Pidilite Industries (PIDI IN) – Q2FY26 Result Update – Growth outlook remains strong – BUY
Published on 31 Oct 2025
PIDI continues ~double-digit UVG led by 10.4% UVG in C&B 2Q, EBITDA margin was flat YoY, while declined by ~100bps QoQ amidst elevated A&P spends. PIDI continues to focus on volume-led profitable growth led by its strategy of developing pioneer categories and entering newer segments. B2B continued its growth momentum driven Project verticals, while industrial products were partially impacted by lower exports. B2C remained resilient with strong UVG of 10.4% improving sequentially.
PIDI is well placed to sustain growth led by innovations, tie-ups to bring technologically advanced products and 2-4x growth in pioneer and growth categories (45% sales). Near term margin outlook seems stable, although margins leave a little scope of expansion from current levels as Pidi remains committed towards investing behind brand growth. We estimate 10.1% EPS CAGR over FY26-28 and assign DCF based target price of Rs1714. PIDI is operating at peak of the cycle margins, consequently, expect moderate returns unless consumer demand surprises on the upside. Retain BUY
