Berger Paints India (BERGEPAINT) investor relations material

Executive summary

• Achieved double-digit revenue and operating profit growth in Q1 FY27, with standalone PAT up 25.5% and consolidated PAT up 28.6% year-over-year; decorative business led with its highest growth in 12 quarters and nearly 20% operating profit growth.

• Decorative and Automotive segments were primary growth drivers, supported by new product launches, premium interior emulsions, construction chemicals, and network expansion.

• Subsidiaries Bolix and STP saw muted or flat revenue but improved profitability through margin expansion and corrective actions; BJN Nepal and JVs posted strong growth.

• Store footprint expanded to over 1,900, with more than 2,100 painting machines installed during the quarter and over 900 urban stores.

• Despite macro and geopolitical risks, prudent financial controls and demand improvement led to strong results.

Financial highlights

• Standalone revenue rose 12.7% year-over-year to ₹3,226.7 crore; consolidated revenue up 12% to ₹3,583.8 crore; standalone PAT up 25.5% to ₹368.7 crore; consolidated PAT up 28.6% to ₹405 crore.

• Consolidated EBITDA (excluding other income) rose 15% to ₹607.4 crore; standalone EBITDA up 12.6% to ₹562.2 crore.

• Gross margin at 39.3%, slightly lower due to raw material inflation and delayed price increases in industrial segments.

• Cash surplus increased from ₹1,198 crore to ₹1,424 crore as of June FY27.

• Earnings per share (consolidated) for the quarter was ₹3.47, up from ₹2.70 in the prior year.

Outlook and guidance

• Double-digit revenue growth expected to sustain, aided by full impact of price increases, festive demand, and distribution expansion.

• Operating margins projected to remain within 15%-17% range; Q2 margins anticipated to improve year-over-year.

• Volume growth for Q2 projected at 7.5%-8%, with price increases of 7.5%-8.5%.

• Macro environment remains dynamic, with close monitoring of crude oil, currency, and geopolitical factors.

• No downside risk seen for volume growth despite price hikes, supported by network expansion and branding initiatives.