Pidilite Industries (PIDILITIND) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw underlying volume growth of 9.7% and revenue growth of 9.3%, with B2B segment achieving 21.7% volume growth and Consumer & Bazaar (C&B) at 7.3%.

• Gross margins improved by 100 bps YoY due to benign input prices; EBITDA margin for Q3 was 24.3% vs 25.1% last year.

• Domestic subsidiaries posted double-digit revenue growth and improved EBITDA margins, while international subsidiaries saw modest growth amid global uncertainties.

• Nine-month standalone volume growth was 9.2%, with C&B at 7% and B2B at 20.2%; gross margins up 284 bps YoY.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved by the Board on 22 January 2025.

Financial highlights

• Q3 FY25 consolidated net sales: Rs 3,357 Cr (up 7.6% YoY); EBITDA: Rs 798 Cr (up 7.5% YoY); PAT: Rs 557 Cr (up 9.0% YoY).

• Standalone Q3 FY25 net sales: Rs 3,085 Cr (up 9.3% YoY); EBITDA: Rs 749 Cr (up 5.7% YoY); PAT: Rs 535 Cr (up 2.2% YoY).

• Standalone revenue from operations for Q3 FY25 was ₹3,099.08 crore, up from ₹2,834.47 crore in Q3 FY24; nine-month revenue was ₹9,221.84 crore, up from ₹8,578.09 crore YoY.

• Consolidated revenue from operations for Q3 FY25 was ₹3,368.91 crore, up from ₹3,129.99 crore in Q3 FY24; nine-month revenue was ₹9,999.17 crore, up from ₹9,481.14 crore YoY.

• Standalone net profit for Q3 FY25 was ₹534.50 crore, compared to ₹522.85 crore in Q3 FY24; nine-month net profit was ₹1,628.07 crore, up from ₹1,445.15 crore YoY.

Outlook and guidance

• Management remains cautiously optimistic, expecting demand to improve post-budget and with increased government spending, aided by good monsoon and construction activities.

• Input prices expected to remain benign in Q4; margins likely to stay in the 20-24% range.

• Focus remains on investing behind growth, even if margins are at the higher end, with consistent, profitable, volume-led growth through brand, supply chain, and people investments.

• No expectation of a significant post-budget demand pickup unless macro conditions improve.