Berger Paints India (BERGEPAINT) Q3 25/26 earnings summary

Executive summary

• Achieved high single-digit volume growth in Q3 FY26, but value growth was muted at 0.4% due to mix shift and price corrections in economy emulsions; extended monsoon impacted demand, especially in October.

• Gross margin expanded year-over-year and quarter-over-quarter, reaching 41.2%, the highest in 15 quarters except Q4 last year.

• EBITDA margin stood at 16.1%, within the guided range of 15%-17%.

• Dealer network expanded with 2,500+ new Color Bank machines and over 1,800 stores nationwide; strong new product launches in premium emulsions, metallic paints, and construction chemicals.

• Decorative and auto segments performed well, with robust growth in construction chemicals, waterproofing, and wood coatings.

Financial highlights

• Standalone Q3 FY26 revenue grew 0.4% year-over-year to ₹2,595 crore; PAT declined 2.5% to ₹298.4 crore.

• Consolidated Q3 FY26 revenue up 0.3% to ₹2,984 crore; PAT down 8.3% to ₹271.3 crore.

• Standalone Q3: 8.5% volume growth, gross margin up 4%, EBITDA margin flattish at -0.1%.

• YTD Dec FY26 consolidated revenue up 1.9% year-over-year; PAT down 13.8%.

• Net cash position improved from INR 689 crore (Mar 2025) to INR 918 crore (Dec 2026).

Outlook and guidance

• Demand conditions are gradually improving month-over-month since October, with progressive sequential uptick in Q3.

• Focus remains on revenue growth and sustaining gross margins; operating margins expected within guided range.

• Double-digit volume growth expected next year, with value growth lagging by 4%-5%.

• Continued investments in branding, distribution, and urban initiatives planned.

• Near-term margin risks persist due to forex volatility, geopolitical uncertainty, and evolving tariffs.