Berger Paints India (BERGEPAINT) Q3 24/25 earnings summary

Executive summary

• Achieved high single-digit volume growth in the decorative segment for Q3 FY25, with sequential uptick in both volume and value growth; market share now exceeds 20%.

• Protective coatings and construction chemicals segments delivered strong double-digit growth, aided by government infrastructure push; continued network expansion with 2,000+ new retail touchpoints and 1,800 ColorBank machines installed.

• Net cash position improved from INR 242 crores in September 2024 to INR 377 crores in December 2024.

• Operating margin improved sequentially, and a new solar-powered corporate office was inaugurated in February 2025, marking the company's 100th year.

• International operations in Poland and Nepal delivered steady topline growth, with Nepal seeing a robust turnaround.

Financial highlights

• Q3 FY25 standalone volume growth was 7.4% year-over-year; YTD volume growth at 7.7%.

• Standalone Q3 FY25 revenue grew 0.4% year-over-year to ₹2,584.76 crore; PAT up 16.3% to ₹306.08 crore.

• Consolidated Q3 FY25 revenue up 3.2% year-over-year to ₹2,975.06 crore; PAT down 1.4% to ₹295.97 crore.

• Gross margin for Q3 at 39.8%-40.3%, stable quarter-over-quarter; EBITDA margin at 15.8%-16.2%, within guided range.

• Value growth for Q3 was 0.4%, and 0.9% YTD; volume-value gap attributed to earlier price decreases and higher sales of low-value, high-volume products.

Outlook and guidance

• Management remains optimistic on sequential improvement in decorative business, expecting improved consumer sentiment and favorable budget impact.

• Volume-value gap expected to narrow as price decrease impact fades; value growth to remain in mid-single digits.

• Margin guidance maintained at 15%-17% despite competitive intensity and currency fluctuations.

• Protective business outlook positive due to continued government infrastructure spending; automotive and industrial segments expected to improve.

• Geopolitical risks and currency depreciation remain key uncertainties.