Pidilite Inds. Q2 FY27 Results (NSE: PIDILITIND)
Signal: Margin pressure
The read
Revenue growth accelerated to 20.9% YoY from the recent 10% range, but this is a margin-quality test: calculated consolidated operating EBITDA margin fell to about 20.4% from 23.9% as raw-material cost rose to 44.1% of revenue from 38.0%; standalone PAT still grew 10.4% to ₹647.00 crore, supported by low finance cost and other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,297.59 Cr | +20.9% | -5.6% |
| EBIT margin | 20.4% |
P&L walk
Consolidated revenue rose 20.9% YoY to ₹4,297.59 crore, but raw-material cost increased to 44.1% of revenue from 38.0%, compressing calculated operating EBITDA margin to about 20.4% from 23.9%; finance cost remained low at ₹12.70 crore, while PAT is not visible in the supplied consolidated extract.
Segments
The standalone Consumer & Bazaar segment remained the larger engine at ₹3,197.82 crore revenue and ₹840.99 crore result, while B2B revenue grew 21.8% YoY to ₹820.37 crore but its result declined 3.4% to ₹115.37 crore, indicating greater pressure in B2B profitability.
Key positives
- Consolidated revenue increased 20.9% YoY to ₹4,297.59 crore, materially above the recent 10% growth range.
- Employee benefits plus other expenses grew 15.7% YoY versus 20.9% revenue growth, providing some fixed-cost absorption despite gross-margin pressure.
- Standalone Consumer & Bazaar revenue rose 20.7% YoY to ₹3,197.82 crore and B2B revenue rose 21.8% to ₹820.37 crore.
- Standalone basic EPS rose 10.4% YoY to ₹6.36 and tracked PAT growth, with no dilution signal in the disclosed quarter.
Key concerns
- Gross margin compressed 660bps YoY to 55.9% as raw-material cost rose to 44.1% of consolidated revenue from 38.0%; the filing does not disclose the cause or degree of pass-through.
- Calculated consolidated operating EBITDA margin fell about 350bps YoY to 20.4% despite 20.9% revenue growth, showing current growth is not converting cleanly into operating profit.
- Standalone B2B segment result declined 3.4% YoY to ₹115.37 crore despite 21.8% revenue growth, indicating segment-level margin pressure.
- Six-month operating cash flow declined 20.6% YoY to ₹1,058.82 crore, while trade receivables increased to ₹2,486.69 crore and inventories to ₹1,782.00 crore.
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