Pidilite Industries Expects Export Rebound After Indo-US Tariff Revision, Double-Digit Volume Growth In FY’27

Pidilite Industries anticipates a quick recovery in its US exports, which slowed in Q3 FY’26, 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-results briefing.

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

During the quarter, Pidilite's industrial products revenue under its Business-to-Business (B2B) segment 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 — towards the end of this quarter and hopefully moving forward.”

Besides its B2B business, which supplies to many industries, will also benefit from an 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, stood at ₹993 crore in the third quarter of FY’26. Vats expects this “will correct as the tariff is rationalised”.

On the Free Trade Agreement between India and the EU, he said it is a very positive deal. However, he added that by the time the European Parliament ratifies the agreement, it could take six to nine months, meaning the impact would be felt towards the end of the year.

“But we are scouting around like many companies. It should strengthen our export portfolio, especially in terms of geographic diversification. That’s really good news for us in the medium term,” he said.

On the outlook, Vats said Pidilite remains committed to “delivering double-digit underlying volume growth in Q4” and will “continue to do so in FY’27”.

“If you look at our track record, we have been doing this quarter-on-quarter for a couple of years now. We will continue to lift it gradually,” he said.

“If you look at our nine-month performance of FY’26 versus FY’25, we managed to lift underlying volume growth by close to 100 bps,” Vats added.

On whether depreciation of the Indian rupee against the US dollar impacted raw material costs, he said prices remained benign and the company was able to absorb the impact.

“We will continue to manage and navigate this, especially if raw material prices remain benign, which has been the case so far,” he said.

According to Vats, rural markets have again grown faster than urban markets for Pidilite, though urban demand has also started improving over the past few quarters.