Pidilite (PIDI IN): Buy: Stick with India’s market leader in adhesives

Research evidence excerpt

Pidilite (PIDI IN): Buy: Stick with India’s market leader in adhesives

Equities ● Chemicals

15 July 2026

Executive summary

◆ Pidilite is a dominant brand franchise at the intersection of consumer

products and building materials

◆ 1H FY27 could see some impact on margins in spite of the 10-15%

price hikes; easing cost inflation will aid 2H FY27 numbers

◆ Modest competitive intensity and strong growth visibility – we expect

13-14% CAGRs on revenues, EBIT and EPS over FY26-29e

Company description: Pidilite remains the most dominant franchise in the Indian adhesives

market, led by woodworking adhesives and sealants; adhesives & sealants together account for

c53% of FY26 standalone revenues. The company has over time also built leadership positions

in construction chemicals – waterproofing chemicals and tile adhesives; construction chemicals

account for 25-30% of standalone revenues.

Pidilite’s market dominance is driven by its distribution, relationships with intermediaries and

Pidilite’s market dominance

strong brand. While white-glue adhesives are commodity products – even the company’s keyis driven by it distribution,

relationships with innovations have become commoditised over time. Duplicating Pidilite's multi-layered, deep

intermediaries and strong retail network across India’s urban and rural landscape along with the company’s entrenched

brand relationships with key intermediaries (carpenters, contractors, masons) make for strong barriers

to entry.

Right-to-win – distribution, brands and execution: The company also has an enviable

network of dealers and influencers which serve as a vehicle to not only compete effectively in its

existing core businesses but also launch and scale new brands. The company has built deep