Updates

12th August, 2026 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14th floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock Code – 500331 Stock Code - PIDILITIND Dear Sir, Sub: Transcript of the Earnings Call ----------------------------------------------------------- Dear Sir, We enclose herewith, a transcript of the Earnings Call held with Analyst/Investors on 5th August, 2026. A recording of the transcript is available on the website of the Company viz. www.pidilite.com. Kindly take the same on your records. Thanking You, Yours faithfully, For Pidilite Industries Limited Manisha Shetty Company Secretary Encl. as above Regd. Office Pidilite Industries Limited Regent Chambers, 7th Floor Corporate Office Jamnalal Bajaj Marg Ramkrishna Mandir Road 208 Nariman Point Andheri - E, Mumbai 400059, India Mumbai 400 021 T + 91 22 2835 7000 2835 7952 / 2835 7365 F +91 22 2830 4482 www.pidilite.com ClN:L24100MH1969PLC014336 “Pidilite Industries Limited Q1 FY27 Earnings Conference Call” August 05, 2026 MANAGEMENT: MR.SUDHANSHU VATS – MANAGING DIRECTOR – PIDILITE INDUSTRIES LIMITED MR.KAVINDER SINGH – JOINT MANAGING DIRECTOR – PIDILITE INDUSTRIES LIMITED MR.SANDEEP BATRA – EXECUTIVE DIRECTOR, FINANCE AND CHIEF FINANCIAL OFFICER – PIDILITE INDUSTRIES LIMITED MR.BHAVESH JOSHI – SENIOR VICE PRESIDENT, DOMESTIC ACCOUNTS AND TAXATION – PIDILITE INDUSTRIES LIMITED MODERATOR: MR.PRANAV MEHTA – EQUIRUS SECURITIES Page 1 of 21 Pidilite Industries Limited August 05, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Pidilite Industries Limited Q1 FY27 Earnings Conference Call hosted by Equirus Securities. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranav Mehta from Equirus Securities. Thank you, and over to you, sir. Pranav Mehta: Yes. Thank you, Palak. Good afternoon, everyone. Thank you for joining this call. From the management side, we have Mr. Sudhanshu Vats, Managing Director; Mr. Kavinder Singh, Joint Managing Director; Mr. Sandeep Batra, Executive Director, Finance and CFO; and Mr. Bhavesh Joshi, Senior VP, Domestic Accounts and Taxation. I'll now hand over the call to Sandeep sir for his opening remarks. Over to you, sir. Sandeep Batra: Thank you, Pranav, and good afternoon, and a warm welcome to everybody on the call. I'll just keep my opening comments brief. And the Board at its meeting yesterday approved the results for the first quarter of the current fiscal. And of course, after that, we had our AGM at which the proposed dividend of INR11.50 was approved by the shareholders. Coming to the performance for the quarter. Standalone revenues grew by 22.2% with an underlying volume growth of 11.3%. In absolute terms, the revenue was INR4,237 crores. As we had mentioned in the full year earnings call, we had taken price increases and which were taken across all categories to offset the increase in input costs. If you look at the underlying volume growth for the quarter, Consumer and Bazaar businesses, underlying volume growth was 12.2% and B2B was 7.3%. The reason why the B2B underlying volume growth was lower was largely because of lower exports. B2B exports UVG for the quarter was -8.4%. And overall exports for the company also degrew in the first quarter, largely because of geopolitical issues in some of our key markets. Gross margins at 52.5% were lower than last year same period by 90 basis points. VAM consumption in the quarter was at $1,370 as compared to last year $924 and the fourth quarter was in the $800 range. However, total costs below gross margin increased slower than the revenue growth. The total cost increase was 14.5%. A large chunk of that was advertising and sales promotion and this operating leverage flowed into the EBITDA. Page 2 of 21 Pidilite Industries Limited August 05, 2026 EBITDA margins at 26.4% improved by 80 basis points quarter-on-quarter and profit after tax grew by 27.7%. This was a standalone performance. If I look at the performance of the subsidiaries, both the domestic as well as the overseas subsidiaries reported double-digit revenue growth. Domestic subsidiaries grew by 11.5% and international subsidiaries grew by 12% Again, the growth there was led by Consumer and Bazaar businesses in the domestic subsidiaries, which grew by 17%. And the B2B part of the domestic subsidiaries had a modest growth of 3.5%. International subsidiaries, again, growth was reasonably broad-based with Bangladesh, Egypt and Kenya subsidiaries recording much better than their past growth records. Consolidated revenues at INR4,541 crores were up by 21.3%. EBITDA margin improved by 120 basis points over same period last year, and profit after tax grew by 30.3%. So that's all from an opening remarks point of view. Happy to open the floor for questions. Moderator: Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Abneesh Roy from Nuvama. Abneesh Roy: Congrats on great numbers. First question is on the exports. When the geopolitical issues get resolved, do you expect bumped up demand or pent-up demand or some part of this demand was met by other suppliers? If you could clarify on that. Sudhanshu Vats: Yes. So I think, Abneesh, thank you, first of all, and always good to hear from you. Thank you for the results. We've delivered a strong set of results. So thank you very much. I think on exports, so as the situation normalizes, a lot of our export business will come back. It will come back. Now because most of our contracts are there. Now it is also possible that in this interim period, some of the people may have made some alternate arrangements, and I do not want to get into specifics of it. But suffice to say, to answer your question that as the geopolitical situation stabilizes, our exports will come back. Abneesh Roy: Sure. The largest paint company has put up the VAM/VAE facility, and you do compete with that company in many segments. From a relative positioning perspective in terms of cost and say, pricing and product pricing, does this change anything meaningfully for you? Sudhanshu Vats: So Abneesh, our understanding is that I think it's best, of course, answered by the company that has put up the capacity. First of all, fundamentally, there are 2 business models, and both business models are good business models. So, you could have Page 3 of 21 Pidilite Industries Limited August 05, 2026 something captive and perhaps operate in the entire value chain or you could have your brand and your product and you focus on your brand and product quality and servicing the customer. And from the procurement point of view, you operate through basically what is in the market and you basically ride the crests and troughs of the raw material. So, I think the point is we are in the latter camp, I think as you are aware, I don't think it should change anything materially. And in our assessment multiple times over, when we have done it ourselves, and also when we have looked at and talked to a few of the experts in this space who know this very well and some of the large companies across the globe, I think the competitive advantage case for India from availability of base raw material, from the point of view of the scale needed to get that kind of cost leverage and advantage does not seem to come through in all our conversations. I just wanted to share that. Having said that, I think they have chosen to do this. My understanding is also it may or may not be directly for adhesive. It may be for other things a [Showing first 8,000 characters — download PDF for full document]