Macquarie has maintained its underperform rating on Pidilite Industries with a target price of ₹1,300 per share following Q2FY26 results that showed a marginal sales beat and in-line EBITDA. The brokerage said sequential volume uptick in the company’s core Consumer & Bazaar (C&B) segment supported topline growth, while double-digit revenue and EBITDA gains across domestic subsidiaries underscored resilient demand.
Macquarie noted that the company’s demand outlook remains optimistic, backed by a favourable monsoon, GST cuts, and steady expansion in the construction sector. However, it added that the sequential slowdown in business-to-business (B2B) sales weighed on overall momentum, as higher tariffs hit industrial export volumes.
The brokerage believes while retail demand remains encouraging, headwinds from industrial and export-linked segments could cap near-term growth. Margins are expected to remain stable, though input cost volatility and promotional investments may limit expansion.
Disclaimer: The views and recommendations above are those of Macquarie. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
