Equity Snap: Pidilite (PIDI IN): Q1FY27 results – demand resilient, margins strong

Research evidence excerpt

Equity Snap: Pidilite (PIDI IN): Q1FY27 results – demand resilient, margins strong

4 August 2026

Equity Snap: Pidilite (PIDI IN) Equities Chemicals

Q1FY27 results – demand resilient, margins strong India

◆ Q1FY27 results were strong – standalone revenues and Pratik Gothi*

EBITDA grew by 22% and 26%, respectively Analyst,HSBC SecuritiesIndia Consumerand Capital& RetailMarkets (India) Private

Limited

◆ Consolidated revenues and EBITDA were 3% and 14% pratik.gothi@hsbc.co.in

+91 80 6737 3929

above consensus

Nihal Mahesh Jham*, CFA

Senior Analyst, India Consumer & Retail

HSBC Securities and Capital Markets (India) Private

Pidilite (PIDI IN, INR1642.50, Buy, TP INR1890.00) Limited

(Priced as of 03 Aug 2026) nihal.m.jham@hsbc.co.in

+91 22 66283771

◆ Strong underlying volume growth (UVG): Standalone UVG of 11.3% was Nupur Vyas*

resilient with the key Consumer & Bazaar (C&B) business UVG of 12.2% (2-yr Associate, India Consumer & Retail

CAGR: c.11%) especially encouraging. The company saw broad-based growth Limited

nupur.vyas@hsbc.co.in

across both C&B and Business-to-Business (B2B) segments. +91 22 40891584

◆ Strong standalone margins: Standalone gross margins were strong at 52.6%,

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

down 90bp yoy and down 314bps qoq on account of cost inflation in key raw not registered/ qualified pursuant to FINRA regulations

materials. Margins were supported by price increases and consumption of low-

cost inventories, as per the company. Opex was controlled and grew slower than

revenue growth, which resulted in positive operating leverage and EBITDA

margins of 26.2%, highest in the last five years.

◆ Consolidated revenues and EBITDA grew by 21% and 29%, respectively, and

were 3% and 14% above Bloomberg consensus.