Pidilite Industries Ltd.Strong Domestic Momentum with 11% UVG

Pidilite Industries delivered a strong Q3 FY26 performance with standalone revenue of ₹3,425 crores, registering 11% year-on-year growth.

The domestic business demonstrated robust underlying volume growth of 11%, with Consumer & Bazaar segment achieving 9.7% UVG and B2B at 7.4% UVG. Despite a one-time wage code provision of ₹47 crores and increased brand building investments, EBITDA margins expanded by 24 basis points to 24.5%, supported by 200 basis points gross margin improvement from benign input costs. Export business declined 13.5% due to geopolitical challenges, but management expects resolution by Q4 FY26 with alternative strategies in place.

Dr. Fixit waterproofing showed distinctly better growth than the past 2-3 years, while the tile adhesive category is expanding at 18-20%, significantly outpacing the 8-10% tile industry growth. Management remains confident in sustaining double-digit growth trajectory, targeting 100-150 basis points annual price growth while maintaining the 20-24% EBITDA corridor. The company's portfolio benefits from 70-75% exposure to renovation and repair segments, providing resilience. Brand investments in Roff and new product launches like NioPro premium tile adhesive are gaining strong traction.