Pidilite reported subdued revenue growth (consol) of 5.2% YoY (Rs 13.2bn, below our estimate of Rs 13.7 bn), indicating sluggish demand. However, the above-estimate profit growth and margin expansion are creditworthy. Gross margin (GM) was at a multi-quarter high with 775bps YoY rise to 51.9%, aided by RM tailwinds (VAM and crude prices were down ~30% and ~47% YoY) and improved mix. This resulted in strong EBITDA growth of 46.1% YoY at Rs 3bn (639bps rise in EBITDA margins at 22.8%).