1. At a Glance – The Fevicol Effect Is Still Sticking
Pidilite Industries Ltd is that rare Indian company where the brand is stronger than the balance sheet… and the balance sheet is already scary strong. As of Q3 FY26, the company is sitting on a market cap of ~₹1.45 lakh crore, trading around ₹1,428, with a P/E north of 62x, which is basically the stock market’s way of saying: “Bhai, yeh company special hai.”
The latest Q3 FY26 numbers?
- Revenue: ₹3,710 crore (+10.1% YoY)
- PAT: ₹624 crore (+12.6% YoY)
- Operating Margin: ~24% (yes, still expanding)
ROCE is flirting with 30%, ROE is a solid 23%, debt is barely noticeable at ₹443 crore, and interest coverage is a casual 58x—which means lenders are basically background characters in this story.
But here’s the masala: despite pristine fundamentals, the stock has delivered -1.9% in 3 months and -3.6% over 1 year. So the obvious question arises—is Pidilite slowing down, or is valuation just doing valuation things? Let’s dig in.
2. Introduction – When Glue Becomes a Luxury Product
Pidilite is not a chemicals company. It is not even an FMCG company. It is a religion.
In India, you don’t “apply adhesive.” You Fevicol lagate ho. That’s brand monopoly at a level most companies only dream about during concalls. Since its early days, Pidilite has quietly embedded itself into every Indian household, carpenter shop, construction site, school project, and jugaad repair job.
What makes Pidilite fascinating is not just growth—it’s predictability. This company has compounded sales at ~10–12% for a decade, profits faster than sales, and margins that refuse to die even when
crude prices throw tantrums.
Yet, at 62x earnings, the market is already assuming that:
- Urban housing won’t slow
- Construction chemicals will keep compounding
- Fevicol will remain immune to private labels
- Competition will stay politely irrelevant
That’s a lot of faith for a glue company. Or is it?
3. Business Model – WTF Do They Even Do?
Pidilite operates like a mafia, but the legal kind.
Consumer & Bazaar Products (~80% revenue)
This is where the real magic happens:
- Adhesives & Sealants (53%) – Fevicol, Fevikwik, Fevistik
- Construction & Paint Chemicals (20%) – Dr. Fixit, Roff
- Art & Craft (6%) – Fevicryl, Hobby Ideas
This segment thrives on brand recall + distribution muscle + pricing power. Once a carpenter trusts Fevicol, he’s not experimenting with ₹10 cheaper glue. Loyalty here is generational.
B2B / Industrial Segment (~20% revenue)
- Industrial adhesives
- Resins
- Pigments & preparations
Lower margins, yes. But sticky relationships (pun intended) and stable cash flows.
Pidilite manufactures ~6,500 SKUs, runs 26 manufacturing plants, works with 29 co-makers, and services 4,800 distributors and 200,000+ dealers. This is not a company—it’s an ecosystem.
4. Financials
