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%-29% year-over-year.

• Decorative segment delivered its highest growth in 12 quarters, with strong contributions from premium interior emulsions, construction chemicals, and waterproofing.

• Automotive segment also drove growth, benefiting from GST cuts and lower financing costs.

• Store footprint expanded to over 1,900 stores, with more than 2,100 tinting machines installed in the quarter.

• Despite crude price volatility and geopolitical risks, demand improvement and prudent financial controls supported 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 grew 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; consolidated PBDIT margin expanded by 40 bps year-over-year.

• Gross margin moderated to 39.3% due to raw material inflation and delayed price increases in industrial segments.

• Cash surplus increased to ₹1,424 crore as of June FY27, up from ₹1,198 crore in March FY26.

Outlook and guidance

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

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

• Volume growth for Q2 expected 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.

• CapEx for FY27 projected at INR 600-800 crore, mainly for new factories.