Pidilite Industries Rises 8% on Strong Q3 Results: Revenue and Profitability Drive Investor Confidence

Market Performance

Shares of Pidilite Industries climbed 8% to ₹2,992 in early morning trade on January 23 following its robust performance in Q3 FY25. The stock rallied as investors responded positively to the company's solid revenue and profitability growth.

Financial Highlights

• Revenue from Operations: ₹3,368.91 crore, marking a 7.6% YoY growth.
• EBITDA: ₹800 crore, an 8% YoY increase.
• EBITDA Margin: Maintained at 23.7% for the quarter.
• Net Profit: ₹557 crore, up 9% YoY.

Segmental Performance

1. Consumer & Bazaar (C&B):

• Revenue rose by 5% YoY to ₹2,670 crore.
• EBIT grew 2% YoY to ₹790 crore, with EBIT margin declining by 90 basis points to 29.4%.

2. B2B Segment:

• Revenue surged 19% YoY to ₹760 crore.
• EBIT soared 76% YoY to ₹130 crore, with a significant margin expansion of 580 basis points to 17.6%.

Operational Insights

Managing Director Bharat Puri attributed the company's resilience to its focus on revenue growth and operational efficiencies despite muted demand in urban and rural markets. Strategic investments in branding, supply chains, and talent development have supported the company's performance.

Future Outlook

Pidilite remains cautious as demand increases due to increased construction activities and favourable monsoon conditions. The company plans to sustain growth through continued investments in key areas.

Summary

Despite demand challenges, Pidilite Industries demonstrated resilience in Q3 FY25, delivering strong growth across key metrics. With a focus on strategic investments and sustainable growth, the company remains well-positioned for the future.