PIDILITIND Q4 FY26 earnings call.

Guidance to track

• Management reiterated commitment to the 20-24% EBITDA margin band. With benign input costs in FY26, margins were at higher end; with current raw material inflation (~40-50%), FY27 margins expected to be lower but remain within the band.
• Management's stated intent is to systematically raise underlying volume growth by approximately 100 basis points each year. FY26 UVG of 11.3% was 120bps higher than FY25's 9.3%. This trajectory is the planning objective.
• Company took ~4-5% blended price increase in mid-April and ~7-8% in early May, totaling ~12-15% for VAM-intensive categories. Strategy is to pass through absolute rupee cost increases in calibrated, staggered fashion while maintaining growth focus. If West Asia conflict resolves quickly, price relief may need to be passed back.
• FY26 CapEx was ~INR 570 crore vs ~INR 430 crore in prior year. Three CapEx buckets: (1) growth CapEx for capacity augmentation, (2) automation/consolidation for core categories including premium white glue plant commissioning in Q1 FY27 West India, (3) newer categories/areas.

Risks flagged

• Raw material basket inflation is 40-50% at current replacement prices. VAM specifically spiked ~70%. If conflict continues, supply security becomes challenging and cost inflation will be harder to fully pass through while maintaining volume growth. Management acknowledged this as a scenario-planning priority.
• Analyst raised price elasticity question — whether 15% pricing (if fully implemented) would cause volume backlash similar to the inverse case (10% volume at 0% pricing). Management admitted it's difficult to predict full-year impact: 'Should there be some demand contraction? How much will it be and when will it be? It's something to be watched out for.' They declined to provide a formula.
• Nina Percept waterproofing business declined 16% in Q4 due to environmental restrictions (GRAP stages in Delhi, construction site halts in Mumbai, Hyderabad). While order book is healthy, quarterly volatility persists from pollution/environmental regulations affecting construction activity.
• March exports were impacted by West Asia supply chain disruption for both Consumer & Bazaar and B2B segments. While direct export exposure is 'small as a company,' any resolution restoring exports would be 'icing on the cake.' Saudi Arabia VAM supply was disrupted; company sourcing from China as alternative.

Key quotes

• Our approach is that we are looking at this replacement margin at the current costs and saying that, first and foremost, how do we transfer these costs in a calibrated fashion into the market, calibrated and staggered a little bit. Our topmost priority is to continue our focus on growth and continue to do all the demand generation activities which we need to do.
• The endeavor from our side is to drive investments so that we can get faster growth. That as an intent has not changed. It remains. We saw results all of last year and we saw a very healthy result in the last quarter. What will be the outcome? I think given the situation that we are in, it will be very difficult to hazard a guess as to what will happen in this year. It's not a normal year.
• There are basically two scenarios. Scenario one is that West Asia conflict is contained or at least partly resolved in the month of May. There is a good chance of that, to be honest with you. Scenario two is West Asia conflict continues for much longer. In the case of scenario one, I think we are going in with the hypothesis that the demand buoyancy which India saw in the last quarter of FY 2026 will more or less sustain.