Synopsis:
Shares plunged 51.5% due to the 1:1 bonus issue record date, reflecting price adjustment. Strong Q1 growth, robust rural demand, market leadership, and strategic expansion underscore healthy financial performance and long-term growth prospects despite short-term stock volatility.
The shares of the prominent manufacturer of industrial adhesives plummeted by up to 51.50 percent in the morning session, as today is the record date for the issue of bonus shares to the eligible shareholders.
With a market capitalization of Rs 1,52,250.02 crore, the shares of Pidilite Industries Ltd were trading at Rs 1,494.75 per share, decreasing around 1.59 percent as compared to the previous closing price of Rs 1,518.90 apiece.
Bonus Recorded date
Pidilite Industries’ shares dropped 51.50 percent on 23 September 2025, due to the 1:1 bonus issue record date. The sharp decline reflects the stock adjusting for the bonus allotment. Approved on 6 August 2025. This step aligns with SEBI norms and aims to boost liquidity and investor confidence.
Operational & Financial Highlights
Pidilite Industries Ltd commands a dominant market share of approximately 70% in India’s branded adhesives segment, with its flagship brand Fevicol leading the category and becoming almost synonymous with adhesives in the country.
The company reported solid growth in Q1FY26, with revenue rising 11 percent to Rs 3,753 crore on a YoY basis and net profit increasing 19 percent to Rs 678 crore in the same period. Strong earnings indicate improved operational efficiency and healthy demand, reflecting consistent financial performance and reinforcing confidence in the company’s growth trajectory.
The company’s state-wise performance shows easing headwinds in Gujarat and Andhra Pradesh, though competitive pressure persists, especially in Hyderabad’s tile adhesives market. Kerala faces ongoing challenges. Rural growth continues to outpace urban, driven by a strong demand-generation model, expanded direct coverage, and initiatives like PKDs (Pidilite Ki Duniya) and DFCs (Dr. Fixit Centers), supporting sustained market penetration.
Also read: 1:1 Bonus and Stock Split: FMCG stock hits upper circuit after board approves bonus & share split
The company expects EBITDA margins to remain within the 20–24% guidance range. Q1 margins are unusually high at over 25%, with a likely normalization throughout the year. Favorable input costs increase the likelihood of higher-end margins. Advertising and sales promotions are flexible, managed according to brand and business requirements rather than quarterly targets, ensuring strategic spending.
The management remains highly confident, driven by consistent, strong volume growth and robust rural-rurban distribution expansion. Their focus on innovation, premiumization, and disciplined entry into new categories supports sustainable growth. Margin benefits from lower input costs and operating leverage, while proactive risk management and strategic investments in talent, pilots, and initiatives position the company well against macro uncertainties.
This company has a massive domestic and international presence. It operates 33 plants, partners with 31 co-makers, and boasts over 8,150 employees and 5,050 distributors in India. Its trusted brands and strong R&D drive exports of pigments and emulsions to markets across Europe, North America, and Asia
Written by Abhishek Singh
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