Pidilite Expects Export Rebound After Indo-US Tariff Revision, Double-Digit Volume Growth In FY27

Pidilite Industries anticipates a quick recovery in its US exports, which slowed in Q3 FY26, following the India-US tariff revision, said its Managing Director Sudhanshu Vats on Wednesday.

The company expects to continue its 'double-digit underlying volume growth' in the fourth quarter, and in the coming fiscal year, FY'27, he said in a post result briefing.

Pidilite Industries on Tuesday declared its earnings for the December quarter, in which it reported a 12 per cent rise in consolidated net profit at Rs 623.84 crore on a year-to-year basis. Its revenue from operations stood at Rs 3,709.91 crore, up 10.12 per cent.

During the quarter, Pidilite's industrial products revenue under its Business to Business (B2B) was impacted by lower exports. Its EBIT also declined in Q3 by 77 bps due to slower exports.

When asked about the impact of the India-US deal, Vats said: "Our export component, fortunately for us, is small, but we do export to the US. That has slowed down quite a lot."

"As a matter of fact, it declined in Q3, and I think that it will bounce back very quickly. In my opinion, towards the end of this quarter and hopefully moving forward," he said.

Besides, its B2B business, which supplies to many industries, will also benefit from the increase in exports.

"So things like leather chemicals, footwear, some of these categories as well, which classically come under our B2B business, will basically get an indirect impetus from the India-US tariff revision," Vats added.

Total exports of Pidilite, which manufactures adhesives, sealants and construction chemicals, were at Rs 993 crore in the third quarter of FY'26. Vats expects this "will correct as the tariff is rationalised".

Over the Free Trade Agreement between India and the EU, he said it's a very positive deal. However, said that by the time the European Parliament ratifies the trade agreement, it will take over six to nine months, hence the impact will come by the end of the year.

"But we are scouting around like many companies that are there. It should strengthen our export portfolio, especially in a geographically diversified portfolio. That's really good news for us in the medium term," he added.

When asked about the outlook, he said Pidlite remains committed to "delivering the double-digit underlying volume growth in quarter four" and will also "continue to do so in FY27".

"If you look at our track record, we have been doing this quarter-on-quarter for a couple of years now. So I think that's something which will continue. We desire to continue to lift it a little bit. we will keep moving it up," he said.

"If you were to look at our nine-month performance of FY26 versus FY25, we managed to lift the underlying volume growth by close to about 100 bps," said Vats.

On being asked whether there was any impact on depreciation of the Indian rupee against US dollars on the raw materials, he said prices remained benign and were able to absorb it. "So we will continue to manage this and navigate it, especially if the raw material prices remain benign, which has been the case up to now," he said.

According to Vats, rural has again grown ahead of urban markets for Pidilite, but over the last couple of quarters, urban has also started moving.