Pidilite Industries (PIDILITIND) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue grew to Rs 3,554.44 crore, up 9.8% year-over-year, with standalone revenue at Rs 3,287.31 crore and strong double-digit volume growth in both Consumer & Bazaar (C&B) and B2B segments.

• C&B UVG was 10.4% and B2B UVG 9.9% for Q2, with domestic subsidiaries growing 10.7% and international subsidiaries 4.5%.

• Export business declined due to geopolitical uncertainties and tariffs, while domestic segments and subsidiaries posted robust growth.

• Rural demand continues to outperform urban, but urban demand is recovering.

• Unaudited financial results for Q2 and H1 FY26 were approved by the Board and reviewed by auditors with an unmodified opinion.

Financial highlights

• Q2 FY26: Consolidated net sales Rs 3,554.44 crore (+9.8%), EBITDA Rs 851 crore (+10.7%), PAT Rs 591.23 crore (+8.3%).

• H1 FY26: Consolidated net sales Rs 7,283 crore (+10.2%), EBITDA Rs 1,827.34 crore (+13.3%), PAT Rs 1,263 crore (+13.7%).

• Gross margin improved to 54.3% in Q2, up from 53.8% last year, due to lower input prices, especially VAM.

• Standalone net profit for Q2 FY26 was Rs 583.07 crore, with basic EPS (adjusted for bonus shares) at Rs 5.76.

• Advertising and sales promotion expenses increased by nearly 80% year-over-year.

Outlook and guidance

• Management expects benign input costs, particularly for VAM, to persist for the next 3-6 months.

• EBITDA margin guidance remains within the 20%-24% corridor, with potential to stay at the higher end if input costs remain favorable.

• Double-digit underlying volume growth is expected to continue in the second half, barring unforeseen macro events.

• Optimism for improved domestic environment, supported by favorable monsoons, GST 2.0, and construction sector growth.

• Continued focus on volume-led, profitable growth through brand, supply chain, and people investments.