Pidilite Industries Reports Robust Q2 FY26 Performance with 10.4% Revenue Growth
Pidilite Industries posted robust Q2 FY26 results with standalone revenue reaching INR 3,272.00 crores, a 10.4% year-over-year increase. Consumer and Bazaar segment led growth with 10.4% underlying volume growth, while B2B segment showed 9.9% growth. Gross margins improved by 0.5% due to lower input costs. Consolidated revenues grew 9.8% to INR 3,540.00 crores. Rural markets continued to outperform urban, though urban areas showed improvement. Management expressed confidence in maintaining double-digit growth and expects benign input costs for the next 6 months.
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Pidilite Industries , a leading adhesives manufacturer, has reported a strong performance for the second quarter of fiscal year 2026, with standalone revenue reaching INR 3,272.00 crores, marking a 10.4% value growth compared to the same period last year.
Consumer and Bazaar Segment Leads Growth
The Consumer and Bazaar segment, a key driver of Pidilite's performance, achieved an impressive 10.4% underlying volume growth (UVG), entering double-digit territory after five quarters. This segment's robust performance indicates a resurgence in consumer demand for Pidilite's products.
B2B Segment Shows Resilience
The Business-to-Business (B2B) segment also demonstrated strength, recording a 9.9% underlying volume growth. However, the export business faced challenges due to geopolitical uncertainties and tariffs in some markets, resulting in a decline.
Margin Improvement and Strategic Investments
Pidilite's gross margins improved by 0.5% in Q2 FY26, primarily due to benign input prices. The consumption rate of Vinyl Acetate Monomer (VAM), a key raw material, was $883.00 per ton compared to $980.00 in the same quarter last year. This margin expansion allowed the company to significantly increase its advertising and sales promotion expenditure, which rose by 80% in absolute terms.
Financial Highlights
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Standalone Revenue | INR 3,272.00 crores | 10.4% ↑ |
| Consumer & Bazaar UVG | - | 10.4% ↑ |
| B2B UVG | - | 9.9% ↑ |
| Gross Margin Improvement | - | 0.5% ↑ |
| Ad & Sales Promotion Expenditure | - | 80.0% ↑ |
Subsidiary Performance
Domestic subsidiaries reported a revenue growth of 10.7% with a significant 22.6% EBITDA growth. International subsidiaries saw a more modest 4.5% revenue growth.
Consolidated Performance
On a consolidated basis, Pidilite's revenues reached INR 3,540.00 crores, representing a 9.8% growth. EBITDA margins remained stable compared to the same period last year.
Market Dynamics
Rural markets continue to outperform urban markets for Pidilite, a trend observed over the past 16 to 20 quarters. However, urban performance has shown improvement in Q2 FY26, particularly in the construction sector growth brands.
Management Commentary
Sudhanshu Vats, Managing Director of Pidilite Industries, expressed confidence in maintaining double-digit underlying volume growth. He stated, "We are seeing clear traction when it comes to joinery. Our focus on demand generation is extremely high, and our go-to-market strategy is focused on generating demand."
Outlook
The management expects input costs to remain benign for the next 6 months. They are also optimistic about the construction sector growth, which could benefit from recent GST rate reductions on cement and certain construction materials.
Pidilite's strong performance in Q2 FY26, despite challenges in the export market, demonstrates the company's resilience and effective strategy in navigating market dynamics. The continued focus on demand generation and portfolio diversification positions Pidilite well for sustained growth in the coming quarters.
Historical Stock Returns for Pidilite Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.85% | -2.93% | -3.10% | -3.96% | -9.28% | +80.72% |
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