Pidilite Industries Limited Overview
Pidilite Industries is India's dominant consumer-and-specialty chemicals franchise in adhesives, sealants, waterproofing and construction chemicals. It is built around Fevicol, which over six decades has become close to a generic term for white glue in India. The company's moat is less about chemistry than about channel and influencer control. It sells through a very large network of hardware, paint, plywood and stationery outlets, and it has spent decades building relationships with carpenters, plumbers, masons, painters and contractors, who effectively choose the product at the point of use. Its brands include Fevicol, Fevikwik, M-Seal, Dr. Fixit, Roff, Araldite and Fevicryl. They command premium pricing and generated about 24% consolidated EBITDA margins in FY2026 on revenue of INR 14,601 cr. Pidilite operates an asset-light, cash-generative, nearly debt-free model rated AAA by CRISIL. It is now extending into tile adhesives, wood finishes, electronics and data-centre materials, and adjacent home-improvement categories through joint ventures and venture investments.
What the company does
Pidilite makes and markets adhesives, sealants, waterproofing and construction chemicals, art and craft materials, and industrial specialty chemicals. It reports two operating segments:
Consumer & Bazaar (C&B): About 78% of consolidated segment revenue in FY2026. These are products sold mainly to end-users and tradespeople (carpenters, painters, plumbers, mechanics, households, students, offices) through retail and trade channels. It includes adhesives (Fevicol, Fevikwik, Fevistik), sealants and putties (M-Seal), waterproofing and construction chemicals (Dr. Fixit, Roff tile adhesives), epoxy adhesives (Araldite), and art and craft materials (Fevicryl, Hobby Ideas).
Business-to-Business (B2B): About 22% of consolidated segment revenue in FY2026. This covers industrial adhesives, synthetic resins and emulsions, organic pigments and pigment preparations, project-oriented construction chemicals, and surfactants and textile auxiliaries. Customers are in packaging, textiles, joinery, printing inks, paper and leather. (Segment definitions are from the company's financial disclosures as summarised by MarketScreener.)
Business and revenue model
| Revenue type | Share | Commentary |
|---|---|---|
| Branded product sales | Almost all revenue | The core model is branded, packaged, low-ticket consumables with high repeat purchase. |
| Services | Small; not separately disclosed | Waterproofing application services through Dr. Fixit-linked applicator networks and the Nina Percept subsidiary. Exact share not disclosed. |
| Subscription | — | Not applicable |
| Licensing | Minor | Trademark licence for Araldite in the Middle East, Africa and ASEAN, acquired in the 2020 Huntsman deal. Royalty income not separately disclosed. |
The economics follow a fairly consistent pattern. Pidilite buys commodity petrochemical inputs, chiefly vinyl acetate monomer (VAM), along with polymers, solvents and pigments. It converts them into differentiated, branded formulations and sells them through a fragmented trade at gross margins of roughly 53–54% (consolidated Q1 FY27 gross margin 53.3%, against 54.0% in Q1 FY26, per a PTI report on the company's earnings statement). Profitability therefore depends heavily on the spread between VAM and other input costs and Pidilite's pricing power. In FY2026, lower input costs widened gross margins. In Q1 FY27, inflation linked to the West Asia crisis narrowed them, and the company raised prices across categories in response.
Value-chain position
Pidilite is a downstream formulator and brand owner. It does not produce commodity monomers at scale. Its value-add comes from formulation IP, packaging and SKU design for low price points, distribution reach, and education and loyalty programmes for tradespeople. Upstream, it is exposed to global VAM and petrochemical cycles. Downstream, demand follows Indian real-estate activity, home renovation, furniture and woodwork, and plumbing and waterproofing replacement cycles.
Customer types and end-markets
| End-market | Primary brands | Customer / influencer |
|---|---|---|
| Woodworking and furniture | Fevicol (SH, Marine, Hi-Per, SPEEDX variants) | Carpenters, contractors, furniture OEMs |
| Waterproofing, roofs and walls | Dr. Fixit | Masons, contractors, homeowners, builders |
| Tiling and flooring | Roff, Pidilite Litokol (JV) | Tile installers, builders |
| Plumbing and repair | M-Seal | Plumbers, households |
| Instant and general repair | Fevikwik, Araldite | Households, mechanics |
| Stationery, art and craft | Fevistik, Fevicryl, Hobby Ideas | Students, hobbyists, schools |
| Wood finishes | ICA Pidilite (Italian coatings technology) | Carpenters, polishers, premium furniture |
| Industrial | Industrial adhesives, pigments, resins | Packaging, textiles, inks, leather, paper |
| Electronics and data centres (new) | Thermal and energy-efficient materials | Data-centre and electronics manufacturers. Company news in February 2026 highlighted this focus. |
Company self-description versus independent characterisation
Company's description (paraphrased from investor materials): Pidilite calls itself a leading manufacturer of adhesives, sealants and construction chemicals. Its brands include Fevicol, M-Seal, Fevikwik, Dr. Fixit and Fevicryl. It emphasises growth driven by underlying volume growth (UVG), and in recent communications has described a shift from selling products to delivering complete solutions.
