Pidilite Industries Limited’s material costs rose faster than sales in the September quarter, squeezing its consolidated EBITDA margin as earnings growth lagged revenue growth.
The company’s Q2 FY27 presentation showed net sales up 21.1% year over year to ₹4,285 crore for the quarter ended Sept. 30. EBITDA increased 3.1% to ₹878 crore, and the margin declined to 20.5% from 24.0% a year earlier.
Material costs reached ₹2,211 crore, a 38.3% increase from the year-earlier quarter. Pidilite described material inflation as very high and said pricing measures and cost management helped manage its impact during the first half.
The company’s unaudited results filing recorded consolidated profit for the period of ₹626.46 crore. Its presentation rounded consolidated profit after tax to ₹626 crore and reported a 7.1% year-over-year increase.
Standalone results showed revenue and underlying volume growth in both business segments. Consumer & Bazaar, which mainly serves retail customers, recorded revenue growth of 20.7% to ₹3,198 crore and underlying volume growth of 11.1%. Business to Business, which serves mainly large business users, reported revenue growth of 21.8% to ₹820 crore and underlying volume growth of 9.2%. Segment profit before interest and tax rose 2.5% in Consumer & Bazaar and fell 3.4% in Business to Business.
NDTV Profit reported that Citi lowered its target price to ₹1,300 from ₹1,550 and retained a Sell rating. The outlet said Citi cut its FY27–FY29 earnings-per-share estimates by 2% to 5%, while Goldman Sachs and HSBC retained Buy ratings. NDTV Profit listed HSBC’s target at ₹1,920.
Pidilite scheduled its Q2 FY27 earnings call for 6 a.m. EDT (10:00 UTC) Thursday, Oct. 29.
