Berger Paints India (BERGEPAINT) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue grew 11.9% standalone and 13.2% consolidated; consolidated PBDIT and PAT each rose 5.2%, while standalone PBDIT and PAT declined 4.4% and 7.3%.

• H1 revenue grew 12.3% standalone and 12.5% consolidated; PAT rose 13.2% standalone and 19.3% consolidated.

• Priorities include margin recovery, urban-market execution, continued brand and retail investment, and disciplined capacity expansion.

Financial highlights

• Q2 standalone revenue was ₹2,750.06 crore (+11.9%); PBDIT was ₹297.54 crore (-4.4%) and PAT ₹163.31 crore (-7.3%) YoY.

• Q2 consolidated revenue was ₹3,200.37 crore (+13.2%); PBDIT was ₹370.67 crore (+5.2%) and PAT ₹217.10 crore (+5.2%) YoY.

• H1 standalone revenue was ₹5,976.74 crore (+12.3%), PBDIT ₹859.76 crore (+6.1%) and PAT ₹531.99 crore (+13.2%).

• H1 consolidated revenue was ₹6,784.12 crore (+12.5%), PBDIT ₹978.11 crore (+11.1%) and PAT ₹622.11 crore (+19.3%).

• Excluding ₹22 crore of Rang Bana Rahe campaign investment, management indicated Q2 PBDIT growth would have been ~3%.

Outlook and guidance

• Management aims to restore EBITDA margin to the 15%-17% guided band, targeting a level close to it in Q3 and potentially Q4 through pricing, cost savings, efficiency and operating-cost discipline.

• Industrial price actions were expected to recover nearly 90% of the intended increase by end-November and the balance by December, conditional on raw-material prices remaining lower.

• October recorded the strongest sales growth in 25-30 months; management expects robust Q3 growth as festive demand shifts into the quarter.

• Q3 priorities include automotive and industrial coatings, waterproofing, construction chemicals and wood coatings, alongside brand investment and retail activation.

• Urban-market expansion remains an experiment through March, with acceleration planned from April after reviewing results and refining execution.