1. Opening Hook
While the world’s still arguing over glue vs. tape, Pidilite quietly glued a 10% volume growth to its Q2 FY26 board. From Dr. Fixit to Fevicol, they’ve stuck to growth even as global demand softened — literally holding India’s DIY dreams together while others peeled off. And yes, “Haisha” may still be finding its true form, but management sounds more zen than Zomato.
As the Bhagavad Gita says,“Yogastha Kuru Karmani”— perform your duty, focus on the glue, not the goo. Stay tuned; the sticky stuff gets better below.
2. At a Glance
- Revenue up 9.8%:Management insists it’s not ‘Fevikwik accounting,’ just genuine demand.
- Consumer & Bazaar UVG +10.4%:Urban finally joins the rural rally after years of lag.
- Gross margin +0.5%:Thanks to cheaper VAM — the one input that didn’t ghost them.
- EBITDA margins flat YoY:Ads grew 80%, but so did self-control on costs.
- Exports dipped:Tariffs and geopolitics — even glue can’t fix that.
- Stock steady:Investors seem glued already, no fresh stickiness needed.
3. Management’s Key Commentary
“Consumer & Bazaar UVG hit 10.4%, double-digit after five quarters.”(Translation: Even Fevicol’s patience was tested, but it finally bonded back. 😏)
“Exports declined due to geopolitical uncertainty.”(Read: Tariffs made even our adhesives detach from profits.)
“We hiked ad spend by 80% YoY.”(When glue sticks, advertise harder — that’s the gospel.)
“Rural still outperforms urban, but urban catching up.”(Translation: Villages still rule; cities are learning the art of sticking.)
“VAM prices down to $883 from $980.”(Save on inputs, splurge on ads — equilibrium achieved.)
“Haisha model still work-in-progress.”(Still curing, not fully set. Like glue in winter.)
“Electronics adhesives are in pilot stage; sales started to a few clients.”(Read: Too small now, but could short-circuit competitors later ⚡.)
“UnoFin project slower than expected, now in pilot phase.”(Architects nod; margins sigh. Patience remains the secret ingredient.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Comment |
|---|---|---|---|
| Consolidated Revenue | ₹3,540 Cr | +9.8% | Urban glued itself back |
| Consumer & Bazaar UVG | +10.4% | +300 bps | Strongest bond in years |
| B2B UVG | +9.9% | Flat | Domestic B2B mid-teens, exports drag |
| Gross Margin | +0.5% | ↑ | Input prices softened |
| Advertising & Promotion | +80% | ↑ | Brand still shines |
| EBITDA Margin | ~24% | Flat | Within the sacred corridor |
| Capex | 3–5% of sales | Consistent | Capacity in sync with demand |
Quick Take:Rural repeat demand leads; urban green shoots emerging. Gross margin savings offset marketing binge.
5. Analyst Questions
Q:Rural vs urban — who’s winning?A:Rural still king, but cities are catching up. (Fevicol ka jod — rural style.)
Q:Plans to spend more on launches?A:Yes, judiciously. (Translation: The ad budget got its own glue upgrade.)
Q:Input cost outlook?A:Benign for 6 months; beyond that, even God doesn’t give guidance.
Q:Haisha update?A:Growing in pilots, still learning to stick. (Mildly adhesive progress.)
Q:Electronics adhesives timeline?A:Revenue started; relevance TBD. (R&D still drying.)
6. Guidance & Outlook
Pidilite sticks to its tried-and-tested