Independent characterisation: Pidilite is best seen as a consumer-staples-like franchise with industrial cost exposure. Three features stand out:
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Category leadership so strong that its main product is used as the category's name.
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An influencer-led distribution system that competitors with comparable capital (Astral, Asian Paints, Saint-Gobain, Jubilant) have so far failed to displace in core adhesives.
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A long runway in construction chemicals, where India remains under-penetrated.
Because the market pays a premium for this franchise (P/E of about 60–67x in 2026), returns depend on sustaining double-digit volume growth rather than on margin expansion alone.
Strategy
Stated strategic themes (paraphrased from FY2026 investor communications)
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Volume-led core growth. Underlying volume growth is the main KPI, and management highlights UVG every quarter. FY2026 UVG was 11.8% (company / CNBC-TV18).
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Strengthening the core while innovating for new-age consumers. This was the title theme of the Q3 FY2026 earnings presentation.
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From products to solutions. Moving from selling SKUs to complete solutions such as waterproofing systems, tiling systems and application services (Pidilite media coverage, 2026).
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Riding India's urbanisation and rising-income wave. The company positions itself to benefit from housing, renovation and consumption upgrading (Pidilite media page, 2026).
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Brand investment. Advertising and promotion spend was raised to drive demand (Q4 FY2025: 5.4% of net sales), and media reports describe further increases in ad spend as margins improved.
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Supply-chain resilience. Investment in upgrading and building manufacturing capacity, a resilient supply chain, and price increases to offset input inflation (Q1 FY2026 and Q1 FY2027 commentary).
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New platforms. A Chief Business Officer for New Businesses was appointed in February 2026. Initiatives include energy-efficient solutions for data centres and electronics manufacturing (February 2026), tile adhesives and grouts (Litokol JV), stone care (Tenax JV), wood finishes (ICA Pidilite), walling (C-Techos), and educational toys and home décor through Pidilite Ventures.
Strategic initiatives in the last 24 months
| Date | Initiative | Detail |
|---|---|---|
| Apr 2025 | Leadership transition | Vats becomes MD and Singh becomes JMD; a two-leader structure for the "next phase" |
| May 2025 | Excel Marco acquisition | — |
| Aug 2025 | Capital return | 1:1 bonus plus INR 10 special dividend |
| Oct 2025 | Walling platform consolidation | 100% of C-Techos Walling |
| Oct 2025 | Imagimake investment | Up to INR 34 cr (educational toys) |
| Nov 2025 | MagicDecor investment via PVPL | Premium home décor |
| Jan 2026 | Portfolio clean-up | Pepperfry stake swapped for TCC Concept |
| Feb 2026 | New Businesses leadership | Rajesh Joshi appointed |
| Feb 2026 | Data centre and electronics focus | Energy-efficient solutions push (company news) |
| Feb 2026 | East Africa expansion | Tanzania 55% JV |
| Apr 2026 | Portfolio clean-up | BuildNext stake to be swapped for JSW One Platforms shares (completion targeted by 10 August 2026) |
| Q1 FY2027 | Pricing actions | Price increases across categories to offset West Asia–linked inflation |
| Aug 2026 | Exit | Bangladesh step-down subsidiary liquidated |
Cost programmes: No named cost-transformation programme with published savings targets was identified.
Medium-term targets and guidance
Pidilite does not issue formal numeric revenue or EPS guidance. Market commentary refers to an EBITDA margin "corridor" of roughly 20–24%. Q1 FY2027's 26.6% margin (CompoundingAI's calculation; ICN reported 26.3%) was described as above that corridor. Qualitative outlook from the Q4 FY2026 and Q1 FY2027 commentary (paraphrased): management expects domestic demand momentum to continue, is watching raw-material inflation, freight and supply disruptions, and is confident proactive pricing and cost actions can sustain growth.
Products & Services
Launch years, specifications and list prices are given only where they could be verified. Pidilite does not disclose SKU-level pricing in filings. Prices are maintained trade-wide and revised by price increases, such as those across categories in Q1 FY2027.
