Nuvama Institutional Investors maintained its ‘Buy’ rating on Pidilite Industries. The brokerage has a target price of Rs 3,785, implying an upside of 23.3% from current levels for the Pidilite Industries share price. The brokerage house is betting big on the company’s strong Q1 performance and continues to see Pidilite Industries as a compounding machine.
Nuvama on Pidilite Industries: Tile adhesives a high-growth segment
The Nuvama analysts who met the Pidilite Industries management highlighted that tile adhesives continue to be a high-growth story due to low penetration and a comprehensive portfolio.
Secondly, the company is betting big on its paints brand – Haisha Paints. As per the management, though it is slightly short of initial expectations, it is “improving steadily quarter-on-quarter and month-on-month.”
Nuvama on Pidilite Industries: Management confident of double-digit revenue growth
Further, the company’s management stated that it is confident of overall double-digit revenue growth with the aspiration for double-digit volume growth. The EBITDA margin is expected to be at the higher end of 20–24%.
Pidilite Industries’ revenue grew 10.5% year-over-year and EBITDA 16%, which was ahead of Nuvama’s estimates.
The company aims to grow revenue by double-digit in FY26. Plus, the core categories are expected to grow 1–2x GDP, while growth categories are likely to expand 2–4x GDP.
Pidilite Industries Q1 FY26 resutls
Pidilite Industries reported a rise in consolidated net profit to Rs 672.41 crore for the first quarter of FY26, as against Rs 567 crore in Q1 FY25. The revenue from operations increased to Rs 3,753 crore in Q1 FY26, a surge of 10.5% YoY, from Rs 3,395.35 crore during the same period a year ago.
Pidilite Industries’ total income came in at Rs 3,838.81 crore, up from Rs 3,449.29 crore in the corresponding quarter of the previous year.
Pidilite Industries stock performance
The share price of Pidilite Industries has risen 13% in the last six months and 8.3% year to date. However, the stock has declined 5% over the previous one year.