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Pidilite delivered impressive Q2FY26 domestic performance with Consumer & Bazaar segment achieving double-digit UVG of 10.4% for the first time in five quarters, while B2B business maintained strong momentum at 9.9% UVG. The company strategically utilized the 50 bps gross margin expansion from benign input costs (VAM down from $980 to $883) to significantly increase advertising and sales promotion spending by 80% YoY, demonstrating commitment to long-term market share gains over short-term margin maximization.

The company achieved total standalone UVG of 10.3% with value growth of 10.4%, showcasing healthy volume-value balance. Both key segments performed well - Consumer & Bazaar leading with double-digit growth after a five-quarter gap, and B2B business maintaining consistent high single-digit growth. This broad-based performance indicates successful execution of the company's strategy to drive growth across all customer segments while maintaining pricing discipline.

Export business faced headwinds during the quarter, declining due to geopolitical uncertainty and tariffs in some international markets. This represents a manageable challenge given exports' relatively small contribution to total revenue (~5.3%), and management's focus remains on strengthening domestic market position where the company holds leadership positions across categories.

Despite significant increase in A&SP spending by 150-160 basis points as percentage of sales, the company maintained EBITDA margins at Q2 FY25 levels through improved operational leverage across cost areas. Non-operating income was impacted by dividend payments and lower treasury yields, but the core operational performance remained strong with effective cost management enabling strategic marketing investments.