Consumer & Bazaar — Adhesives
| Brand / product | Description and capability | Target customer | Notes |
|---|---|---|---|
| Fevicol SH | PVA (polyvinyl acetate) synthetic resin white adhesive for wood and laminates; the flagship product | Carpenters, contractors | Launched 1959 as the original Fevicol |
| Fevicol Marine | Waterproof wood adhesive for wet areas (kitchens, bathrooms) | Carpenters, premium furniture | Premium variant |
| Fevicol Hi-Per / SPEEDX variants | Faster-setting, higher-performance wood adhesives | Professional carpenters | — |
| Fevicol MR | General-purpose white adhesive for paper, wood and craft | Households, schools | Price-point SKU |
| Fevicol contact adhesives (SR series and similar) | Synthetic rubber contact adhesives for laminates, foam, leather | Carpenters, footwear, upholstery | — |
| Fevikwik | Cyanoacrylate instant adhesive in single-use packs | Households, mechanics | Very low unit price |
| Fevistik | Glue stick for paper | Students, offices | Stationery channel |
| Araldite | Two-part epoxy adhesives (Standard and quick-set versions) | Households, mechanics, industrial repair | Acquired from Huntsman in 2020 for about INR 2,100 cr |
| Fevitite / other specialty adhesives | Specialty epoxy and rubber adhesives | Repair and DIY | — |
Consumer & Bazaar — Sealants, putties and repair
| Brand | Description | Target customer | Notes |
|---|---|---|---|
| M-Seal | Epoxy putty and sealant for plumbing leaks, cracks and general repair | Plumbers, households | Acquired around 2000 |
| Silicone and acrylic sealant ranges | Sealants for glazing, sanitary-ware and joints | Plumbers, glaziers, contractors | — |
| Steelgrip and related tapes (where applicable) | Electrical and insulation tapes | Electricians | — |
Consumer & Bazaar — Waterproofing and construction chemicals
| Brand / product | Description | Target customer | Notes |
|---|---|---|---|
| Dr. Fixit (umbrella brand) | India's leading retail waterproofing brand: roof coatings, integral liquid waterproofing compounds, cementitious coatings, crack fillers, exterior wall coatings | Masons, contractors, homeowners | Flagship of the construction-chemicals platform |
| Dr. Fixit LW+ (integral waterproofing) | Additive mixed into concrete and plaster | Masons | Long-standing high-volume SKU |
| Dr. Fixit roof and terrace coatings (e.g., Roofseal) | Elastomeric roof waterproofing coatings | Homeowners, contractors | — |
| Dr. Fixit Raincoat / Newcoat (exterior) | Waterproof exterior wall coatings | Painters, homeowners | — |
| Roff | Tile adhesives, grouts, stone fixing | Tile installers, builders | Tile adhesives are a structurally under-penetrated category in India |
| Pidilite Litokol | Premium tile adhesives and epoxy grouts using Italian technology | Premium projects | JV formed 2023 |
| Tenax Pidilite | Stone care, polishing and protective chemicals | Stone fabricators | JV formed 2023 |
| Nina Percept | Waterproofing application and service solutions | Builders, institutions | Services-led |
| C-Techos Walling | Walling solutions | Builders | Wholly owned from November 2025; nil turnover in FY2025 |
Consumer & Bazaar — Wood finishes and coatings
| Brand | Description | Target customer | Notes |
|---|---|---|---|
| ICA Pidilite | Italian polyurethane and water-based wood finishes made in India | Polishers, premium furniture | ICA Pidilite was the joint venture's first manufacturing site outside Italy (CXO Digital Pulse) |
| Other wood-finish ranges | Lacquers and polishes | Carpenters, polishers | — |
Consumer & Bazaar — Art, craft and stationery
| Brand | Description | Target customer |
|---|---|---|
| Fevicryl | Acrylic fabric and hobby colours, art supplies | Hobbyists, students, homemakers |
| Hobby Ideas | Art and craft retail brand and stores | Hobbyists |
| Fevicol craft and school products | School glues and craft kits | Students, schools |
| Imagimake (investment) | Educational toys; up to INR 34 cr investment in October 2025 | Children and parents |
Business-to-Business portfolio
| Product line | Description | Target industries |
|---|---|---|
| Industrial adhesives | Packaging, lamination, bookbinding, footwear and woodworking adhesives | Packaging, printing, footwear, furniture OEMs |
| Synthetic resins and emulsions | Polymer emulsions for paints, textiles and construction | Paints, textiles, construction |
| Organic pigments and pigment preparations | Pigments and dispersions for inks, coatings, plastics and textiles | Printing inks, paints, plastics, textiles |
| Construction chemicals (projects) | Waterproofing, admixtures and flooring for large projects (including CIPY PU flooring) | Infrastructure, real estate, industrial plants |
| Surfactants and textile auxiliaries | Processing chemicals | Textiles, leather |
| Electronics and data-centre materials | Energy-efficient and thermal-management solutions (strategic focus disclosed February 2026) | Data centres, electronics manufacturing |
| Distributed third-party products | Sole Indian distributor of CollTech Group's product range | Electronics, industrial |
Financial Narrative
Income statement (consolidated, INR cr)
Sources and notes: - Revenue FY2024 and FY2025: Business Standard / Capital Market (INR 12,382.99 cr and INR 13,140.31 cr). FY2026: INR 14,600.83 cr (DSIJ, from the filing). FY2022 and FY2023: company annual reports as recalled. Equitymaster gives FY2024 revenue as INR 12,523 cr including other income, so verify FY2022–FY2023 against the annual reports.
