Berger Paints India (BERGEPAINT) Q1 25/26 earnings summary

Executive summary

• Achieved market share above 20% among listed peers, with consistent outperformance versus industry growth rates and mid-single-digit volume growth in Q1 FY26, despite heavy monsoon and competitive pressures.

• Decorative segment, differentiated products, and international operations drove topline and margin resilience; automotive and JVs contributed positively, though UK operations faced margin pressures.

• Launched new products including Kolor Plus, Luxol Metallics, and Tank Kool, expanding product portfolio and retail footprint by over 300 stores and 2,500+ tinting machines.

• EBITDA improved both sequentially and year-over-year; consolidated EBITDA (excluding other income) up 1.1% to Rs. 528.4 crore.

• Net profit declined due to an exceptional loss from a warehouse fire; insurance claim process underway.

Financial highlights

• Standalone revenue grew 2.0% year-over-year to ₹2,862.62 crore; consolidated revenue up 3.6% to ₹3,200.76 crore.

• Standalone PAT declined 3.8% year-over-year to ₹293.76 crore; consolidated PAT down 11.0% to ₹315.04 crore, impacted by a ₹36.81 crore exceptional loss.

• Gross margin improved YoY to 40.1% (from 39.3%), though slightly down sequentially due to adverse mix.

• Standalone operating profit margin rose to 17.4% (vs. 17.2% YoY and 16.6% QoQ); consolidated PBDIT margin at 16.5%.

• Standalone EBITDA (excluding other income) increased 3.3% YoY to Rs. 499.5 crore.

Outlook and guidance

• Expectation of sales recovery post-monsoon, with volume momentum likely to pick up as rains abate and government infrastructure spending in H2 FY26 could support growth.

• Margin guidance maintained in the 15%-17% range, with current performance at the higher end.

• Gradual improvement in demand indicators, especially in urban markets; rural sentiment may improve with easing inflation and supportive policies.

• Focus on innovation, brand differentiation, and market share expansion to address short-term challenges.