PIDILITIND

Q2 FY26 Update & H2 Outlook

Strong volume momentum, margin optimism, and rural-led growth trajectory 🔹 Volume Growth Outlook - Pidilite expects to sustain double-digit underlying volume growth in H2 FY26, continuing the momentum from H1. - Growth will be supported by strategic brand initiatives, product innovation, and targeted marketing efforts. 🔹 Profitability & Margin Guidance - EBITDA margin stood at 24.6% in H1 FY26, slightly above the guided corridor of 20–24%. - Management expects margins to remain on the higher side in H2, assuming input costs stay benign. - Consolidated net sales in H1 rose 10.5% YoY to ₹6,740 crore, with EBITDA at 25.2%. 🔹 Sector Tailwinds & Demand Drivers - Favourable monsoons, GST 2.0’s cascading impact, and robust construction activity—driven by low interest rates and liquidity—are expected to boost demand. - The company remains optimistic about macro conditions supporting volume and margin expansion. 🔹 Leadership Transition - Sudhanshu Vats, who took over as MD on April 10, 2025, emphasized continuity in strategy and execution. Bharat Puri, former MD, now serves as Non-Executive and Non-Independent Director on the board. 🔹 Urban vs Rural Growth Trends - Rural markets continue to outperform urban, with growth rates 100–150 basis points higher. - However, urban demand showed signs of recovery in Q2 and is expected to improve further. - Under-penetration in rural areas offers continued headroom for expansion. 🔹 Geopolitical Impact & Risk Management - While global volatility persists, Pidilite’s limited direct exposure to tariffs helps insulate operations. - The company remains agile in managing commodity price fluctuations and external uncertainties. 🔹 Strategic Focus Areas - Continued emphasis on portfolio diversification, innovation, and premiumisation. - Management remains committed to profitable growth within the defined EBITDA corridor.