Mumbai, May 12: Berger Paints India Ltd. (CMP: ₹487) reported its quarterly and FY26 results, with revenue slightly below estimates, while operating performance and margins came in ahead of expectations. The company maintained a positive margin trajectory supported by benign raw material costs, improved product mix, and operating leverage.
Performance Highlights
Revenue for the quarter stood at ₹28.7 billion, up 6% year-on-year but 3% below estimates. FY26 revenue came in at ₹118 billion, reflecting a 3% YoY growth. Volume growth for the quarter was strong at 11.8%, the highest since 1QFY23, aided by channel restocking ahead of industry price hikes and strong demand in premium emulsions.
EBITDA for the quarter rose 13% YoY to ₹4.8 billion, coming in 9% above estimates. FY26 EBITDA stood at ₹18.3 billion, marginally lower YoY, with EBITDA margins at 15.4%, within the guided range of 15–17%. Gross margins improved by 110 bps to 42.5% during FY26, supported by lower raw material costs and favorable product mix.
Gross margin for the quarter expanded 148 bps YoY to 44.2%, driven by inventory benefits, improved mix, operating leverage, and withdrawal of TiO2 duty. EBITDA margin stood at 16.8%, above estimates and at the higher end of guidance.
Reported PAT for the quarter rose 28% YoY to ₹3.3 billion, including a one-time expense related to inventory loss reversal. Adjusted recurring PAT stood at ₹2.97 billion, up 14% YoY and ahead of estimates.
Segment Performance
- Decorative paints: Strong double-digit volume growth driven by pre-price hike demand and premium emulsion traction
- Construction chemicals & waterproofing: Continued strong outperformance
- Protective coatings: High single-digit growth on strong base
- Automotive coatings: Double-digit volume growth supported by demand in 2W/3W segment
- Industrial segments (GI, powder coatings): Strong recovery and sequential improvement
Balance Sheet
- Cash & equivalents: ₹12.6 billion (vs ₹8.3 billion in FY25)
- Net cash positive position maintained
- Operating cash flow: ₹15.4 billion (vs ₹12.7 billion in FY25)
- Capex: ₹5 billion (vs ₹4.2 billion in FY25)
Subsidiaries
Subsidiaries delivered mixed performance with strong growth in Poland operations, JV automotive coatings, and Berger Becker JV, while Nepal operations remained subdued due to temporary macro disruptions.
Outlook
The company expects gradual demand recovery across both decorative and industrial segments. Margins are likely to remain supported by staggered price hikes and cost optimization initiatives. However, elevated competition and input cost volatility remain key monitorables.
Growth is expected to be driven by construction chemicals, waterproofing, wood coatings, and upcoming product launches, with a positive outlook for protective coatings supported by government capex.
Key Monitorables
- Raw material price volatility and crude-linked inputs
- Currency fluctuations and supply chain disruptions
- Competitive intensity in decorative paints
- Geopolitical risks impacting input costs