This article first appeared on GuruFocus .
-
Stand-alone Revenue:INR 3,425 crores, growth of 11%.
-
Underlying Volume Growth:9.3% overall; Consumer and Bazaar business at 9.7%; B2B business at 7.4%.
-
Domestic Business Volume Growth:11%.
-
Exports Decline:13.5% decrease.
-
Gross Margins:Improved by 200 basis points.
-
One-time Provision:INR 47 crores stand-alone, INR 52 crores consolidated due to new wage code.
-
Stand-alone EBITDA Margins:Improved by 24 basis points to 4.5%.
-
Profit After Tax:Grew by 12.5%.
-
International Subsidiaries Revenue Growth:6% increase; EBITDA grew by 19%.
-
Consolidated Revenue:Just under INR 3,700 crores, up by 10.2% for the quarter.
Release Date: February 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Pidilite Industries Ltd ( BOM:500331 ) reported a nominal revenue growth of 11% for Q3 FY26, with underlying volume growth at 9.3%.
-
The Consumer and Bazaar business saw a strong underlying volume growth of 9.7%, while the B2B business grew by 7.4%.
-
Domestic business reported an underlying volume growth of 11%, indicating strong performance in the local market.
-
Gross margins improved by 200 basis points due to benign input prices, contributing to a 12.5% growth in profit after tax.
-
International subsidiaries reported a 6% growth in top line and a 19% increase in EBITDA, showcasing strong international performance.
Negative Points
-
Exports declined by 13.5% due to geopolitical challenges, impacting overall volume growth.
-
A one-time provision of INR47 crores was taken due to the new wage code, affecting financial results.
-
Despite increased advertising and sales promotion spending, the overall EBITDA margin improvement was limited to 24 basis points.
-
The domestic subsidiaries reported a marginal decline in EBITDA, indicating challenges in local operations.
-
The geopolitical uncertainty, including conflicts in Russia-Ukraine and the Middle East, continues to pose risks to export performance.
Q & A Highlights
Q: Do you foresee the decline in exports continuing in Q4 and Q1 due to geopolitical challenges? A: Sudhanshu Vats, Deputy Managing Director, stated that while exports were significantly affected in Q3, the situation is expected to improve. The geopolitical challenges are largely behind, and the company has contingency plans to mitigate future impacts.
Q: How is Pidilite managing to maintain strong growth in the Consumer and Bazaar segment? A: Sudhanshu Vats explained that the company is focusing on brand building and expanding its product range. The growth is driven by a mix of new construction, renovation, and repair activities, with a significant portion coming from the latter two.
Q: Are you seeing any market share gains in the waterproofing segment? A: Sudhanshu Vats confirmed that the company is likely regaining market share in waterproofing, driven by strong growth in both retail and project segments. The focus is on providing comprehensive solutions and expanding market presence.
Q: What is the outlook for the tile adhesive category, and can it continue to grow at the current rate? A: Kavinder Singh, Joint Managing Director, stated that the tile adhesive category is growing robustly due to increased penetration. The company is focusing on category creation and expects the growth momentum to continue, supported by product innovation and market expansion.
Q: With benign input costs and strong demand, could Pidilite's EBITDA margins exceed the 20-24% range? A: Sandeep Batra, CFO, mentioned that while margins may appear above the range in certain quarters, the company aims to reinvest gains to drive faster growth. The focus remains on maintaining a balance between profitability and growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
