Pidilite Industries shares soar 9% on delivering decent Q3FY25 results

Looking ahead, Pidilite remains cautiously optimistic, banking on improved demand

Shares of Pidilite Industries skyrocketed 8 percent to Rs 2,992 apiece on January 23, fueled by the company’s solid performance in the third quarter of FY25.

Pidilite reported a 9 percent year-on-year (YoY) increase in net profit, reaching Rs 557 crore, while revenue from operations climbed 7.6 percent to Rs 3,368.91 crore. The performance was driven by growth in both its Consumer & Bazaar (C&B) and B2B segments.

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The C&B segment posted a 5 percent YoY increase in revenue to Rs 2,670 crore. However, segmental EBIT rose modestly by 2 percent YoY to Rs 790 crore, with the EBIT margin narrowing by 90 basis points to 29.4 percent. Meanwhile, the B2B segment shone brightly, delivering a 19 percent YoY surge in revenue to Rs 760 crore. Segmental EBIT skyrocketed 76 percent YoY to Rs 130 crore, with margins expanding by a robust 580 basis points to 17.6 percent.

At the operational level, EBITDA grew 8 percent YoY to Rs 800 crore, while the EBITDA margin held steady at 23.7 percent for Q3FY25.

Commenting on the results, Managing Director Bharat Puri highlighted the company’s resilience amidst muted demand in both urban and rural markets. "Despite the challenging demand environment, we delivered steady progress with strong revenue and underlying volume growth, alongside healthy profitability levels," he stated in the earnings release.

Looking ahead, Pidilite remains cautiously optimistic, banking on improved demand driven by a favorable monsoon season and increased construction activity. The company reaffirmed its commitment to sustainable, volume-led growth through strategic investments in brands, supply chains, and talent development.

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