Pidilite Industries Plans Price Hike Amid Rising Input Costs from West Asia Conflict
Pidilite signals further price hike as West Asia war fuels input inflation
Business Standard
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Pidilite Industries, known for brands like Fevicol and Dr Fixit, is contemplating another price increase due to a 40-50% rise in raw material costs linked to ongoing geopolitical tensions in West Asia. Despite these challenges, the company reported a 36.63% increase in net profit for the last quarter of FY26.
- 01Pidilite Industries is considering another price hike due to rising raw material costs.
- 02The company's raw material prices have increased by 40-50% due to geopolitical tensions.
- 03Pidilite's net profit rose by 36.63% to ₹584.15 crore in the last quarter of FY26.
- 04Demand trends remain resilient across urban and rural markets despite inflationary pressures.
- 05The company aims to maintain its EBITDA margin between 20-24%.
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Pidilite Industries, a leading manufacturer of adhesives and construction chemicals in India, is contemplating another price hike due to significant increases in raw material costs stemming from ongoing geopolitical tensions in West Asia. Sudhanshu Vats, the Managing Director, noted that the company's raw material basket has seen a 40-50% increase, particularly impacting key ingredients like Vinyl Acetate Monomer (VAM). Pidilite had previously raised prices in April and May to offset these costs. Despite the inflationary pressures, the company reported a 36.63% rise in consolidated net profit, reaching ₹584.15 crore for the last quarter of FY26, with revenues up 13.24% to ₹3,648.16 crore. Vats expressed optimism about demand trends remaining strong, particularly in rural markets, while also acknowledging that a prolonged crisis could dampen consumer demand. The company remains focused on disciplined execution and growth while aiming to maintain an EBITDA margin of 20-24%.
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The potential price hike could affect consumers' purchasing costs for adhesives and construction materials, impacting both urban and rural markets.
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