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EBITDA FY2024: INR 2,707 cr (Q4 FY2024 press release). FY2025: INR 3,013 cr (FY2025 press release). FY2023 is derived from FY2024's reported 36% growth. FY2026 is derived as 24.2% consolidated margin × INR 14,553 cr net sales (DSIJ / Bajaj Broking). It is consistent with quarterly EBITDA of INR 941 cr, 851 cr, about 897 cr and 833 cr.
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PBT FY2024: INR 2,451 cr (press release). FY2025: INR 2,848 cr (Angel One). Reported FY2025 PBT after exceptional items was INR 2,822.70 cr (DSIJ), so the two FY2025 figures differ by about INR 25 cr of exceptional items. FY2026: INR 3,320.17 cr (DSIJ). FY2023 is derived from FY2024's reported 42% growth.
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Net profit attributable: FY2022 INR 1,206.8 cr (Equitymaster); FY2023 INR 1,288.9 cr total PAT (Equitymaster); FY2024 INR 1,729.38 cr after an INR 72 cr Brazil divestment loss (Business Standard); FY2025 INR 2,076.24 cr; FY2026 INR 2,448.92 cr. The company's headline PAT of INR 1,747 cr, 2,096 cr and 2,471 cr includes non-controlling interests and, for FY2024, excludes the exceptional item.
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EPS is restated for the September 2025 1:1 bonus (ROIC.ai series). Reported pre-bonus EPS was INR 34.01 for FY2024 and INR 40.82 for FY2025 (Simply Wall St).
Margins and growth (consolidated)
Derived from the table above. FY2025 underlying (comparable) net-sales growth was 7.6% to 8% excluding Pidilite USA and Pulvitec Brazil. FY2025 standalone EBITDA margin was 23.6% (24.6% in FY2026). The FY2023 EBITDA margin uses the derived FY2023 EBITDA.
Gross margin: Expanded by 254 bps in FY2025 (standalone, because of lower input costs; FY2025 press release). Expanded about 100 bps standalone and 160 bps consolidated in Q4 FY2026. Contracted 70 bps to 53.3% (consolidated) in Q1 FY2027 because of West Asia–linked inflation.
CAGR (FY2022–FY2026, derived): Revenue about 10.1% a year. Attributable net profit about 19.3% a year. EPS (bonus-adjusted) about 19.2% a year.
Commentary. The five-year record has three phases:
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FY2022–FY2023, input-cost shock. Revenue grew strongly in value terms (FY2023 +19%) as Pidilite passed on VAM inflation. But EBITDA margin collapsed to about 17% and profit grew only about 7%.
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FY2024–FY2025, margin repair. Input costs normalised and gross margins recovered by several hundred basis points. With price cuts passed through, value growth was modest (5–6%) while UVG stayed around 9–10%. EBITDA rose 36% in FY2024 and 11% in FY2025. Advertising and promotion was raised (Q4 FY2025 at 5.4% of net sales against 4.7% a year earlier) to reinvest the gains in demand.
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FY2026–Q1 FY2027, volume-led acceleration. Revenue growth returned to double digits (FY2026 +11.1%; Q4 +14.1%; Q1 FY2027 +21.3%) with EBITDA margin peaking at 24.2% for FY2026 and 26.3% in Q1 FY2027. The key watch-point is that Q1 FY2027 margins rose through operating leverage even though gross margin was under pressure. This is a sign of pricing power, but also a test of how sustainable these margins are if input inflation continues.
Quarterly trajectory (consolidated, INR cr)
Sources: Business Standard (Q1 FY2026); Q2 FY2026 press release (EBITDA INR 851 cr consolidated); Fyers / Kotak Neo (Q3 revenue and PAT); company and DSIJ (Q4); ICN / PTI / Kotak Neo (Q1 FY2027). Q3 FY2026 EBITDA and attributable PAT are derived as balancing figures to full-year totals. Q2 attributable PAT is shown at the reported INR 584.6 cr consolidated figure.
Balance sheet
The table records what is verifiable.
