Pidilite Sees Resilient Demand Despite Global Risks

Pidilite Industries expects resilient demand and double-digit underlying volume growth through FY27, even with geopolitical tensions and raw material price volatility posing risks. The company began the current fiscal year strongly, with Q1FY27 consolidated sales increasing by 21.3% year-on-year to Rs 4,541 crore. Underlying volume growth reached 11.3%, supported by timely price adjustments and effective cost management.

Raw material costs, particularly for Vinyl Acetate Monomer (VAM), have been highly volatile. Pidilite strategically passed on these increased costs through price hikes, ranging from 2% to 12% across its consumer and bazaar portfolio. The company, known for brands like Fevicol and Fevikwik, derives over 80% of its revenue from its core Consumer and Bazaar segment.

Despite concerns about rural demand due to monsoon uncertainty, both urban and rural markets are showing strong double-digit sales growth. Pidilite is also investing in its distribution network, Pidilite Ki Duniya, and premium products. The company maintains a long-term Ebitda margin framework of 20-24% for FY27.