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

Executive summary

• Achieved high single-digit (8.5%) 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 into October dampened demand, but sequential improvement was seen in November and December.

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

• Consolidated revenue for Q3 FY26 was Rs. 2,984 crore, up 0.3% YoY; standalone revenue was Rs. 2,595 crore, up 0.4% YoY.

• Consolidated net profit for Q3 FY26 declined 8.3% YoY to Rs. 271.3 crore; standalone net profit declined 2.5% to Rs. 298.4 crore.

Financial highlights

• Standalone Q3: 8.5% volume growth, 0.4% value growth, gross margin at 41.2% (highest in 15 quarters except Q4 last year), EBITDA margin at 16.1%.

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

• Gross margin expanded to 41.2% in Q3 FY26 from 39.8% a year ago; consolidated gross margin at 43.1%.

• Net cash position improved to Rs. 918 crore as of Dec 2026 from Rs. 689 crore in Mar 2025.

• EBITDA margin remained within guidance range, though impacted by negative scale effect and continued brand investments.

Outlook and guidance

• Demand conditions are gradually improving month-over-month; focus remains on revenue growth and sustaining gross margins.

• Operating/PBDIT margins expected to remain within 15%-17% guidance.

• 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.