Jyoti Resins Share: Can It Challenge Pidilite’s Grip on India’s Wood Adhesives Market?

Synopsis: Jyoti Resins and Adhesives Limited is transforming from a regional wood adhesive player into a national challenger. With 20% market share in Maharashtra, 30–35% presence in Gujarat, 3.5 lakh carpenters, expanding capacity, and aggressive branding, Euro is building the scale, distribution, and market reach needed to challenge Pidilite Industries Limited in India’s wood adhesives market. 

For decades, India’s wood adhesives market has been shaped by strong brands, deep dealer relationships, and carpenter-led product influence. Today, Jyoti Resins and Adhesives Limited, through its Euro 7000 franchise, is attempting to change that equation. Backed by rising market share in key states, a 3.5 lakh carpenter ecosystem, capacity expansion from 2,000 to 3,500 tons, and pan-India brand investments, Euro is positioning itself as one of the most serious emerging challengers in India’s wood adhesives industry. 

With a market cap of Rs 1,000 crore, the shares of Jyoti Resins and Adhesives Ltd are trading at Rs 883 and are trading at a PE of 15.2 compared to their industry’s PE of 29.5. The shares have given a return of more than 300% in the last 5 years.

A Regional Adhesive Brand Begins Thinking National

For the last two decades, the wood adhesives market in India has been predominantly influenced by size, geographic coverage, carpenter influence, and channel depth. While there have been several national-level brands dominating this product category since the inception of this market, Jyoti Resins and Adhesives Limited has recently taken a position to make a significant impact on this market with its Euro 7000 brand. 

In its FY26 earnings call, the company’s management explicitly indicated that they no longer view themselves as a regional adhesives manufacturer. Instead, they are laying down the groundwork for their next wave of scalable growth, which will be fuelled by branding, geographic coverage, organisation transformation, and deepening market penetration. 

Notwithstanding a prolonged monsoon in the first half of the year and geopolitical issues in West Asia leading to disruption during the last quarter, the company posted its best-ever quarterly results. 

The company’s revenue in Q4 FY26 increased 18% on a YoY basis, with volumes rising by nearly 16%. The EBITDA margin stayed flat at around 27%, remaining well within the range of the company’s long-term guidance. According to management, these results only represent the start of a much bigger growth story.

An ₹8,000 Crore Market With Plenty of Share to Capture

One of the themes that stood out from the conference call was the magnitude of the opportunity in front of Euro. Management reckoned the opportunity in terms of the Indian wood adhesives market, which they estimated to be over ₹7,500-₹8,000 crore. By comparison, Euro had already created a business worth around ₹300 crore, although management felt that this was just scratching the surface of the available opportunity. 

During the analyst interaction, management candidly pointed out that there was still a “huge gap” between Euro and the industry leader, although they also mentioned that the gap in itself presented a large opportunity for market capture. In the case of Maharashtra, which is amongst the top wood-product manufacturing states in India, Euro already has a market share of close to 20%. 

Management said that Euro had penetration into close to 1 out of every 3-4 counters in the state, indicating room for growth even within its established markets. In Gujarat, where Euro has operated for almost a decade now, management felt that they had created around 30-35% market share, making them confident of replicating their distribution-led strategy in other geographies as well.

Capacity Expansion to Protect Market Share

With rising demand, Jyoti Resins is aggressively scaling up its capacity to ensure it is not left behind in terms of market share when demand peaks. Management revealed that it is currently running at about 65% capacity utilisation levels from a total capacity of 2,000 tonnes per month. 

Brownfield expansion that is 80% complete should be commissioned in the next one or two quarters. After the commissioning of brownfield projects, the capacity of the manufacturing process will jump significantly to 3,500 tonnes per month. The management is of the view that such a project will enable it to generate annual revenues between ₹600 crore and ₹650 crore before any further expansion needs to be done. 

It is evident why Jyoti Resins is creating capacity in advance. For example, in the month of March alone, the capacity reached 2,100 tonnes. This proves how demand can peak suddenly even during high seasons. 

According to the management, capacity needs to be created ahead of time in order to maintain market share in both developed and developing states. Based on such a capacity strategy, management is optimistic about achieving 15%–20% growth annually in volumes for the coming years.

A 3.5 Lakh Carpenter Network as a Competitive Moat

For the wood adhesives business in India, the carpenters play the most important role in recommending and promoting brand loyalty. Having realised this fact very early on, Euro had spent about two decades creating a strong relationship with this particular group of customers. 