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Segment Overview
| Segment | Contents | Representative products |
|---|---|---|
Consumer & Bazaar (C&B) | Adhesives, sealants, art and craft materials, construction and paint chemicals sold to end-consumers and tradespeople | Fevicol, Fevikwik, Fevistik, M-Seal, Dr. Fixit, Roff, Araldite (consumer), Fevicryl, Hobby Ideas, wood finishes |
Business-to-Business (B2B) | Industrial adhesives, synthetic resins, organic pigments and preparations, project construction chemicals, surfactants | Industrial adhesive ranges, pigment dispersions, emulsions, project waterproofing and flooring (including CIPY) |
Others (historical) | A small residual segment reported until about FY2024 | Q4 FY2024 "Others" sales were INR 12 cr, down 43% year on year (Business Standard, May 2024) |
Segment revenue (INR Cr, consolidated, before inter-segment elimination)
| Segment revenue (INR Cr, consolidated, before inter-segment elimination) | FY2025 | FY2026 |
|---|---|---|
Consumer & Bazaar | 10,389 | 11,574 |
Business-to-Business | 2,995 | 3,211 |
Segment revenue (INR Cr)
| Segment revenue (INR Cr) | Q1FY2026 | Q1FY2027 |
|---|---|---|
Consumer & Bazaar | 3,007 | 3,681 |
Business-to-Business | 807 | 918 |
Results by Segment and Segment Margins & Growth (%)
| Metric (standalone) | 9MFY2025 | 9MFY2026 |
|---|---|---|
C&B EBIT (INR Cr) | 2,287 | 2,597 |
C&B EBIT margin (%) | 30.7 | 31.4 |
B2B EBIT (INR Cr) | 335 | 366 |
B2B EBIT margin (%) | 17.6 | 17.9 |
Revenue by Segment (%) and Segment Margins & Growth (%)
| Metric (%) | Q1FY2026 | Q2FY2026 | Q3FY2026 | Q4FY2026 | Q1FY2027 |
|---|---|---|---|---|---|
Overall UVG | 9.9 | 10.3 | 9.0 | 15.3 | 11.3 |
C&B UVG | 9.3 | 10.4 | 9.7 | 15.4 | — |
B2B UVG | 12.6 | 9.9 | 7.4 | 14.8 | — |
C&B revenue growth | — | 10.8 | 12.4 | 15.9 | 22.4 |
B2B revenue growth | — | 8.7 | 2.9 | 9.3 | 13.8 |
Group Entities
| Entity | Status | Function |
|---|---|---|
| — | Wholly owned (acquired 2020) | Araldite business, Indian subcontinent |
Cipy Poly Urethanes Pvt Ltd | 100% (since April 2021) | PU coatings and industrial flooring |
Nina Percept Pvt Ltd | Subsidiary | Waterproofing application services |
Nina Percept (Bangladesh) Pvt Ltd | Step-down subsidiary; voluntary liquidation effective 19 August 2026 | Exited |
ICA Pidilite Pvt Ltd | JV / subsidiary with ICA SpA (Italy) | Wood coatings and finishes |
Pidilite Litokol | JV with Litokol (Italy), 2023 | Tile adhesives, grouts |
Tenax Pidilite | JV with Tenax (Italy), 2023 | Stone care and treatment |
Pidilite C-Techos Walling Ltd | 100% (from November 2025) | Walling solutions (nil turnover in FY2025) |
Pidilite Ventures Pvt Ltd (PVPL) | Wholly owned | Venture and strategic investments |
Bhimad Commercial Company Pvt Ltd | Subsidiary | — |
Pidilite International Pte Ltd (Singapore) | Wholly owned | Overseas holding company |
Pidilite Middle East Ltd | Subsidiary | Middle East operations (INR 7.07 cr invested in FY2025) |
Pidilite Industries Egypt SAE | Subsidiary | North Africa |
Pidilite Insignia Ltd (Tanzania) | 55% JV (24 February 2026) | Construction chemicals and waterproofing, East Africa |
Pidilite USA; Pulvitec Brazil | Excluded from FY2025 comparisons; Brazil divested FY2024 | Exited or deconsolidated (US status not fully verified) |
Income Statement and Per-Share Data
| Metric (INR Cr, consolidated) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue from operations | 9,921 | 11,799 | 12,383 | 13,140 | 14,601 |
Net sales (as defined by company) | — | — | 12,337 | 13,094 | 14,553 |
EBITDA before non-operating income | — | 1,990 | 2,707 | 3,013 | 3,522 |
Profit before tax and exceptional items | — | 1,726 | 2,451 | 2,848 | 3,320 |
Net profit attributable to owners | 1,207 | 1,289 | 1,729 | 2,076 | 2,449 |
Total PAT including minorities, pre-exceptional (company headline) | — | — | 1,747 | 2,096 | 2,471 |
Basic EPS, bonus-adjusted (INR) | 11.88 | 12.52 | 17.00 | 20.41 | 24.07 |
Margin Analysis (%)
| Metric (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue growth YoY | — | 18.9 | 4.9 | 6.1 | 11.1 |
EBITDA margin on net sales | — | 16.9 | 21.9 | 23.0 | 24.2 |
Net margin (attributable on revenue from operations) | 12.2 | 10.9 | 14.0 | 15.8 | 16.8 |
Net profit growth YoY | — | 6.8 | 34.2 | 20.1 | 17.9 |
Income Statement
| Metric (INR Cr) | Q1FY2026 | Q2FY2026 | Q3FY2026 | Q4FY2026 | Q1FY2027 |
|---|---|---|---|---|---|
Revenue from operations | 3,753 | 3,554 | 3,710 | 3,583 | 4,552 |
EBITDA | 941 | 851 | 897 | 833 | 1,194 |
PAT including minorities | 678 | 585 | 624 | 584 | 884 |
