Pidilite Industries Ltd (PIDILITIND) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, please hold for a minute, we will join we will start shortly.
Moderator: Ladies and gentlemen, good day and welcome to the Pidilite Industries Limited Q2 FY '27 earnings conference call, hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Arun Baid from ICICI Securities. Thank you, and over to you, Mr. Arun.
Arun Baid (ICICI Securities): Good afternoon, ladies and gentlemen. On behalf of ICICI Securities, I welcome you all to the Q2 FY '27 post results concall of Pidilite Industries. From the management side, we have Mr. Anshu Vats, MD, Mr. Kavinder Singh, Joint MD, Mr. Sandeep Batra, ED and CFO, Mr. Amber Agarwal,
Arun Baid (ICICI Securities): and Mr. Bhavesh Joshi, Senior Vice President - Domestic Accounts and Taxation. Now, I hand over the call to to Mr. Batra for the opening remarks. Over to you, sir.
Sandeep Batra (Pidilite Industries Ltd): Thank you. Thank you, Arun, and good afternoon everybody and apologies for this slight glitch, I don't know, there was some connectivity challenge. But anyway, we have now joined, and I will quickly give a brief update on the second quarter H1 results, which were approved at our board meeting yesterday. In the current quarter, our standalone revenue was a shade under 4,000 crores, with a growth of 21.7% in nominal terms, and underpinned by underlying volume growth of 10. 7%, which was broad based. Consumer and Bazaar Hello?
Sandeep Batra (Pidilite Industries Ltd): Sorry.. So the So I was just saying that the growth in the quarter was quite broad based with Consumer and Bazaar UVG was 11.1 and B2B UVG was 9.2. However in the quarter we saw the maximum heat and impact on account of elevated input costs and gross margins. Standalone declined sequentially, as well as, year-on-year. As an indicator of the kind of extent of the input cost inflation, we always refer to what has been the VAM consumption rate which in the second quarter was $1,630, nearly double of what it was in the same period last year and versus $1,370 in the first quarter. So first quarter, the second quarter saw the full impact of elevated input costs. However, because of the robust top line growth we got operating leverage, and against the 720 basis points decline in gross margin, our EBITDA was lower by 430 basis points and came in came in at the lower end of our range at 20.4%. Our subsidiary performance was good for the quarter with international subsidiaries growing by 21.8%, good growth in our businesses in Dubai, Bangladesh, Kenya, Thailand. All four of them grew in excess of 20%. EBITDA in the international subsidiaries also improved with a growth of 53% versus the top-line growth of 21.8%. Domestic subsidiaries too delivered a strong quarter with a revenue growth of 22.2%, again led by Consumer and Bazaar businesses, which grew by 22%. and B2B businesses grew by also 22%. The only business that saw some revenue headwinds was Nina, which had challenges because they did not have adequate work front available for doing water proofing. But I think as we have called out in the first quarter itself, where we saw the benefit of lower input cost and the benefit of pricing that we had taken, that it is better to look at the H1 as a representation of the company performance, and therefore in H1, if I were to look at our standalone revenues, grew by 22%. H UVG was 11%, again broad based. Consumer and Bazaar UVG for H1 was 11.6%, and B2B UVG was 8.3%. And our H1 EBITDA again came in strong, very much towards the upper end of the range at 23.5%. So that's all I had in terms of overview of the quarter and the first half. Open the floor for questions.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abneesh Roy
Moderator: Sharma, please go ahead.
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