Berger Paints sees strong demand, monsoon driving growth in FY27
Berger Paints India Ltd has started 2026-27 on a strong footing and expects improving domestic demand, a favourable monsoon and the full impact of recent
Berger Paints India Ltd has started 2026-27 on a strong footing and expects improving domestic demand, a favourable monsoon and the full impact of recent price hikes to support growth through the rest of the fiscal, even as competition remains intense and raw material prices remain volatile. Berger Paints' consolidated net profit attributable to owners rose 29% year-on-year to ₹404.34 crore for the quarter ended 30 June, from ₹314.63 crore a year ago, according to the company's stock exchange filing. The figure beat the Bloomberg consensus estimate of ₹390.24 crore, based on 15 analyst estimates. Revenue from operations rose 12% to ₹3,583.75 crore, also ahead of the Bloomberg consensus estimate of ₹3,606.4 crore based on a 16-analyst estimate. Also Read | Asian Paints gets a fresh coat of hope in Q1, but margin worries linger Strong outlook The company expects double-digit revenue growth to continue through the year as the full benefit of price increases flows through from the September quarter. Berger also expects festive demand, distribution expansion and a well-progressing monsoon to improve consumer sentiment, particularly in rural markets. Berger Paints realized an effective price increase of about 5% in the June quarter, with the benefit expected to rise to 7.5%-8% in the September quarter as staggered price hikes, including increases of up to 12%-13% on certain products, fully flow through, said managing director and chief executive Abhijit Roy during the company's post-earnings conference call.
“The second quarter revenue growth might be slightly ahead of the first quarter revenue growth. The volume growth will be somewhere around similar levels as quarter one, slightly below maybe, around 7.5% to 8%,” Roy told analysts on Wednesday. In Q1, the company reported 8.4% volume growth. Earnings before interest, tax, depreciation and amortization (Ebitda), excluding other income, climbed 15% to ₹607.4 crore. Roy said demand momentum that emerged in the previous quarter carried into the first quarter, helping the company deliver 12.7% value growth despite a volatile operating environment. "Our performance this quarter was driven by strong growth in both the automotive and decorative segments," Roy said. The company said the West Asia war disrupted crude supplies and pushed up prices of crude-based raw materials, resulting in some pressure on gross margins. However, tighter cost controls and operational efficiencies helped it maintain operating margins above its guided range. Also Read | Indigo Paints to loosen grip on margins for scale “It was a positive start to the new year in spite of the unsettled environment resulting from the conflict in West Asia, which led to disruptions in the availability and prices of crude and impacted crude-based raw materials,” Roy said in a statement.
The BriefWire