The makers of Fevicol, M-Seal, Fevikwik, Dr Fixit and Araldite had achieved double-digit underlying volume growth with sequential improvements and healthy operating margins, even in a challenging macroeconomic environment. | Photo credit: BIJOY GHOSH
Pidilite Industries expects “double-digit underlying volume growth” in the second half of the current fiscal, aided by its growth brand moves, along with product innovation and marketing initiatives, said managing director Sudhanshu Vats.
The company expects to continue the momentum in the second half of the year with higher Ebitda (earnings before interest, taxes, depreciation and amortization) as input costs remain favorable, Vats said in a post-earnings virtual media round.
“We see that momentum will continue. That’s why we want to continue the double-digit underlying volume growth we delivered in the first half with that momentum into the second half,” Vats said while responding to a question from PTI.
The company, which produces adhesives, sealants and construction chemicals, last week reported 9.8 per cent growth in consolidated net sales to ₹3,540 crore for the September quarter. In addition, Ebitda increased by 24 percent.
The makers of Fevicol, M-Seal, Fevikwik, Dr Fixit and Araldite had achieved double-digit underlying volume growth with sequential improvements and healthy operating margins, even in a challenging macroeconomic environment.
It remains optimistic and expects improvement, aided by favorable monsoons and the indirect impact of GST 2.0 on demand, coupled with accelerated growth in the construction sector, driven by favorable interest rates and improved liquidity.
“In the first half we were at the higher end of the Ebitda corridor, which we delivered, around 24 percent, and I think if input costs remain favorable we should profitably deliver double-digit underlying volume growth and perhaps certainly within the corridor, but perhaps at the higher end of the corridor,” Vats said.
In the first half, Pidilite’s consolidated net sales rose 10.5 per cent to ₹6,740 crore, along with Ebitda of 25.2 per cent.
“We will therefore continue to work on various parts of our portfolio of product innovation and marketing initiatives and be able to continue to profitably deliver double-digit underlying volume growth within the Ebitda profit corridor, which we have been talking about at 20 to 24 percent,” said Vats, who took on the role of Managing Director earlier this year on April 10, 2025.
He succeeded Bharat Puri, who had served as Managing Director for ten years and is now the non-executive and non-independent director on the company’s board.
Pidilite, which reported EBITDA of 24.6 percent in the first half of FY26, expects this to be on the higher side in the second half.
When asked about urban versus rural growth, the MD expects that the urban market, which has been under pressure in recent quarters, will grow and look better.
“We have seen growth in rural areas being higher than in urban areas, but… in urban areas we have seen an increase in growth in the second quarter. We should continue to see growth picking up in urban areas as well, but because of the work we are doing and because of the under-penetration, we will continue to see strong growth in rural areas as well,” he said.
Like other industry players, rural areas have witnessed significant growth for Pidilite.
“Our rural growth continues to outgrow urban growth, but this quarter we also had very good urban growth. So this time, rural growth is about 100 to 150 bits higher than urban growth, but rural growth is still high,” he said, adding that “urban growth will start to grow a little bit and look better.”
Responding to another question on the impact on demand and commodity prices in the current geopolitical situation, Vats said the situation remains volatile, as for most companies. However, Pidilite’s direct exposure to tariffs is lower and allows us to conduct business independently of fluctuations and uncertainty.
“…but we’re watching this closely and we’ll continue to look at it, and especially from a supply chain perspective, we’ve got more business contingency plans in place going forward. So I think that gives us a little bit of certainty as we move forward,” Vats added.
Published on November 2, 2025
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