Pidilite Industries (PIDILITIND) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue reached Rs. 3,234.91 crore, up 5.2–7% year-over-year, with PAT up 17.8–18% to Rs. 540–534.56 crore; standalone revenue was Rs. 2,976.92–2,965 crore, PAT up 19.2% to Rs. 542–534.87 crore.

• H1 FY25 consolidated revenue was Rs. 6,630.26–6,607 crore, PAT up 19.2% to Rs. 1,112–1,091.13 crore; standalone revenue was Rs. 6,122.76–6,099 crore, PAT up 19% to Rs. 1,094–1,083.86 crore.

• Consumer & Bazaar (C&B) segment saw 6% UVG in Q2, with rural growth twice that of urban; B2B UVG was 21%.

• International subsidiaries (excluding Pidilite USA and Pulvitec Brazil) delivered double-digit sales and EBITDA growth despite global uncertainties.

• Board approved unaudited results on 23 October 2024; auditors issued an unmodified limited review opinion.

Financial highlights

• Gross margin expanded by 280–281 bps in Q2 and 376–380 bps in H1 year-over-year due to lower input costs.

• Standalone EBITDA margin for Q2 was 24.6%, up 143 bps year-over-year; H1 EBITDA margin was 24.6% vs 23% last year.

• Q2 FY25 consolidated EBITDA grew 13.1% to Rs. 769 Cr; standalone EBITDA up 13.7% to Rs. 731 Cr.

• VAM consumption cost in Q2 was $980/ton, down from $1,000/ton last year.

• Working capital and cash flows remained healthy, supporting strong cash inflows.

Outlook and guidance

• Management aspires to double-digit underlying volume growth, with H1 at 9%.

• Optimism for H2 FY25 driven by healthy monsoon, increased government spending, and new construction activity.

• No major price decreases expected; value growth may outpace volume.

• Margin expected to remain at the higher end of the 20–24% range, with increased A&P spend in H2.

• Continued investment in growth initiatives and supply chain modernization, while monitoring geopolitical risks.