Berger Paints India (BERGEPAINT) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 delivered strong performance with 7.4% volume growth, 4.4% revenue growth, and operating profit up 19.8% YoY, with market share exceeding 20%.

• Decorative segment led growth with high single-digit volume gains, while construction chemicals, waterproofing, and wood coatings outperformed.

• International subsidiaries like Bolix and BJN Nepal rebounded strongly, and industrial business delivered resilient Q4 performance.

• Board approved audited results for Q4 and FY25, with unmodified auditor opinions and a Rs 3.80 per share dividend recommended.

• Retail footprint expanded to over 1,000 stores, with significant additions of tinting/printing machines and focus on underserved geographies.

Financial highlights

• Q4 consolidated revenue: Rs 2,704.0 crore (+7.3% YoY); standalone: Rs 2,347.5 crore (+4.4% YoY); Q4 consolidated net profit: Rs 262.9 crore (+18.1% YoY); standalone: Rs 236.9 crore (+30.5% YoY).

• FY25 consolidated revenue: Rs 11,544.7 crore (+3.1% YoY); standalone: Rs 10,169.2 crore (+1.7% YoY); consolidated net profit: Rs 1,182.8 crore (+1.1% YoY); standalone: Rs 1,077.5 crore (+6.2% YoY).

• Q4 gross margin reached 41.2%, a 12-quarter high, aided by product mix and lower raw material costs.

• Q4 operating margin: 16.6% (up from 14.5% YoY); FY25 operating margin: 13.3%.

• Net cash position improved to Rs 688 crore, with zero gross debt at quarter end.

Outlook and guidance

• Decorative segment expected to benefit from urban demand rebound, higher disposable incomes, and easing inflation.

• Rural growth to sustain, aided by above-average monsoon forecasts.

• Margins expected to remain in the 15%-17% band, with sequential revenue growth improvement through FY26.

• Value growth to improve as price decrease impact wanes; protective coatings to benefit from government capex.

• Geopolitical events, trade tensions, and currency volatility remain key risks.