Berger Paints Q2 Revenue Gains 11.9% as Standalone PBDIT Falls

Berger Paints India Limited reported standalone total income from operations growth of 11.9% to Rs 27.50 crore in Q2 FY27, while profit before depreciation, interest and tax fell 4.4% to Rs 2.98 crore as material cost rose to 63.4% of income from 60.4% a year earlier.

How did Berger Paints’ Q2 FY27 operating performance change?

Berger Paints increased standalone income in the quarter ended 30 September 2026, but its operating profit declined. Total income from operations rose from Rs 24.58 crore in Q2 FY26 to Rs 27.50 crore in Q2 FY27, while standalone volume grew 3.0% and value grew 11.9%. The difference indicates that value growth exceeded volume growth during the quarter.

Profit before depreciation, interest and tax, or PBDIT, excluding other income, declined to Rs 2.98 crore from Rs 3.11 crore. The PBDIT margin fell 1.9 percentage points to 10.8% from 12.7%. Profit from operation before interest declined 10.9% to Rs 2.01 crore, while profit before interest and tax, or PBIT, declined 6.8% to Rs 2.32 crore.

Berger Paints reported standalone profit after tax, or PAT, of Rs 1.63 crore, down 7.3% from Rs 1.76 crore in Q2 FY26. Profit before tax declined 7.1% to Rs 2.18 crore, although other income rose to Rs 31.13 lakh from Rs 23.47 lakh. Finance cost was nearly unchanged at Rs 13.70 lakh, compared with Rs 13.81 lakh.

What caused Berger Paints’ Q2 FY27 margin compression?

Berger Paints attributed Q2 FY27 gross-margin pressure to double-digit raw-material inflation, liquidation of high-cost inventory and delayed price increases in the Industrial segment. Material cost increased 17.2% year on year to Rs 17.42 crore, faster than the 11.9% rise in operations income. Its share of income consequently increased by 3.0 percentage points to 63.4% from 60.4%.

The presentation said the pressure intensified during Q2 FY27. Employee cost was broadly flat at Rs 1.83 crore against Rs 1.83 crore a year earlier, reducing its share of income to 6.7% from 7.4%. Other expenses rose to Rs 5.27 crore from Rs 4.79 crore, but fell as a share of income to 19.2% from 19.5%.

Berger Paints also disclosed an additional investment of about Rs 22 crore in the Rang Bana Rahe campaign during the quarter. Management said that spending affected quarterly margins and that PBDIT growth would have been about 3% excluding the campaign investment. The presentation identifies this advertising and promotion expenditure as an additional pressure alongside raw-material inflation and inventory costs.

How did Berger Paints’ H1 FY27 results compare with Q2?

Berger Paints delivered revenue and PBDIT growth in H1 FY27 despite the Q2 decline in operating profit. Standalone total income from operations for the half year ended 30 September 2026 rose 12.3% to Rs 59.77 crore from Rs 53.21 crore. PBDIT excluding other income increased 6.1% to Rs 8.60 crore, although its margin declined to 14.4% from 15.2%.

The half-year material-cost movement was less pronounced than in Q2. Material cost was 61.9% of H1 FY27 operations income, up 1.7 percentage points from 60.2% in H1 FY26, compared with the 3.0-percentage-point increase in Q2 alone. Employee cost declined to 6.1% of income from 6.4%, while other expenses declined to 17.6% from 18.2%.

Berger Paints’ H1 FY27 PAT increased 13.2% to Rs 5.32 crore from Rs 4.70 crore. The year-earlier period included an exceptional item of Rs 36.81 lakh, while H1 FY27 had no exceptional item. On a pre-exceptional-item basis, profit before tax increased 7.6% to Rs 7.18 crore from Rs 6.68 crore, compared with the reported 13.9% increase in profit before tax.

What did Berger Paints report about Decorative and Industrial demand?

Berger Paints reported about 10% value growth in Decorative during Q2 FY27, driven by price increases, while it described Industrial volume and value growth as robust across business lines. The presentation also said Industrial gross margin was lower year on year, consistent with the delayed Industrial price increases cited in the overall margin discussion.

Decorative volume growth moderated because a later Diwali shifted festive demand into Q3 and because of a conscious mix improvement, according to the presentation. Price-sensitive categories including Putty, Textures and Enamel declined, while extended rain affected eastern markets. Differentiated products outperformed in the quarter.

Berger Paints identified RKNS and DampShield as growth drivers in its Home Solutions segment and said Wood Coatings delivered strong double-digit value growth. The company said the Rang Bana Rahe campaign was intended to strengthen brand visibility and consumer engagement, with the additional Rs 22 crore investment included in the Q2 FY27 margin effect.

How is Berger Paints expanding its distribution capability?

Berger Paints reported a retail store network of more than 2,000 stores as of H1 FY27. The disclosure provides the company’s reported measure of physical retail reach at 30 September 2026, alongside the Decorative business activity and campaign spending reported for Q2 FY27.

Berger Paints also reported more than 4,800 tinting machines as of H1 FY27, including more than 2,700 during Q2. The presentation does not state whether the Q2 figure represents additions, installations or another measurement basis. It therefore establishes the reported tinting-machine scale but not a comparable expansion rate.

At the consolidated level, Berger Paints reported revenue growth of 13.2% in Q2 FY27 and 12.5% in H1 FY27, compared with standalone growth of 11.9% and 12.3%, respectively. Consolidated PBDIT grew 5.2%, which the company attributed to strong performances by subsidiaries. The company also said it remained cash-positive on a consolidated basis without disclosing a cash balance.

Conclusion

Berger Paints’ Q2 FY27 results show that standalone income growth did not translate into higher quarterly operating profit: operations income rose 11.9%, while PBDIT declined 4.4% and PAT fell 7.3%. Material cost increased to 63.4% of income from 60.4%, and the company also cited high-cost inventory, delayed Industrial price increases and about Rs 22 crore of campaign investment.

The next reported period to watch is Q3 FY27, because Berger Paints said the later Diwali shifted festive demand into that quarter and margin pressure intensified during Q2. Management’s disclosed pricing actions in Industrial, material-cost trends and the sales contribution from its more than 2,000 stores and more than 4,800 tinting machines will indicate how the company executes against those conditions.