Whalesbook
Pidilite Industries is poised for a significant uptick in its export business, particularly to the United States, following a recent revision in tariffs. Managing Director Sudhanshu Vats expressed confidence that the export component, which saw a slowdown in the third quarter of FY26, will bounce back swiftly, potentially by the end of the current quarter and into the next fiscal year.
Q3 Earnings and Export Impact
The company posted a 12% rise in consolidated net profit to ₹623.84 crore for the December quarter, while revenue from operations grew 10.12% to ₹3,709.91 crore. However, Pidilite's Business to Business (B2B) segment, which includes industrial products and exports, experienced headwinds. Lower exports directly impacted its EBIT, which declined by 77 basis points in Q3. Total exports in Q3 FY26 stood at ₹993 crore, a figure Vats expects to correct with the "rationalisation" of tariffs.
Broader B2B and EU FTA Prospects
The anticipated export recovery is expected to provide an indirect impetus to various B2B categories, including leather chemicals and footwear. Beyond the U.S. market, Vats highlighted the positive implications of the India-European Union Free Trade Agreement, noting it would strengthen the company's export portfolio over the medium term, although ratification by the European Parliament could take six to nine months.
Growth Outlook and Cost Management
Pidilite remains committed to its strategy of delivering double-digit underlying volume growth, a track record maintained for several quarters. Vats indicated a slight upward revision in this growth trajectory, citing a nearly 100 basis point lift in the nine-month performance of FY26 compared to FY25. The company has also managed to absorb fluctuations in raw material prices, benefiting from benign price trends thus far. Both rural and urban markets are showing signs of growth for Pidilite, with urban markets gaining momentum in recent quarters.