Pidilite’s Q4 profit rose 36.64% YoY as margins expanded
Revenue grew faster than expenses YoY, but sequential margin erosion and a lower tax rate temper the quality of the profit increase.
Filed 07 May 2026, 19:42 IST · after market close · Pidilite Industries Ltd (PIDILITIND)
Key takeaways
- Consolidated net profit rose 36.64% YoY as revenue grew 14.08% while expenses increased 9.65%.
- Operating margin expanded 3.10 percentage points YoY to 23.24%, but narrowed 0.87 percentage points sequentially.
- The stock gained 1.77% on the first trading day after results, broadly in line with its 2.28% median historical move.
Price around the results
Revenue growth translated into faster operating-profit growth
Pidilite’s consolidated revenue grew 14.08% YoY in Q4FY26, while expenses rose 9.65%, lifting operating profit 31.66%. This cost-to-revenue gap drove the 3.10-percentage-point expansion in operating margin to 23.24%. Sequentially, revenue fell 3.41% and expenses declined 2.31%, so operating profit dropped 6.89%.
Lower tax and other income supported reported profit
The tax rate fell 1.01 percentage points YoY and 0.92 percentage points sequentially, which supported the 36.64% YoY increase in net profit. Other income contributed 7.05% of pre-tax profit, so reported earnings were not driven entirely by operations. Interest expense fell 3.21% YoY but rose 4.59% sequentially.
Margin remains above peers despite an uneven quarterly trend
Operating margin was 23.24%, 4.47 percentage points above the 18.77% median for the 51 Commodities-sector peers that had reported the quarter. The quarterly trend is uneven: margin rose from 20.14% in Q4FY25 to 25.07% in Q1FY26, eased to 23.93% in Q2FY26, recovered to 24.11% in Q3FY26, and then fell to 23.24% in Q4FY26.
Initial market reaction was positive but not unusual
The results were filed after market close, and the stock opened with a 3.67% gap before ending the first session 1.77% higher. Across its eight recent results reactions, the stock rose six times and fell twice, with a median absolute move of 2.28%, making the first-day gain broadly typical. It was up 1.19% after five sessions and 8.40% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,583 cr | ₹3,710 cr | -3.41% | +14.08% |
| Other income | ₹55 cr | ₹60 cr | -8.04% | +0.22% |
| Expenses | ₹2,751 cr | ₹2,815 cr | -2.31% | +9.65% |
| Operating profit | ₹833 cr | ₹894 cr | -6.89% | +31.66% |
| Operating margin (%) | 23.24% | 24.11% | — | — |
| Interest | ₹14 cr | ₹13 cr | +4.59% | -3.21% |
| Depreciation | ₹97 cr | ₹101 cr | -3.86% | +0.42% |
| Profit before tax | ₹777 cr | ₹840 cr | -7.51% | +34.79% |
| Tax | ₹193 cr | ₹216 cr | -10.84% | +29.46% |
| Net profit | ₹584 cr | ₹624 cr | -6.36% | +36.64% |
| EPS (₹) | ₹5.69 | ₹6.07 | -6.26% | -31.45% |
Operating margin of 23.24% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.77% | +2.38% |
| Next session | -0.91% | — |
| 5 sessions | +1.19% | +4.00% |
| 15 sessions | +0.47% | — |
| 30 sessions | +8.40% | — |
Volume on the results session was 5.49× its 20-day average.
What to watch
- Whether operating margin holds above 23.24% after the sequential decline of 0.87 percentage points.
- Whether revenue continues to grow faster than expenses, after the YoY gap of 14.08% versus 9.65%.
- Whether the tax rate remains near 24.79% and other income stays below or around 7.05% of pre-tax profit.