Pidilite Industries Q1 Results Review - Inline; Outlook Remains Healthy: ICICI Securities

ICICI Securities Report

In Q1FY25, Pidilite Industries Ltd. reported consolidated revenue growth of 3.7% YoY (five-year compound annual growth rate of 11%) driven by 3% / 7% YoY growth in consumer and bazaar / B2B segment.

Standalone entity witnessed healthy underlying volume growth of 9.6% YoY with domestic C&B segment UVG of 8% YoY and B2B segment UVG of 18% YoY.

Consolidated operating profit margin expanded 235 bps YoY (+406 bps QoQ) due to raw material cost declining 479 bps YoY (-38 bps QoQ), resulting in Ebitda / adjusted profit after tax growth of 15% / 21.1% YoY.

Management stated demand was challenging in Q1 (impacted by general elections and adverse weather) but it is confident of medium-term double-digit UVG aided by healthy real estate market.

It maintains margin guidance of 20-24% in the medium term. We tweak our PAT estimates; downgrade the stock to Hold with a rolled-over Jun’25E target price of Rs 3,097.

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