PIDILITIND

: Strong Q1 Performance Fueled by Domestic Growth

, a key player in adhesives and construction chemicals, delivered a robust Q1 FY26 performance with a 10.5% year-on-year (YoY) revenue growth. This was driven by a healthy underlying volume growth (UVG) of 9.9%. The company's stable gross margins and a 120 basis point (bps) expansion in operating margins were supported by easing input costs and a disciplined approach to advertising and promotion (A&P) spend. Consumer & Bazaar (C&B) Segment: This core segment, which makes up 81% of revenue, grew by 10.2% YoY, with a UVG of 9.3%. B2B Segment: The B2B business outperformed, with an 11.6% revenue increase and a stronger UVG of 12.6%. Domestic vs. International: While domestic subsidiaries grew by 11.5%, the international business saw a more moderate 6.4% growth due to global economic uncertainties. However, the international business showed signs of recovery in specific segments like pigments. For the past three years, rural demand has been stronger than urban demand, thanks to strategic investments. Urban markets are now beginning to show signs of a potential rebound. Lending Business: Pidilite has ventured into the lending business through its acquisition of Pargro Investments. With a planned investment of nearly ₹100 crore over two years, the company aims to provide credit to its ecosystem of contractors and dealers. Decorative Paints: The company entered the interior decorative paints segment by launching Haisha Paints. It is leveraging its existing distribution network in select states to target smaller towns, and the business is showing promising month-on-month growth, though it is still in its early stages. Competitive Landscape: The company faces increasing competition in key categories like tile adhesives, but its brand-building commitment remains strong, with A&P spend at 4–5% of revenue.