Pidilite Industries has set a target for double-digit volume growth for the fiscal year 2027 following a strong first-quarter performance. The company reported a 21.3% revenue increase and 11.3% underlying volume growth. To counter rising raw material costs driven by geopolitical issues, the company has implemented staggered price hikes while maintaining its EBITDA margin guidance.
Pidilite Industries is aiming for double-digit volume growth in the current fiscal year, FY27, backed by a solid start in the June quarter. The company reported a 21.3% year-on-year increase in revenue, reaching ₹4,541 crore, alongside an 11.3% rise in underlying volume growth. This operational expansion comes as the business navigates challenges from higher input costs, which the management is actively managing through pricing and supply chain strategies.
To manage the impact of rising expenses, the company has introduced price increases ranging from 2% to 12% across its product lines. These cost pressures, often linked to fluctuations in crude oil prices, have been aggravated by geopolitical tensions in West Asia. Managing Director Sudhanshu Vats noted that these adjustments were necessary to protect the company’s profit margins while continuing to support business expansion. The company’s consolidated net profit grew by 30.3% to ₹884 crore during the first quarter.
Investors should note that Pidilite has maintained its EBITDA margin guidance band at 20-24%. This target shows that the company is focused on protecting profitability even as it pursues higher sales volumes. The company's performance in the first quarter, which saw margins reach 26.23%, suggests it is currently operating within this range despite the volatile cost environment.
The company’s growth plan faces some specific business uncertainties. Raw material costs, particularly for Vinyl Acetate Monomer (VAM), are closely tied to global oil prices, which remain sensitive to international conflicts. Additionally, the sustained recovery of demand in rural markets and the impact of weather patterns are factors that could influence the speed of growth. To build resilience, the management has diversified its supply chains, moving away from relying on a single source or region for essential materials.
For shareholders, the next important update will be the consistency of volume growth in the upcoming quarters and whether raw material prices begin to stabilize. Monitoring how the company manages to pass on costs without hurting consumer demand will also be essential, especially in the Consumer and Bazaar segment, which recorded 12.2% volume growth in the first quarter.