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Berger Paints India (BERGEPAINT) investor relations material
Berger Paints India Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 FY26 saw high single-digit volume growth (8.8%) but muted value growth (1.1%) due to extended monsoon, impacting premium product sales and causing downtrading toward economy emulsions.
Sales momentum improved late in September as weather stabilized, with expectations for stronger performance in Q3 and Q4.
Construction Chemicals and Wood Coatings segments registered robust growth, while Decorative business saw muted value growth.
Consolidated revenue for Q2 FY26 rose 1.9% year-over-year to ₹2,827.5 crore; standalone revenue increased 1.1% to ₹2,458.5 crore.
Consolidated net profit for Q2 FY26 declined 23.5% to ₹206.4 crore; standalone net profit fell 23.0% to ₹176.3 crore.
Financial highlights
Standalone total income from operations grew 1.1% year-over-year in Q2; operating profit declined by 18.8%.
Consolidated EBITDA for Q2 FY26 was ₹352.3 crore, down 18.9% year-over-year; standalone EBITDA was ₹311.2 crore, down 18.8%.
Gross margin dipped by 0.8% to 39.6% due to adverse product mix; operating margin shrank to 12.7%.
PAT for Q2 FY26 declined 23% year-over-year; H1 FY26 consolidated revenue up 2.8%, PAT down 16.4%.
Net cash stood at INR 636 crore at September-end after a dividend payout of INR 443 crore.
Outlook and guidance
Expectation of double-digit volume growth in November and December, with Q3 value growth in mid-single digits and higher volume growth.
Margin guidance maintained at 15%-17% for Q3, with Q4 expected toward the higher end.
Gross margin expected to improve by 1.5% in H2 due to benign raw material prices.
Demand revival anticipated post-Diwali, supported by pent-up demand and improved weather.
Continued investments in brand, manpower, and retail network to capture demand.
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