Pidilite Industries Sees Double-Digit Growth Despite Commodity Price Volatility

Pidilite Industries , best-known for its Fevicol, Dr Fixit and Fevikwik brands, expects to sustain double-digit underlying volume growth in the second half of FY27, backed by resilient demand across rural and urban markets, continued traction in its growth brands and a strong repair and renovation business. The optimism comes amid commodity price volatility, which is putting pressure on margins and prompting the company to undertake calibrated price increases. While Brent crude oil has dipped below $92 to a barrel following hopes US-Iran and Russia-Ukraine peace talks, experts say the situation remains fluid. “We are committed to being able to deliver this momentum of the first half, which is double-digit underlying volume growth leading to about 20% revenue growth,” managing director Sudhanshu Vats said during a media interaction this week. The company reported consolidated revenue of Rs 4,285 crore, up over 21%, while underlying volume growth stood at 10.7% in the September quarter, taking first-half growth to around 11%. Growth was broad-based, with its consumer and bazaar business performing well, a recovery in B2B volumes and domestic and international subsidiaries reporting growth in the high teens to early twenties. Pidilite took price increases of around 12% in the first quarter and another 3-5% in October. Further increases of around 2-3% in the fourth quarter remain a possibility, depending on input cost movements. “Demand is holding. We have seen robust demand in Q1, very robust demand in Q2 and steady demand as we enter Q3,” Vats said. He added that the company remained confident of delivering full-year EBITDA margins in the 20-24% range, with an aspiration to be at the higher end of the band. Commodity inflation, particularly in vinyl acetate monomer (VAM), a key raw material for Fevicol, has been a major challenge. Vats said VAM prices, which were around $800-900 last year, surged to nearly $2,000 following geopolitical tensions in West Asia before cooling and rising again. The company’s VAM consumption cost increased to around $1,600 in Q2 from approximately $880 in the preceding quarter. Despite the volatility, Pidilite reported first-half EBITDA margins of 23.5%, with margins fluctuating from 26.3% in Q1 to 20.5% in Q2. Vats said the company would continue to adjust pricing dynamically rather than hedge raw material costs, balancing cost recovery with affordability for consumers and dealers. He also said volume growth remained adequate to support margins. On demand, the company sees balanced growth across rural and urban markets, with urban demand catching up with traditionally stronger rural markets. Around 70% of Pidilite’s business comes from repair and renovation, insulating it to some extent from potential weakness in new construction. Vats said the company was not yet seeing any material impact of higher interest rates on construction activity. Growth brands, including Roff, Dr Fixit and Pidilite Projects, are expected to remain key drivers, while core brand Fevicol is also showing healthy growth. The company is expanding its B2B presence through newer segments, including a partnership with footwear manufacturer Hwaseung, even as exports to West Asia remain challenging. Pidilite will continue investing in brand building, innovation, direct distribution and manufacturing capacity, including new plants for Roff. Its quick-commerce channel is growing at over 100% and accounts for around 15% of its consumer business. The company has also crossed 25,000 PKE (Pidilite Knowledge Centres), as it steps up direct distribution.