PAT attributable to owners | 672 | 585 | 613 | 579 | 872 |
Financial Analysis
| Item | Status / value | Source |
|---|---|---|
Paid-up equity capital | INR 101.78 cr (30 June 2026) | Q1 FY2027 filing via FPJ |
Shares outstanding | About 101.77 crore | TipRanks; ESOP allotments of 9,060 shares on 16 April 2026 and 15,000 shares on 13 July 2026 |
Book value per share | INR 115.08, implying equity of about INR 11,710 cr | Sharekhan quote page, September 2026. Aggregator figure; verify against the FY2026 Annual Report. |
Total debt | Negligible; "conservative capital structure... negligible leverage" per CRISIL | CRISIL rating rationale, 2 September 2026 |
Rated bank lines | INR 367 cr bank facilities plus an INR 250 cr short-term debt programme | CRISIL |
Goodwill and intangibles | Material, mainly from the 2020 Araldite acquisition (about INR 2,100 cr consideration). | — |
Financial Analysis — Operating cash flow FY2022–FY2026
| Item | Status |
|---|---|
Operating cash flow FY2022–FY2026 | Aggregator free-cash-flow-per-share series (ROIC.ai, bonus-adjusted): FY2022 5.71, FY2023 10.35, FY2024 21.29, FY2025 18.03, FY2026 21.97 INR, implying FY2026 FCF of about INR 2,235 cr (derived, aggregator-based). |
Capex | Management has spoken about investing in upgrading and building new manufacturing facilities (Q1 FY2026 commentary). |
Dividends paid | FY2026 declared payout ratio 70.2% of standalone profit (DSIJ / Bajaj Broking) |
Financial Analysis — ROE
| Ratio | Value | Basis |
|---|---|---|
ROE (FY2026) | About 21–22% | Derived: INR 2,449 cr attributable PAT ÷ about INR 11,000–11,700 cr equity (aggregator book value) |
ROA | 14.9% (FY2024) against 12.7% (FY2023) | Equitymaster FY2024 analysis |
Debt / equity | About 0.0x | CRISIL ("negligible leverage") |
Net debt / EBITDA | Negative (net cash) | CRISIL |
Entity group growth (%)
| Entity group growth (%) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Standalone net sales | 5.0 | 8.1 | 11.8 |
Domestic subsidiaries net sales | — | — | 7.6 |
International subsidiaries net sales | 7.8 | — | 6.1 |
Subsidiary growth (%)
| Subsidiary growth (%) | Q1FY2026 | Q2FY2026 | Q3FY2026 | Q4FY2026 |
|---|---|---|---|---|
Domestic subsidiaries | 11.5 | 10.7 | 8.6 | 5.3 |
International subsidiaries | 6.4 | 4.5 | 5.6 | 7.8 |
Data Point Details
| Data point | Value | Date / source |
|---|---|---|
Recent close | INR 1,566.90 | 11 Sep 2026 (Sharekhan) |
52-week high | About INR 1,707.50 | Aug 2026 (IIFL / Sharekhan) |
52-week low | INR 1,259.45 | 6 Apr 2026 (MoneyWorks4Me) |
Post-Q4 FY2026 | About INR 1,488–1,516 | 8 May 2026 |
Post-Q1 FY2027 | INR 1,620 (BSE close) | 4 Aug 2026 |
1-year return | About +7.3% | To 27 Aug 2026 (Anand Rathi) |
3-year return | About +30% | To Aug 2026 (Anand Rathi) |
F&O | Stock is in the F&O segment; lot size 500 | Motilal Oswal (Jul 2026) |
Valuation Multiples
| Multiple | Pidilite | Asian Paints | Astral | Basis |
|---|---|---|---|---|
P/E (trailing) | About 60–67x | About 59x | About 80x | Pidilite: aggregator P/E of 63.25 (27 Aug 2026) and 66.93 (17 Aug 2026); peers derived from FY2026 PAT and August 2026 prices (approximate) |
EV/EBITDA (TTM) | About 41–42x | — | — | Derived: market cap about INR 1.59 lakh cr ÷ TTM EBITDA about INR 3,775 cr (FY2026 3,522 + Q1 FY2027 1,194 − Q1 FY2026 941); net cash ignored |
EV/Sales (TTM) | About 10.3x | — | — | Derived: TTM revenue about INR 15,400 cr |
P/B | About 15–16x | — | — | Anand Rathi 15.32 (Aug 2026); IIFL 16.13 |
Dividend yield | About 1.0–1.4% | — | — | Aggregator range (Sharekhan 1.37%) |
Dividend per share (INR)
| Dividend per share (INR) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Declared, as reported (pre-bonus face) | 10.0 | 11.0 | 16.0 | 20.0 | 21.5 |
Bonus-adjusted | 5.0 | 5.5 | 8.0 | 10.0 | 16.5 |
Credit Ratings
| Agency | Rating | Outlook | Date |
|---|---|---|---|
CRISIL | AAA (long-term bank facilities); A1+ (short-term and INR 250 cr short-term debt) | Stable | Reaffirmed 2 Sep 2026 |
Moody's / S&P / Fitch | Not rated (no international ratings identified) | — | — |
Analyst Conclusions
Management guidance (qualitative)
Management does not give numeric guidance. In the Q4 FY2026 and Q1 FY2027 communications, it signalled:
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confidence that domestic demand momentum will continue;
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active management of input-cost inflation, freight and supply disruption through price increases and cost actions;
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continued investment in brands and capacity.
