Synopsis:
Berger Paints posted healthy sequential growth in revenue and profit for Q1FY26, but YoY net profit declined due to an exceptional loss from a warehouse fire. Strong traction in key focus segments helped offset monsoon-related volume headwinds.
A decorative paints and coatings stock witnessed selling pressure after the company reported a decline in net profit on a year-on-year basis for the June quarter, impacted by an exceptional loss due to a warehouse fire. However, sequential growth in revenue and profitability, along with strong traction in key segments, offered some support to investor sentiment.
Berger Paints India Ltd, with a market capitalization of Rs. 65,406.70 crore, opened at Rs. 570 compared to the previous close of Rs. 571.70. The stock touched an intraday low of Rs. 556.60, registering a decline of 2.64 percent during the session. LIC holds a 4.30 percent stake in the company.
What’s the News?
Quarter-on-quarter, revenue from operations grew 18.4 percent from Rs. 2,704 crore in Q4FY25 to Rs. 3,201 crore in Q1FY26. Operating profit rose 23.4 percent from Rs. 428 crore to Rs. 528 crore, while profit before tax increased 20.8 percent from Rs. 350 crore to Rs. 423 crore. Net profit rose 19.8 percent from Rs. 263 crore to Rs. 315 crore. Operating margin also expanded from 16 percent to 17 percent sequentially. The quarter, however, included an exceptional loss of Rs. 36.81 crore, arising from a warehouse fire incident in Barasat, West Bengal, which impacted inventory and certain fixed assets.
Year-on-year, revenue from operations rose 3.6 percent from Rs. 3,091 crore to Rs. 3,201 crore. Operating profit rose 1.1 percent from Rs. 522 crore to Rs. 528 crore. However, profit before tax declined 9.2 percent from Rs. 466 crore to Rs. 423 crore, and net profit fell 11 percent from Rs. 354 crore to Rs. 315 crore. The YoY results were also affected by the same exceptional loss. The company is in the process of filing an insurance claim for the damage caused by the fire.
Management Commentary
On Demand Trends & Growth
“This quarter saw sequential improvements in demand with month-on-month improvements being observed. The early onset of the monsoon played spoilsport this quarter. We were still able to deliver value growth higher than the listed industry players and continued to improve our market share,” said Abhijit Roy, Managing Director & CEO of Berger Paints India Limited.
On Segmental Performance
“We continued to register robust growth in our key focus segments of waterproofing, construction chemicals, and wood coatings. The industrial segment performance was led by the Automotive division with healthy performance on both revenue growth and profitability.”
On Outlook
“The gradual and sequential improvement in domestic demand indicators and improving momentum in key markets are positive signs, which were interrupted by the inclement weather but will recover in short order.”
Operational Highlights
Berger Paints continued to gain market share, maintaining a share above 20 percent among listed players. The quarter saw mid single-digit volume growth, though it was moderated by a heavier than expected monsoon in May and June. The decorative segment delivered mid single digit growth with a narrowed volume-value gap, supported by an improved product mix and reduced impact from earlier price corrections.
The Automotive segment outperformed overall company growth in both volume and value terms. The company also saw strong revenue growth in international operations, with robust traction in products like Roof Kool & Seal, HomeShield, and its wood coatings portfolio. While Protective and Automotive Coatings maintained positive momentum, performance in GI and Powder Coatings remained subdued. Performance at Bolix in the UK was impacted by margin pressures, affecting PBDIT.
About the Company
Berger Paints India Ltd is one of the country’s leading paint, coatings, and waterproofing companies and is ranked among the top 15 global coatings players. With a presence across India, Nepal, and Europe through its subsidiaries and joint ventures, the company is known for innovation-led growth.
It pioneered tinting systems in India, introduced automated painting tools under “Express Painting,” and leads in the protective and industrial coatings space. Berger’s overseas subsidiaries, including Bolix in Poland and step-down arms in the UK, France, and Ukraine, are also prominent players in the ETICS segment, contributing significantly to energy-saving initiatives across Europe.
Written by Manan Gangwar
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