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Pidilite Q3 FY26 Consolidated Analysis: Volume-Led Mastery Amidst Input Cost Tailwinds

Lesson 225/323 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

Pidilite Q3 FY26 Consolidated Analysis: Volume-Led Mastery Amidst Input Cost Tailwinds

This report provides a formal update on the consolidated performance of Pidilite Industries for the quarter ended December 31, 2025 (Q3 FY26). The figures below represent the combined performance of the parent company, its 34 subsidiaries, and 6 associates.

The Snapshot (Consolidated Basis)

Attribute	Details
Reporting Period	Q3 FY26 (October - December 2025)
Consolidated Sales	₹3,775.14 Cr
Consolidated PAT	₹624.12 Cr
Bonus Adjustment	1:1 Bonus Shares (Allotted Sept 2025) fully reflected in EPS
Market Outlook	Strong Domestic Demand vs. Geopolitical Export Headwinds

Financial Performance Table (Consolidated)

The following data is extracted from the Consolidated Unaudited Financial Results for Q3 FY26:

Metrics (₹ Cr)	Q3 FY26	Q3 FY25 (YoY)	YoY Change (%)
Revenue from Operations	3,775.14	3,368.91	+12.06%
EBITDA (Reported)	894.40	798.38	+12.03%
Profit Before Tax (PBT)	846.30	752.82	+12.42%
Profit After Tax (PAT)	624.12	557.25	+12.00%
Earnings Per Share (₹)	6.13	5.48	+11.86%

Segmental Performance (Consolidated)

Segment	Revenue (₹ Cr)	EBIT (₹ Cr)	EBIT Margin (%)
Consumer & Bazaar (C&B)	3,112.45	873.12	28.05%
Business to Business (B2B)	712.56	115.84	16.26%
Others	18.25	(5.42)	Loss

Key Operational Observations

1. Robust Domestic Growth

The Consolidated Revenue growth of 12.06% was primarily anchored by the domestic Consumer & Bazaar segment. While domestic volumes grew in the double digits, the overall consolidated growth was slightly tempered by a 13.5% decline in exports, specifically in the B2B/Pigments business due to global geopolitical disruptions.

2. Margin Expansion & Cost Drivers

Benign VAM Prices: Vinyl Acetate Monomer (VAM) consumption costs averaged $830/MT in Q3, down from $884/MT in the previous year.
One-time Wage Code Impact: Profitability was impacted by a one-time provision of ₹52.3 Crore at a consolidated level related to the new Wage Code (Gratuity and Leave Encashment).
A&P Reinvestment: Management increased Advertising and Sales Promotion (A&SP) spends significantly to support brand building for Roff and Dr. Fixit.

3. Subsidiary Performance

International Subsidiaries: Reported a top-line growth of 6% and a strong EBITDA growth of 19%, indicating improved operational efficiencies abroad despite the global slowdown.
Domestic Subsidiaries: Grew by 3.9%, with new ventures like Haisha Paints and Electronic Adhesives still in the investment phase.

Forward Outlook

Management has reiterated its long-term EBITDA margin guidance of 20% to 24%. Given the current surplus margins (24.2% consolidated), the company intends to reinvest excess gains into:

Distribution expansion into rural and semi-urban markets.
New Product Categories (Screed additives, tile adhesives, and specialized waterproofing).
Brand building to maintain a "Volume-led Growth" strategy.

Data Verification Note: Figures are based on the Consolidated Income Statement for the period ended Dec 31, 2025. Revenue includes Other Operating Revenue of ₹65.23 Cr, bringing the total to ₹3,775.14 Cr.

Fairvalue:

https://docs.google.com/spreadsheets/d/e/2PACX-1vSgH-IhBBbop0fxGgJQMt1EBSDutoVRreCe4uvIk3qq8Mxi9eWlYk5DUiuYj_FYsA/pubhtml?gid=1805958560&single=true

Disclosure: We are Corporate Investment Advisors. The above analysis is based on publicly available financial data and is intended for educational purposes only. It does not constitute a direct buy or sell recommendation.

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Piyush Patel

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