Berger Paints’ Q1 performance was supported by demand in automotive and decorative segments, while higher raw material costs and intensifying competition weighed on the operating environment
Berger Paints India reported a 20.6 per cent year-on-year rise in consolidated net profit to Rs 404 crore for the quarter ended 30 June, supported by demand in its automotive and decorative segments. The company had posted a consolidated net profit of Rs 335 crore in the corresponding quarter of the previous financial year.
Revenue from operations increased to Rs 3,584 crore from Rs 2,868 crore a year earlier. Based on the reported figures, revenue grew about 25 per cent year-on-year during the quarter, crossing the Rs 3,500-crore mark.
Operating performance also improved, with Ebitda rising 26.1 per cent to Rs 607.5 crore from Rs 481.6 crore in the year-ago period. Ebitda margin expanded to 17 per cent from 16.8 per cent in the corresponding quarter last year.
The performance comes amid heightened competition in India’s paint market following the aggressive expansion of Grasim Industries’ Birla Opus brand. The entry has intensified competition on pricing and increased marketing expenditure across the sector.
Berger Paints has been strengthening its distribution network and focusing on premium categories, including waterproofing products and luxury emulsions, as it seeks to compete in the increasingly crowded market. The company has also implemented price increases during the period.
Raw material costs remained a pressure point, rising about 29 per cent during the quarter. Paint manufacturers have been dealing with volatility in crude oil-linked inputs, which account for a significant portion of paint manufacturing costs, although some raw material prices have moderated recently.
Berger Paints had also reported a one-time gain of Rs 37 crore in the corresponding quarter of FY26. Despite the higher base created by this exceptional gain, the company recorded a year-on-year increase in consolidated net profit in the quarter under review.
