Synopsis:
A large-cap company, well-known for its popular brand Fevicol, is in focus today after announcing strong Q2 results.
A Large-cap company that is a leading manufacturer of adhesives and sealants, construction chemicals, DIY products and polymer emulsions in India, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 1,48,759.26 crore, the shares of Pidilite Industries Limited is trading at Rs. 1,461.30, down by 1.70 percent from its previous closing price of Rs. 1,486.40. The stock has touched an intraday low of Rs. 1,456.50 in today’s trading session.
Q2FY26 Results
Pidilite Industries Limited reported Rs. 3,554 crore in revenue for the second quarter of FY26, an 9.86 percent increase over the Rs. 3,235 crore for the same period in FY25. It decreased by 5.30 percent as compared to Rs. 3,753 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 850 crore, down by 9.67 percent from Rs. 941 crore in Q1 FY26, but inclined by 10.68 percent from Rs. 768 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 585 crore, which was 13.72 percent lower than the Rs. 678 crore reported in the previous quarter and increased by 8.33 percent from Rs. 540 crore in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 5.69 in Q2 FY26 from Rs. 5.26 in Q2 FY25.
Out of the standalone revenue of Rs. 3,287 crore, the Consumer & Bazaar (C&B) segment contributed Rs. 2,650 crore (around 80.6 percent), while the Business-to-Business (B2B) segment accounted for Rs. 673 crore (around 20.5 percent), and the remaining Rs. 14 crore (around 0.4 percent) came from the Others segment. The company also reported inter-segment sales of Rs. 50 crore.
Management View
According to Managing Director Mr. Sudhanshu Vats, Pidilite Industries delivered double-digit underlying volume growth with sequential improvement and healthy margins despite a challenging macroeconomic environment. He expressed optimism about the future, expecting the domestic operating environment to strengthen with favourable monsoons, GST 2.0 benefits, and growth in the construction sector supported by low interest rates and liquidity. However, he cautioned about potential risks from geopolitical tensions and global tariff uncertainties, reaffirming the company’s focus on sustained, profitable, volume-led growth through continuous investments in brands, supply chain, and people.
Revenue Segmentation
Consumer & Bazaar (C&B)
Revenue grew 10.8 percent YoY to Rs. 2,650 crore, driven by 10.4 percent UVG. EBIT rose 10 percent to Rs. 821 crore, with margins slightly lower at 31.0 percent (down 23 bps). Material costs declined, while advertising and sales promotion (A&SP) spending increased to boost growth.
Business-to-Business (B2B)
Revenue increased 8.7 percent YoY to Rs. 673 crore, led by project business momentum, though industrial product exports were affected by tariffs. EBIT grew 7.7 percent to Rs. 119 crore, with margins at 17.7 percent (down 17 bps) due to higher A&SP spends, partially offset by lower input costs.
Analyst View
Goldman Sachs maintained a Buy rating on Pidilite Industries with a target price of Rs. 1,700 (upside of 16.33 percent), citing steady Q2FY26 results and strong volume growth in the Consumer & Bazaar segment. Margins stayed stable as gains were reinvested in advertising. The brokerage expects continued demand recovery, driven by rural growth, housing activity, and stable input costs, supporting earnings momentum and mid-teen EBITDA margins.
About the company
Pidilite Industries Limited is a leading Indian manufacturer of adhesives, sealants, construction chemicals, DIY products, and polymer emulsions, with a diverse range covering paint and automotive chemicals, art materials, fabric care, and industrial resins. Most products are developed through strong in-house R&D. Its flagship brand Fevicol is synonymous with adhesives in India, while other major brands include M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Araldite, and Fevicryl.
A return on equity (ROE) of about 23 percent, a return on capital employed (ROCE) of about 29.8 percent and debt to equity ratio of 0.05 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 66.2x higher as compared to its industry P/E 32x.
Written By Akshay Sanghavi
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