Pidilite margin rebounds to 26.23% as revenue growth outpaces costs
Consolidated revenue rose 21.27% year on year, while net profit grew 30.29%; other income accounted for 9.12% of pre-tax profit.
Filed 04 Aug 2026, 14:15 IST · Pidilite Industries Ltd (PIDILITIND)
Key takeaways
- Consolidated revenue grew 21.27% year on year to Rs 4,551.55 cr, while expenses rose 19.40%.
- Operating margin expanded 1.16 percentage points year on year to 26.23% as revenue growth outpaced costs.
- Net profit grew 30.29% year on year to Rs 883.51 cr, with other income contributing 9.12% of pre-tax profit.
Price around the results
Revenue growth lifted operating profit
Consolidated revenue increased 21.27% year on year and 27.02% sequentially, while operating profit grew 26.88% and 43.35%, respectively. Expenses rose more slowly than revenue in both comparisons, supporting the improvement in operating profit. Net profit growth was faster at 30.29% year on year, helped by a 0.13 percentage-point reduction in the tax rate.
Margin recovered after the Q4FY26 dip
Operating margin expanded 1.16 percentage points year on year and 2.99 percentage points sequentially to 26.23%, because expenses grew 19.40% year on year and 22.07% sequentially against faster revenue growth. The margin had declined to 23.24% in Q4FY26 after 24.11% in Q3FY26, so Q1FY27 marks a clear rebound rather than another sequential contraction. Other income was 9.12% of pre-tax profit, making it a material contributor to reported profit quality.
Pidilite remained above the reported peer median
Pidilite's 26.23% operating margin was 6.96 percentage points above the 19.27% median for the 51 Commodities peers that had reported the same quarter. The year-on-year margin gain came despite a 21.27% increase in revenue, as costs rose by a slower 19.40%. Sequentially, interest expense fell 3.96%, while depreciation was broadly stable.
Past result-day moves were usually positive
After its last eight results, the stock rose seven times and fell once, with a median absolute move of 1.77%. The latest results were filed during market hours, so a current result-day reaction is not included here.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,552 cr | ₹3,583 cr | +27.02% | +21.27% |
| Other income | ₹109 cr | ₹55 cr | +98.48% | +26.52% |
| Expenses | ₹3,358 cr | ₹2,751 cr | +22.07% | +19.40% |
| Operating profit | ₹1,194 cr | ₹833 cr | +43.35% | +26.88% |
| Operating margin (%) | 26.23% | 23.24% | — | — |
| Interest | ₹13 cr | ₹14 cr | -3.96% | -3.12% |
| Depreciation | ₹97 cr | ₹97 cr | +0.21% | +0.63% |
| Profit before tax | ₹1,192 cr | ₹777 cr | +53.48% | +30.06% |
| Tax | ₹308 cr | ₹193 cr | +60.25% | +29.43% |
| Net profit | ₹884 cr | ₹584 cr | +51.25% | +30.29% |
| EPS (₹) | ₹8.57 | ₹5.69 | +50.62% | -35.17% |
Operating margin of 26.23% compares with a Commodities sector median of 19.27% across 51 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 26.23% after the 2.99 percentage-point sequential rebound.
- Whether expenses continue to grow more slowly than revenue, after 19.40% versus 21.27% year on year.
- Whether other income remains close to 9.12% of pre-tax profit.