Pidilite Industries reported a strong financial performance for the first quarter of FY27, with net profit rising 30% year-on-year to ₹884 crore. The maker of adhesives and construction chemicals successfully offset higher raw material costs through timely price increases, while maintaining robust demand across its product portfolio. The company’s consolidated revenue increased 21% to ₹4,551 crore during the quarter, supported by strong volume growth, proactive pricing measures and improved operating leverage.
Timely Price Hikes Help Offset Input Cost Inflation
During the April-June quarter, Pidilite increased prices across its consumer and bazaar product portfolio by 2% to 12% to counter the rise in raw material costs triggered by the geopolitical tensions in West Asia. The company implemented even steeper price hikes for its industrial products, enabling it to recover higher input costs without significantly affecting demand.
Strong Demand Drives Revenue and Profit Growth
Sudhanshu Vats, Managing Director, Pidilite Industries, said sustained demand, disciplined execution and proactive pricing contributed to the strong quarterly results. He added that the company delivered 11% underlying volume growth, supported by timely price revisions and efficient execution across markets. Pidilite also benefited from lower-cost inventory carried over from the previous quarter, while effectively managing costs and continuing to invest in brand building.
Pricing Strategy Focuses on Cost Recovery
Pidilite emphasised that its pricing strategy is designed to recover increases in raw material costs rather than expand profit margins. According to the company, it passes on only the actual increase in input costs while absorbing part of the inflation internally. Furthermore, if raw material prices decline, Pidilite plans to pass the benefit on to customers through trade rebates.
Supply Chain Diversification Reduces Risk
To strengthen supply chain resilience, the company has diversified its sourcing strategy by working with multiple suppliers across different geographies. As a result, Pidilite has eliminated dependence on single-source vendors and created buffer stocks of packaging material feedstock to support suppliers and minimise potential disruptions.
Urban and Rural Demand Remain Healthy
Demand remained strong across both urban and rural markets during the quarter, although urban markets outperformed rural regions. As reported by thehindubusinessline.com, Pidilite remains optimistic about growth prospects and has reiterated its guidance of achieving double-digit underlying volume growth in FY27. The company expects sustained consumer demand, disciplined pricing and continued operational efficiency to support its long-term growth trajectory.
