Transcript of the Earnings Call
PIDILITIND · price
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Pidilite reported strong Q4 FY26 performance with standalone revenue of INR 3,272 crores, up 15.3% in value terms with 15.3% underlying volume growth. Both Consumer & Bazaar (15.4%) and B2B (14.8%) businesses delivered robust growth. EBITDA margin expanded by 280 basis points to 23.4%, with EBITDA growing 31.1%. Full year consolidated revenue reached INR 14,553 crores, up 11.1%, with PAT growth of 17.9%. Management flagged significant raw material inflation of 40-50% weighted average increase due to West Asia conflict, with price increases of 12-15% taken for the Fevicol division in April and May. The company swapped its BuildNext platform for equity stake in JSW One and remains open to exploring further synergies. Management maintained EBITDA margin guidance corridor of 20-24% and committed to reinvesting margin headroom for faster growth.
The strong 15% volume growth beats historical 9-11% range, driven by urban demand buoyancy from GST benefits. However, escalating raw material inflation and West Asia supply disruptions pose margin headwinds for FY27. Price hikes should protect margins but full impact on demand elasticity remains uncertain.