Pidilite Industries (PIDILIT on NSE) opened lower after the firm reported Q2FY27 EBITDA of ₹877.5 cr, a 3.1% YoY decline and 9.3% under the ₹942 cr consensus.
Revenue surged 20.9% YoY to ₹4,298 cr, beating the ₹4,245 cr estimate, yet gross margin slipped to 48.6%, a 640‑basis‑point drop from 55% a year earlier, driven by a 38% rise in COGS to ₹2,210.9 cr.
Net profit edged up 7.2% YoY to ₹626.5 cr, a 5% rise over ₹584.6 cr a year ago, but still 7% below the ₹670 cr forecast.
Segment‑level detail shows Consumer & Bazaar revenue up 20.7% to ₹3,423.6 cr, while B2B revenue grew 19.9% to ₹912.6 cr; EBIT margins fell to 26.3% and 12.5% respectively, reflecting margin compression across the board.
MD Sudhanshu Vats told CNBC‑TV18 that the company would sustain its first‑half momentum into H2, investing in brands, innovation and distribution, though material cost inflation remains a risk.
Analysts now target a 12% YoY growth for FY27 but warn that continued cost pressure could keep margins muted; Pidilite will report Q4 FY27 results on Jan 31.