Consensus growth expectations
Before Q1 FY2027, consensus implied low-double-digit revenue growth and roughly 10–15% EPS growth (Simply Wall St forecasts about 11% annualised revenue growth). Q1 FY2027 (revenue +21%, EPS +30%) ran well ahead of that pace.
Bull-case arguments
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Volume acceleration is structural, not cyclical. UVG rose from about 9–10% to 15.3% in Q4 FY2026 and held at 11.3% in Q1 FY2027 despite price increases. This points to category creation in waterproofing and tile adhesives on top of core adhesives.
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Pricing power plus operating leverage. In Q1 FY2027, EBITDA rose 26.9% on a gross-margin contraction, which supports sustained margins of 24%+ even through an inflationary spell.
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Optionality from new platforms, including data-centre and electronics materials, the Italian JVs and African expansion, could add growth vectors not in consensus. They are funded from a net-cash, AAA balance sheet.
Bear-case arguments
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Valuation already discounts the bull case. At about 60–67x trailing P/E and about 41x EV/EBITDA, any slowdown in UVG toward high single digits could compress multiples. The post-Q4 consensus target of about INR 1,629 was close to the current price.
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Input-cost cyclicality. The FY2023 margin trough (about 17%) shows how fast VAM spikes can erode profits. The Q1 FY2027 gross-margin squeeze could deepen if West Asia disruption persists.
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Competitive erosion at the margin. Astral's domestic adhesives are growing about 25%, global construction-chemical groups are consolidating, and paint majors are pushing waterproofing. Together these could cap C&B pricing and raise advertising and promotion intensity.
Catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing |
|---|---|
| Q2 FY2027 results (statutory deadline 14 November 2026) | Oct–Nov 2026 |
| Gross-margin path versus VAM and crude prices; extent of further price increases | Each quarter |
| UVG staying at or above 10% against high bases | Q2 FY2027 – Q1 FY2028 |
| B2B export recovery after the Middle East disruption | H2 FY2027 |
| Revenue scale-up of new businesses (data centres, Litokol, Tenax, Tanzania) | FY2027 |
| Capital allocation: large M&A versus special payouts, given net cash | Ongoing |
| Leadership: clarity of the MD / JMD division of responsibilities; CFO and New Businesses executive bench | Ongoing |
| FY2026 Annual Report / BRSR details (employees, R&D, ESG targets) | Already published; to be analysed |
Analyst verdict
Pidilite enters the second half of FY2027 with its strongest operating momentum in several years. FY2026 delivered 11.1% revenue growth, 11.8% underlying volume growth, a 24.2% consolidated EBITDA margin and 18% attributable profit growth to INR 2,449 cr. Q1 FY2027 went further: revenue +21%, EBITDA +27% and PAT +30%, achieved while absorbing a 70 bps gross-margin hit from West Asia–linked input inflation. That combination of volume growth, pricing power and operating leverage is what investors pay a premium for, and it is now visible in the numbers rather than only in the narrative.
The franchise itself is beyond serious dispute. Category-defining brands, an influencer-led distribution system that well-capitalised rivals have struggled to dislodge, a C&B segment earning about 31% EBIT margins, and a net-cash, AAA-rated balance sheet make Pidilite one of the highest-quality consumer franchises in Indian equities. The leadership handover from Bharat Puri to Sudhanshu Vats and Kavinder Singh has, so far, been smooth. The new team is visibly pruning sub-scale bets (Brazil, Bangladesh, the Pepperfry and BuildNext swaps) while building new platforms (data centres, Italian JVs, Africa).
The debate is about price, not quality. At about 60–67x trailing earnings, the stock already assumes sustained double-digit volume growth and margins at or above 24%. B2B remains a lower-margin, export-sensitive drag, and challengers in adhesives and construction chemicals are investing heavily. The base case is therefore earnings compounding in the high teens, with returns roughly tracking earnings rather than gaining from a re-rating. A position is best sized around confirmation that UVG stays at or above 10% and that gross margins stabilise as input costs normalise. Sustained UVG above 12% alongside material new-business revenue would argue for upside to the bull case. A VAM spike or a slip to single-digit volumes would justify caution.
