Pidilite Industries stock soars over 2% as Q1 profit rises 18.6% YoY; special interim dividend, bonus issue approved

Pidilite Industries' stock surged 2.34% to an intraday high of ₹3,117.90 per equity share on the National Stock Exchange (NSE) on Thursday, August 7, following the release of its first-quarter earnings for the June quarter of the 2025-26 financial year (Q1FY26).

The adhesive manufacturing firm announced an 18.6% year-on-year (YoY) increase in its consolidated net profit to ₹672 crore during the quarter under review, as against ₹567 crore in the same period of the previous fiscal year. The profit growth was bolstered by volume growth and healthy operating margins.

The company’s revenue from operations rose 10.53% YoY to ₹3,753 crore in the first quarter of FY26, compared to ₹3,395 crore in Q1FY25. The top-line growth was underpinned by UVG (Underlying Volume Growth) of 9.9% across categories and geographies, it said in a regulatory filing dated Wednesday.

Its consumer & bazaar segment contributed ₹3,006.70 crore in revenue during the reporting quarter, jumping 9.7% YoY from ₹2,740.83 crore in the year-ago quarter.

Its revenue from the business-to-business segment stood at ₹806.6 crore in Q1FY26, soaring 11.2% YoY from ₹725.58 crore in the June quarter of FY25.

At an operational level, the company’s EBITDA (earnings before interest, tax, depreciation and amortisation) grew 16% YoY to ₹941 crore during the reporting period, compared to ₹812 crore in Q1 of the previous fiscal year.

Its EBITDA margin improved by 100 basis points (bps) to stand at 25% in the June FY26 quarter, as against 24% in the same quarter of FY25.

Commenting on the results, Sudhanshu Vats, the Managing Director of Pidilite Industries Ltd, said: “Despite the challenging macro-economic demand environment, we have delivered strong underlying volume growth and healthy operating margins.”

Pidilite will continue to remain cautiously optimistic as the domestic operating environment improves, driven by good monsoons, steady demand conditions, especially in the construction sector, lower interest rates, and recent measures to improve liquidity.

The company, however, remains vigilant of geopolitical developments with their likely impact on the supply chain disruptions and uncertainty around global tariffs, he said.

“We remain committed to our strategic agenda of delivering consistent, profitable volume led growth through investment in our brands, supply chain, and people,” Vats stated.

Board approves special dividend

The company’s board of directors approved a special interim dividend of ₹10 per equity share with a face value of ₹1 each for FY26.

Furthermore, it fixed August 13, 2025, as the record date and August 29 as the date of payment to eligible shareholders.

Bonus issue announced

Its board also approved the issuance of bonus equity shares in the proportion of 1:1. This means members will receive one equity share of ₹1 each for every one fully paid-up equity share of ₹1 they hold as on the record date, August 13. The bonus is subject to statutory and regulatory approvals.

Shares of Pidilite were trading 0.06% lower at ₹3,040 apiece, at around 1:04 pm.

The firm has a total market capitalisation of ₹1.55 lakh crore, as of August 7, 2025, as per