Sudhanshu Vats, Managing Director, Pidilite Industries
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cueapi
Pidilite Industries, an adhesives and construction chemicals company, has managed to pass on the incremental rise in raw material prices triggered by the escalation in the West Asia conflict.The company posted a 30 per cent rise in net profit to ₹884 crore (₹678 crore), while consolidated revenue increased 21 per cent to ₹4,551 crore in the June quarter.Sudhanshu Vats, Managing Director, Pidilite Industries, said the performance was driven by sustained demand, proactive pricing and operating leverage from higher sales.“We delivered underlying volume growth of 11 per cent, supported by disciplined execution and timely price increases. We also benefited from low-cost inventory carried from the previous quarter and managed costs effectively while continuing to invest behind our brands,” he said.The company raised prices across its consumer and bazaar portfolio by between 2 per cent and 12 per cent during the quarter, with industrial products witnessing steeper hikes as raw material costs were passed through to customers.Pricing strategy focused on cost recoveryVats stressed that Pidilite’s pricing strategy was aimed at recovering increases in raw material costs rather than expanding margins.“We do not take price increases to improve margins. Our philosophy is to pass on only the absolute increase in raw material costs while absorbing part of the inflation ourselves. It is a win-win approach for customers and channel partners,” he said.The company indicated that if raw material prices soften further, it will pass on the benefit through trade rebates, consistent with its long-standing pricing policy.Supply diversification cushions raw material volatilityRaw material costs have remained volatile following geopolitical tensions in West Asia. Vats said key inputs such as vinyl acetate monomer (VAM) saw prices surge from around $900 a tonne to nearly $2,000 before easing to about $1,200. Other inputs, including butyl acrylate, styrene and toluene, were also affected by supply disruptions, logistics constraints and domestic gas-related issues.To reduce supply-chain risks, the company diversified its sourcing across multiple suppliers and geographies, eliminating dependence on single-source vendors. It has also created buffer stocks of packaging material feedstock to support suppliers facing supply disruptions.Company retains growth and margin outlook for FY27On demand trends, he said, urban markets outperformed during the quarter, while rural demand also remained healthy. Urban demand, which had lagged earlier, has now caught up, with both urban and rural markets recording double-digit growth.The company, however, said it was too early to assess the impact of the monsoon on rural demand and would continue to monitor the situation.For FY27, Pidilite reiterated its expectation of delivering double-digit underlying volume growth. It also maintained its medium-term EBITDA margin guidance of 20-24 per cent, while indicating that, given the strong first quarter, margins for the full year could settle towards the middle to upper end of that range.Published on August 6, 2026
