PIDILITIND Q2 FY25 earnings call.
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Revenue
₹3,235 Cr
verified against source
Revenue YoY
7%
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 delivered resilient Q2 FY25 results with standalone revenue of INR 2,965 crore (+7% YoY) and underlying volume growth of 8%, despite challenging demand conditions from monsoon and elections. The broad-based volume growth was driven by robust B2B expansion at 21% UVG, while Consumer & Bazaar segment showed 6% UVG with rural markets continuing to outpace urban growth. Gross margin expanded by 280 bps YoY due to benign input costs (VAM at ~$980/ton), enabling EBITDA margin improvement to 24.6% on standalone—a 143 bps expansion. Consolidated revenue stood at INR 3,222 crore (+7% YoY/+5% adjusted for subsidiary revenues), with PAT growth of 18% YoY. Management remains cautiously optimistic on near-term demand, noting October remains "normal, not buoyant." They target double-digit UVG for FY25, anticipating H2 uptick from government capex, improved monsoon outcomes, and rural income tailwinds. Key risks include uncertain urban consumption recovery and sustained A&P investments planned for H2.
Colored figures show movement against the previous available record.
Guidance to track
- Management reaffirmed commitment to double-digit underlying volume growth for full year, planning H2 uptick from improved government capex, favorable monsoon tailwinds, and rural income benefits.
- Avi Mehta questioned whether H1 margin of 24.6% signals range breach; management clarified A&P spend was deferred to H2/H3, which will normalize margins back toward historical range ceiling.
- Current VAM procurement is between $800-900/ton depending on timing; Q3 expected to be "very similar to Q2" in terms of raw material index, with some other inputs seeing price increases.
- Paints initiative in four southern states (covering <1/3 of India) will be evaluated after full festive season cycle including Pongal in January; current impact on group growth is immaterial.
Risks flagged
- Management acknowledged urban demand "is not really buoyant" and reserved judgment for 3-6 months pending monsoon outcomes and food inflation easing. October is described as "normal, not buoyant."
- Sudhanshu Vats admitted consumer product categories like Fevikwik and art & stationery saw marginal impact in H1, similar to broader FMCG weakness. How much is temporary (election/weather) versus structural demand weakness remains unclear.
- Tejas Shah asked about competitive intensity from paint companies entering waterproofing; Sudhanshu acknowledged market "turmoil" but predicted clarity on new normal only post-Next Diwali (October 2025).
- Subsidiary Nina Percept (contracting) is "slowly coming back to profitability" with full recovery expected over next three quarters—flagged by analyst as ongoing concern given multi-year losses.
Key quotes
- Despite challenging economic conditions across the first half, first quarter disrupted by elections and the second quarter because of extensive rains, we have delivered robust underlying volume growth as well as improved profitability.
- There is no evidence right now of what I would say, a much more buoyant demand situation during the festive season. We are ten days away, though I must say that, remember, the last ten days of the festive season are very strong. But having said that, I mean, we are not seeing any major, like, you know, as if there was a lot of pending stuff that had to be completed, and therefore there is a rush. It's, it is still a normal October.
- What we would like to do is, if in these tougher times, we have delivered 9% UVG, stepping it up second half is an imminent possibility. But as I said in the answer to another question on demand, frankly, the best. This question will be best answered in January, because by then you'll know where the new normal has settled post-Diwali.
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