PIDILITIND Q1 FY25 earnings call.
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Revenue
₹3,384 Cr
verified against source
Revenue YoY
6%
reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Pidilite Industries delivered a solid Q1 FY25 with 9.6% underlying volume growth, ahead of expectations, driven by robust B2B expansion at 18% UVG while Consumer & Bazaar grew 8% UVG. Gross margins expanded 465bps YoY due to softer input costs (VAM at $1,022/ton vs $1,137 YoY), enabling EBITDA margin of 24.6% on standalone—near the top of their 20-24% target band. Revenue grew 6% YoY to ₹3,384 crore on consolidated basis, with international subsidiaries ex-Brazil/US growing 9%. Management remains confident of double-digit UVG for full year barring black swan events, expecting value-volume convergence from Q2 onward as pricing stabilizes. Rural/Emerging India continues to outperform for the eighth consecutive quarter, with 14,000 Pidilite Ki Duniyas and 28,000 villages now covered directly. Real estate tailwinds (currently in year 2 of boom) should deliver multiplier benefits from late FY25/early FY26. Kerala demand softness and geopolitical/input price volatility remain key risks to monitor.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated full-year underlying volume growth guidance of 10%+ for FY25, barring any black swan events, supported by stable pricing environment and robust rural momentum.
- If input prices remain stable and no major geopolitical disruptions occur, management expects value growth to converge with volume growth starting Q2 and definitely by H2, as pricing actions from FY24 roll off.
- Current margin of 24.6% expected to sustain near higher end of the range through FY25 if input costs remain benign, with scope to reinvest savings into brand building if margins compress.
- Internal target maintains rural growth at 1.5x urban, supported by continued expansion of Pidilite Ki Duniyas network and penetration opportunity in existing accounts (90% of growth is same-store, not new stocking).
Risks flagged
- Kerala has shown soft demand compared to normal buoyant conditions, potentially linked to reduced foreign remittances and government spending. Management will assess severity after Onam (August-September) festive season.
- VAM prices currently fluctuating between $850-$1,000/ton due to a major producer declaring force majeure. Near historical bottom levels per management guidance.
- Analyst highlighted that B2B portfolio remains a black box with limited predictability. Management targets double-digit UVG for B2B over 2-3 year horizon but acknowledged 18% Q1 growth is not sustainable at that level.
- Domestic subsidiaries reported flat revenue in Q1, attributed to heat wave and elections. Recovery expected in H2 festive season, but timing and magnitude of normalization remain uncertain.
Key quotes
- 90% of our growth is same-store growth. The new outlets, et cetera, is less than 10%. So we still have a massive opportunity in penetration in existing markets with existing accounts.
- We measure underlying volume growth, which is turnover at constant prices. If we were to look at our total volume growth for the first quarter, our actual volume growth is 19% in terms of tonnage. But frankly, we don't believe that's where I think underlying volume growth is a far better indicator of real growth.
- As far as the VAM bottom is concerned, when we speak to VAM manufacturers currently, in fact, the largest one of them actually declared a force majeure in its U.S. and Mexico plants because they found these levels itself not satisfactory. So I would say we are very near the bottom.
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