Pidilite Industries will consider further price increases in the second half of FY27 to offset raw material inflation, with the company expecting to maintain its EBITDA margin at the higher end of its 20-24 per cent guidance.
Sudhanshu Vats, Managing Director, Pidilite Industries, said the company has already implemented price increases of 3-5 per cent in October, following hikes of about 12 per cent in the first quarter.
Further increases of 3-5 per cent could be considered in Q3, depending on the brand and business, with another 2-3 per cent possible in the March quarter if costs warrant, he said.
The pricing actions come amid volatility in vinyl acetate monomer (VAM), a key raw material used in Fevicol. Prices, about $800–900 a tonne last year, surged to nearly $2,000 after the West Asia crisis before cooling sharply and then rising again.
Vats said VAM consumption costs rose to about $1,600 in the second quarter from about $1,350 in the first quarter, pressuring margins. The company withdrew rebates offered when spot prices declined and adjusted pricing to reflect the subsequent cost increase.
Despite the price hikes, Pidilite has not seen any significant impact on demand so far. Vats said demand remained steady across the first half and into the third quarter, with both rural and urban markets contributing to growth.
The company expects underlying volume growth to remain in double digits, barring significant macroeconomic headwinds, including a worsening West Asia crisis or the impact of El Niño. It also expects repair and renovation demand to provide resilience if higher interest rates affect new housing and construction.
Around 70 per cent of Pidilite’s business comes from repair and renovation, while new construction accounts for the remaining 30 per cent, Vats said.
Quick commerce and e-commerce continue to grow strongly and account for about 15 per cent of the company’s consumer business, with smaller, consumer-focused products benefiting in particular.
Pidilite is also seeing traction in growth brands such as Roff, Dr Fixit and its projects business, alongside its core Fevicol franchise. The company is expanding its direct distribution network, which crossed 25,000 points during the quarter, while continuing investments in plant modernisation, automation and capacity for Roff.
On its decorative paints business, Vats said the company was seeing encouraging progress in smaller towns and rural-urban markets, where it would continue to refine its go-to-market model.
The company does not hedge raw material prices and will adjust pricing dynamically as input costs evolve, he said.
Published on October 29, 2026
