Services Ltd.	44.34	7.66	10.83
Nuvama Wealth Management Ltd.	44.70	7.55	10.50
Bank of America Global Research	43.72	7.422	10.42
JM Financial Institutional Securities Pvt. Ltd.	44.40	7.37	10.37
Average	44.38	7.75	10.84

 

End

 

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

 

Edited by Akul Nishant Akhoury

 

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.