Pidilite Industries 执行稳健，多元化产品组合富有韧性；维持增持评级

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Pidilite Industries

Consistent execution with a resilient diversified portfolio

at play; stay OW

Overweight

PIDI.NS, PIDI IN

Price (05 Aug 26):Rs1,665.00

▲Price Target (Sep-27):Rs1,820.00

Prior (Sep-27):Rs1,630.00

Following a strong Q1 print (First Take), management shared a confident narrative

and reiterated its double-digit UVG trajectory amid an inflationary consumption

backdrop. Demand remained resilient even as PIDI implemented calibrated price

hikes across the portfolio (2–12%) to pass through most of the input-cost inflation.

Beyond the core business (tracking ~1–2x GDP growth), the Growth/Pioneer

portfolio delivered accelerated momentum, supported by sharper on-ground

execution, distribution ramp-up, and deeper engagement with the painter/applicator

ecosystem. While Q1 EBITDA margin (26.2%) benefited from operating leverage

and lower-cost inventory, management expects some moderation as inventory cost

normalizes. However, it remains confident of sustaining margins toward the higher

end of the 20–24% guided band, underpinned by pricing discipline, steady demand,

and execution. Strategically, PIDI is prioritizing sustainable Underlying Volume

Growth (UVG) over pure pricing, while deepening its moat through premiumization

in core adhesives, faster growth in underpenetrated categories such as tile adhesives

and waterproofing, and further expansion of its Growth & Pioneer portfolio, which

now contributes nearly half of the business and could add ~100bps to UVG

annually.We raise our FY27/28E EPS estimates by 6–10% driven by higher volume

and margin assumptions; as a result, our Sep-27 target price rises to Rs 1,820 from Rs

1,630. Stay OW.

Confident of sustaining double digit UVG. Q1 revenue growth accelerated

to 21%, aided by stable demand conditions (low price elasticity) and calibrated

pricing actions (2–12% across the portfolio), though there may have been some

limited channel pre-stocking around the staggered price hikes. Despite an

inflationary consumption environment, PIDI continues to see steady homeimprovement demand, with Q1 UVG at 12% (C&B) and management sounded

…