Q2 FY27 earnings call transcript: revenue up 21.7%, VAM at $1,630, EBITDA margin 20.4%
Pidilite shared the transcript of its Q2 FY27 earnings call, held on 29 October 2026.
By ScoutQuest · · 2 min read
- Stand-alone revenue growth
- 21.7%
- Underlying volume growth
- 10.7%
- EBITDA margin (Q2)
- 20.4%
This update is the transcript of the Q2 FY27 earnings call held on 29 October 2026, covering results that management said were approved by the Board the previous day.
Q2 FY27: strong growth, softer margins
- Stand-alone revenue grew 21.7% in nominal terms
- Underlying volume growth was 10.7%, described as broad-based, with both the Consumer and Bazaar and the B2B businesses contributing
- EBITDA margin came in at 20.4%, the lower end of the company's stated range
- Gross margin fell 720 basis points; strong top-line growth gave operating leverage, so the fall in EBITDA was smaller than the fall in gross margin
The raw material story
Management said the quarter saw the maximum hit from elevated input costs, with a lot of volatility and uncertainty, and noted that several raw materials have crude linkage. VAM, used as the representative raw material for the portfolio, was at $1,630 on a consumption basis in Q2, nearly double the same period last year and higher than in the first quarter.
How the pricing was described
- Management said it prices on a replacement margin basis, and that it was proactive on pricing in the first quarter
- Q1 also benefited from low-cost inventory carried from the previous quarter
- As Q2 began, spot prices cooled sharply; management said it gave a rebate because local competitors carry little inventory and track spot prices
- The company's stated principle is to keep a premium to the market while giving primacy to consumers
Subsidiaries
- International subsidiaries grew 21.8% in revenue, with EBITDA growing faster than revenue; the businesses in Dubai, Bangladesh, Kenya and Thailand all grew strongly
- Domestic subsidiaries grew 22.2% in revenue, led by the Consumer and Bazaar and B2B businesses
- Nina saw revenue headwinds because it did not have adequate workfront available for waterproofing work
First half
- Management said H1 is a better representation of performance than a single quarter, given the swing in input costs
- H1 EBITDA margin was 23.5%, towards the upper end of the range, helped by the first quarter's pricing and inventory position
What a reader can take away
- Value growth is running ahead of volume growth, which is consistent with price increases taken to offset input costs
- Margin direction depends on where raw material prices settle and on the company's pricing actions
- Growth was broad-based across categories and geographies, while profitability moved with input costs
Also from Pidilite Industries
Pidilite's gross margins contracted 648 basis points year-on-year
30 Oct 2026
Audio Recording of Q2FY27 Earnings Call Uploaded on Company Website
29 Oct 2026
Pidilite's MD said growth momentum stays strong, with EBITDA margins expected to hit the upper end of 20-24% guidance in Q3 and Q4, and another price hike likely
29 Oct 2026
More numbers
- Stand-alone revenue growth in Q2 FY2721.7%
- Underlying volume growth in Q2 FY2710.7%
- VAM consumption rate in Q2 FY27$1,630
- Q2 FY27 EBITDA margin20.4%
- Decline in stand-alone gross margin720 basis points
- Revenue growth of international subsidiaries21.8%
- Revenue growth of domestic subsidiaries22.2%
- H1 FY27 EBITDA margin23.5%
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.