Pidilite Industries Q1: MD Sudhanshu Vats decodes stellar earnings show

Fevicol maker Pidilite Industries reported a strong set of earnings for the June 2026 quarter. Net profit grew by 30.3% on a year-on-year basis to Rs 884 crore. The company's revenue rose 21.3% from last year to Rs 4,551 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at Rs 1,194 crore, a 27% growth from the year-ago period.

BTTV spoke to Sudhanshu Vats, Managing Director at Pidilite Industries on the earnings performance and future plans of the company.

Commenting on the Q1 show, Vats said demand for the company's products has remained intact amid timely, disciplined and calibrated price hikes. The MD said Q1 has always been one of the strongest quarters for the fevicol maker. Additionally, the company had seasonality advantage on its side.

On the other hand, the raw material inflation caused some impact on gross margins, which contracted by about 70 bps.

But growth in demand and the revenue growth provided the company with a lot of leverage between gross margin and the company's other costs, Vats said.

On whether urban growth or rural growth has taken lead due to inconsistent monsoon in the quarter gone by. Vats said urban growth has been picking up for the company in the past.

"And in the quarter one, this is the first time when the urban growth has come close to or has equalled rural growth. But rural growth also for quarter one for us was intact. We've got to watch it as we go forward," said Vats.  According to him, urban markets have clocked more growth for the firm in Q1.

Vats is of the view that monsoon has been erratic. "But in some parts of the country, I must also say that monsoon picked up quite a lot in July and August. I know there is a talk of deficient monsoon this year and an El Nino effect," said Vats.

"But that we will watch for and work on as we go forward," he added.