According to management, over the last 19-20 years, the company has managed to connect with nearly 3.5 lakh carpenters. From the point the company introduced its digital loyalty programme in 2018, almost 2 lakh carpenters have joined the platform; out of this, about 60 per cent use the loyalty programme. 

The company anticipates this figure reaching 2.5 lakh carpenters within FY27, with an eventual target of getting past 3 lakh carpenters. This particular customer base is at the centre of their distribution system, and management believes that this particular group of customers plays an important part as far as influencers are concerned. To strengthen their moat, Euro plans to invest heavily in trade marketing, with most of the spending targeted at carpenters and dealers.

Moving Beyond Gujarat and Maharashtra

While Gujarat and Maharashtra continue to hold their position as Europe’s top-performing geographies, what emerged from our interactions with the management was that the next growth phase would hinge on geographic expansion. 

Euro operates through its 54 branches in 14 different states, where the company distributes its products directly to the retail level and not through the conventional channel route. Thanks to the direct-to-retail distribution route, Euro has managed to dilute its receivables among more than 12,000 retailers. As part of its FY27 growth strategy, Euro plans to foray into Odisha and Chhattisgarh in May 2026. 

In addition, according to the management, the company could look forward to future opportunities in Chennai, Kerala, and Jammu & Kashmir, implying that its presence in the entire nation remains at its nascent stage. As per the management, states with mature presence would deliver high single-digit growth rates, while the new states would take time and become additional growth drivers.

Branding Like a National Challenger

Euro historically achieved growth through its trade relations and carpenter loyalty instead of branding via media. FY26 was when there was a paradigm shift from that. In FY26, Euro carried out one of the largest-ever brand-building exercises by signing an endorsement deal with Pankaj Tripathi and going live with a national ATL campaign along with JioHotstar around the ICC T20 World Cup. 

It was conveyed that the idea was to boost the top-of-mind awareness and establish Euro as one of the fastest-growing wood adhesive brands in India. Currently, spending on branding is 4% of total sales, which management plans to raise to 6%-7% from FY27 onwards and continue with the higher expenditure for at least three more years to come. 

Out of this total budget allocation, 70%-80% will be used for trade promotions, carpenter engagement, in-store brand building and dealer activations, while the rest of 20%-25% will be spent on general brand building.

OEMs and Product Depth Create New Growth Layers

Apart from retail, Euro is also expanding its OEM business. The management stated that the company started operations in the OEM segment about two years ago, and currently, OEMs account for almost 6% of its revenue. As more and more furniture is being manufactured in the metro and mega cities of India, management believes that OEMs can be a significant adjacency area for growth in the next one to two years. 

Over the next two to three years, management projects OEM contribution to increase to almost 15%, while the retail segment continues to account for 85%. Management also confirmed that the company does not plan to venture into other categories such as stationery adhesives or anything else outside the furniture space. 

The company is fully focused on providing solutions for furniture glueing, which includes waterproof glue, fast-drying glue, higher coverage glue, PVC glue, and OEM glue. Management believes that there are ample opportunities in the wood adhesives category alone for Euro to grow to Rs 1,000 – Rs 1,200 crore in revenues without even venturing into adjacent categories.

Management believes the wood adhesives market alone offers enough opportunity to support a ₹1,000–₹1,200 crore revenue journey before considering adjacent categories. 

Can Euro Truly Challenge the Market Leader?

In one of the most telling remarks from the call, management was clear that Euro has become the second-largest player in its segment despite a “huge gap” vis-à-vis the market leader. Management, however, did not come across as apprehensive. Rather, it kept reiterating that Euro’s products are priced competitively with those of the market leader and have continued to be competitive despite the recent price increases. 

Notwithstanding the significant jump in costs for the raw material vinyl acetate monomer from ₹75–₹80 to ₹160–₹180, the company has passed through 60%-70% of the cost increases. It continues to maintain its long-term gross margin guidance of 23%-25% EBITDA. 

Given its 20% market share in Maharashtra, 30%-35% market share in Gujarat, a 3.5 lakh carpenter ecosystem, 54 branches across 14 states, strong branding, and adequate capacity to generate revenue of ₹600 crore and above, Euro seems to be in the process of transforming itself from a regional adhesive company to a full-fledged national player. Its ability to do this would determine whether Euro will challenge Pidilite Industries’ domination of the Indian wood adhesives market.

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