Pidilite Industries , a leading manufacturer of adhesives and construction chemicals, has projected revenue growth of 10-11% for FY26 while aiming to maintain EBITDA margins at 24-25%. The company has reported strong double-digit growth in underlying volume and announced plans to increase its stake in its subsidiary, Pidilite C-Techos Walling Limited (PCTWL).

Growth Projections and Segment Performance

Pidilite Industries expects its consumer and bazaar segment unit volume growth to rise 10%, while the B2B segment shows an 11% improvement. The company's growth strategy includes new product launches under the Fevicol, Roff, and Dr. Fixit brands. Additionally, Pidilite plans to achieve a 70% renewable energy mix and continue sustained marketing investments to drive double-digit volume expansion and maintain margin stability through FY27.

Strategic Move to Strengthen Construction Business

Pidilite intends to purchase 727,200 equity shares from the existing shareholder, Chetana Exponential Technologies Private Limited, increasing its shareholding in PCTWL from 60% to 100%. This acquisition represents a strategic move to consolidate Pidilite's position in the construction chemicals and walling technology sector.

Transaction Details

The company will execute a share purchase agreement with Chetana Exponential Technologies Private Limited and PCTWL to finalize the transaction. The shares will be acquired at a cost of Rs 72,720.00, valuing each share at Rs 10.00.

About Pidilite C-Techos Walling Limited

PCTWL, incorporated on March 5, 2020, specializes in the construction of building works and structural or architectural projects using C-Techos wall technology. The company also manufactures ACC panels and other ancillary products.

Financial Performance

PCTWL reported no turnover for the fiscal years ending March 31, 2022, and March 31, 2021. However, it generated a revenue of Rs 0.47 crores in the fiscal year 2022-23.

Market Impact and Outlook

While the PCTWL transaction is not considered material for Pidilite Industries, it demonstrates the company's commitment to strengthening its presence in the construction technology sector. Pidilite expects better conditions for its domestic operations, anticipating a favorable market environment for its business activities within India.

Conclusion

Pidilite Industries' projected revenue growth, strong volume performance, and strategic acquisition align with its expansion strategy in the construction and building materials sector. By gaining full control of PCTWL and focusing on new product launches and sustainable practices, Pidilite aims to leverage its technology and expertise to enhance its offerings in the construction chemicals market. The company's optimistic outlook and growth initiatives position it well for potential future success in the Indian market.

Pidilite Industries , a leading manufacturer of adhesives and sealants, has reported robust financial results for the second quarter, showcasing strong growth in revenue and volume.

Revenue and Volume Growth

Pidilite Industries reported net sales growth of 10.4% to ₹3,272.00 crores for the quarter. The company achieved an impressive underlying volume growth of 10.3% for the same period. For the half-year, net sales grew by 10.5% to ₹6,740.00 crores.

Segment Performance

The company's financial results reveal strong performance across its main business segments:

• Consumer and Bazaar segment: Revenue grew by 10.8% with volume growth of 10.4%
• Business to Business segment: Grew by 8.7%, although it was impacted by lower exports of industrial products due to higher tariffs

Profitability and Margins

Pidilite Industries reported improved profitability and stable margins:

• Gross margins improved by 47 basis points due to lower input costs
• EBITDA margins remained stable at 24.7% for the quarter
• Profit after tax increased to ₹586.00 crores for the quarter and ₹1,236.00 crores for the half-year

Management Commentary

Sudhanshu Vats, Managing Director of Pidilite Industries, noted that the company delivered growth despite challenging macro-economic conditions. He expressed optimism about domestic market improvement, citing favorable monsoons and growth in the construction sector as positive factors.

Looking Ahead

As Pidilite Industries continues to navigate the dynamic market environment, the company's strong revenue and volume growth provide a solid foundation for future performance. The improved gross margins and stable EBITDA margins indicate effective cost management despite challenging conditions.

Pidilite's diverse product portfolio and strong presence in both consumer and business segments position it well to capitalize on various growth opportunities in the adhesives and sealants market. The company's ability to deliver growth in challenging macro-economic conditions demonstrates its resilience and market strength.

Investors and analysts will be keenly watching how the company leverages the anticipated improvement in the domestic market, particularly with favorable monsoons and growth in the construction sector, to drive further growth in the coming quarters.