End of dossier. All figures are in INR unless stated. "Derived" figures are calculated from disclosed inputs and should be reconciled to the FY2026 Annual Report before use in valuation models.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background | Education |
|---|---|---|---|
M B (Madhukar) Parekh | Executive Chairman | Promoter-family leader; long-standing chairman following the founder | — |
Sudhanshu Vats | Managing Director (since 10 April 2025) | Joined September 2021 as Deputy MD. Previously MD and CEO of EPL Ltd (2020–21), Group CEO and MD of Viacom18 (8 years), about 20 years at Hindustan Unilever, VP Marketing at BP Castrol India (2004–05); chaired CII's National Media and Entertainment Committee | B.Tech (Mechanical), NIT Kurukshetra; PGDM, IIM Ahmedabad |
Kavinder Singh | Executive Director and Joint Managing Director (since April 2025) | Previously MD and CEO of Mahindra Holidays and Resorts India; earlier CEO of Consumer Products at Pidilite until 2014 | — |
Sandeep Batra | Chief Financial Officer | — | — |
Rajesh Joshi | Chief Business Officer – New Businesses (from 2 February 2026) | Former MD and CEO of Everest Industries; former CEO of ICA Pidilite; earlier roles at Bharti Airtel, Future Group, Asian Paints | — |
Manisha Shetty | Company Secretary | Signs exchange filings (2025–2026) | — |
Chief Marketing Officer | — | Formerly Chief of Marketing and E-Commerce, ICICI Prudential Life | — |
Governance Overview
| Attribute | Status |
|---|---|
Promoter-family directors | M B Parekh (Executive Chairman) and A N Parekh (re-appointed by rotation at the 2023 AGM). |
Independent directors | Board meets the SEBI LODR requirement of at least 50% independent directors when the chairman is an executive. Historical independents included B S Mehta and Uday Khanna, whose terms ran to March/April 2024. |
Chair / CEO separation | Separate roles (Executive Chairman and MD), but the Chairman is an executive promoter, not independent |
Committees | Audit; Nomination & Remuneration; Stakeholders' Relationship; CSR; Risk Management (statutory under SEBI LODR). |
Shareholding Trend
| Holder category (%) | Jun-2025 | Sep-2025 | Dec-2025 | Mar-2026 |
|---|---|---|---|---|
Promoters | 69.36 | 69.33 | 69.33 | 69.32 |
Foreign institutions (FII/FPI) | 12.13 | 12.17 | 12.00 | 11.75 |
Domestic institutions (incl. MFs) | 9.16 | 9.10 | 9.26 | 9.65 |
of which mutual funds | 4.64 | 4.61 | 4.56 | 4.34 |
Retail and others | 9.35 | 9.40 | 9.41 | 9.29 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Relevance |
|---|---|---|
Wood adhesives (C&B) | Jubilant Agri & Consumer Products (Jivanjor, Vamicol) | Main domestic challenger in PVA wood adhesives |
Wood and general adhesives | Astral Ltd (Resinova, Seal It; adhesives within its Paints & Adhesives segment) | Aggressive diversified challenger |
Instant and epoxy adhesives | Henkel (Loctite, Pattex) | Global major; strong in industrial and DIY |
Industrial and consumer adhesives | 3M India | Tapes, specialty adhesives |
Industrial adhesives (B2B) | H.B. Fuller; Bostik (Arkema) | Packaging and industrial adhesives |
Waterproofing | Asian Paints (SmartCare); Berger Paints; other paint majors | Paint-channel waterproofing |
Construction chemicals | Sika; Saint-Gobain (Weber; Fosroc, acquired 2025); MYK Laticrete; Ardex Endura; BASF / Master Builders (MBCC, now part of Sika) | Project and retail construction chemicals |
Tile adhesives | MYK Laticrete; Saint-Gobain Weber; Ardex Endura; Asian Paints; Astral | Fast-growing under-penetrated category |
Art and stationery | Kokuyo Camlin; DOMS Industries | Art materials and school supplies |
Wood finishes | Asian Paints; Akzo Nobel India (now JSW-controlled); Sirca; ICA competitors | PU and wood coatings |
Peer Comparison FY2026
| Company | FY2026 revenue | YoY revenue growth | FY2026 net profit | Net margin | Notes |
|---|---|---|---|---|---|
Pidilite Industries | 14,601 | 11.1% | 2,449 | 16.8% | EBITDA margin 24.2% |
Asian Paints | 35,584 | 5.0% | 4,325 | 12.2% | Paints-led; competes in waterproofing, adhesives, wood finishes |
Astral Ltd | 6,569 | 12.6% | 535 | 8.1% | Pipes-led; Paints & Adhesives Q4 FY2026 revenue INR 554 cr (+21.9%) |
