Pidilite Industries Limited, a household name in India renowned for its adhesives, sealants, construction chemicals, and specialty products, has announced truly impressive financial results for the second quarter of the fiscal year 2025, which concluded on June 30, 2025. The company delivered a stellar performance, marked by record sales, significant profit growth, and a landmark decision to consider issuing bonus shares for the first time in fifteen years. This strong showing reinforces Pidilite’s leading position in the market.
Pidilite Industries’ Stellar Financial Performance in Q2 FY25
The quarter saw Pidilite achieve net sales of Rs 3,753.10 crore, representing a robust 10.54% year-on-year growth. This figure is notably the highest the company has reported in the last five quarters, indicating a strong operational momentum. The operating profit, or PBDIT (Profit Before Depreciation, Interest, and Tax), stood at an impressive Rs 940.98 crore, resulting in a healthy operating profit margin of 25.07%.
Profit Before Tax (PBT) reached a record high of Rs 830.76 crore, paving the way for a net profit (Profit After Tax) of Rs 672.41 crore. This represents a significant 18.61% year-on-year increase, showcasing the company’s enhanced profitability and efficient cost management. Earnings Per Share (EPS) for the quarter was reported at Rs 13.22, reflecting this improved financial health.
Here’s a quick look at the key financial highlights for Q2 FY25:
| Parameter | Value | Comments |
|---|---|---|
| Net Sales | Rs 3,753.10 crore | 10.54% YoY growth, highest in 5 quarters |
| Operating Profit (PBDIT) | Rs 940.98 crore | Operating margin at 25.07% |
| Profit Before Tax | Rs 830.76 crore | Record high |
| Profit After Tax (Net Profit) | Rs 672.41 crore | 18.61% YoY growth |
| Earnings Per Share (EPS) | Rs 13.22 | Improved profitability |
| Non-operating Income | Rs 85.71 crore | Highest in last five quarters; sustainability uncertain |
Robust Volume Growth and Margin Expansion Drive Performance
Beyond the headline numbers, Pidilite demonstrated impressive underlying performance. The company reported an overall volume growth of approximately 15% during the quarter. This growth was broad-based, with the Consumer & Bazaar (C&B) segment showing an underlying volume growth (UVG) of 7%, while the Business-to-Business (B2B) segment saw a remarkable UVG of 19%. This indicates strong demand across both retail and industrial applications for Pidilite’s diverse product portfolio.
For the first half of FY25, Pidilite’s stand-alone revenues reached Rs 6,099 crore. The company also achieved a significant gross margin expansion of 380 basis points compared to the first half of the previous year. Furthermore, the stand-alone EBITDA margin expanded to 24.6%, up by 143 basis points year-on-year. This improvement highlights Pidilite’s effective management of raw material costs and operational efficiencies.
The company maintains a healthy working capital position and is generating strong cash inflows. These positive indicators support ongoing strategic investments in new facilities and expansion of its extensive distribution network, ensuring future growth.
Historic Bonus Share Proposal and Record Dividend Bonanza
In a significant announcement, Pidilite Industries declared a record-high dividend of Rs 10.00 per share for the quarter. Adding to the excitement, the Board of Directors, in a meeting held on August 6, 2025, considered a proposal to issue bonus shares. This is a momentous occasion, as Pidilite last issued bonus shares in March 2010, making this the first such proposal in 15 years. The bonus issue is subject to shareholder approval. The board also proposed a special interim dividend for FY 2025-26, to be formally declared at the same board meeting. Following SEBI regulations, the trading window for Pidilite securities remains closed until August 8, 2025.
Analyst Outlook and Future Prospects
Market analysts have taken note of Pidilite’s robust performance. For instance, global financial services firm Jefferies, as reported on May 12, 2025, raised its price target for Pidilite shares to Rs 3,270 from Rs 3,040, while maintaining a ‘Hold’ rating. This positive adjustment reflects confidence in the company’s trajectory and the overall Pidilite Industries’ stellar performance.
While the company’s non-operating income peaked at Rs 85.71 crore in the recent quarter, its long-term sustainability remains an area of observation. Despite this, Pidilite’s core business continues to demonstrate strength and resilience. The company’s consistent growth, strategic investments, and shareholder-friendly initiatives position it well for continued success in the Indian market.
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