Berger Paints Q4 FY26: Profit up 28%, stock jumps 9%

Stock jumps after results

Berger Paints India shares rallied sharply on Wednesday, May 13, after the company reported a strong March-quarter performance. On the BSE, the stock rose as much as 9% to an intraday high of ₹533. On the NSE, it climbed as much as 9.27% to ₹533.35.

By 10:34 AM, Berger Paints was trading at ₹517.10, up about 6% from the previous close. The broader market tone was mildly positive, with the BSE Sensex up 140 points, or 0.19%, at 74,699.

Q4 FY26 profit rises on volumes and margins

Berger Paints reported a more than 27% year-on-year rise in consolidated net profit for Q4 FY26. Net profit for the quarter stood at ₹335.3 crore, supported by strong volume growth and improved gross margins.

Consolidated revenue from operations increased 6.1% year-on-year to ₹2,868 crore in the March quarter. Operating profitability also improved, with EBITDA rising 12.6% year-on-year to ₹481.7 crore.

Demand trend and volume growth

Managing Director Abhijit Roy said the gradual improvement in demand seen in the previous quarter continued through Q4. That demand environment helped the company deliver volume growth of 11.8%.

Roy attributed the quarter’s performance to a better product mix and softer raw material prices. The company’s commentary, along with the quarter’s margin profile, was a key driver of the stock’s sharp reaction.

Gross margin hits a three-year high

Gross margin for the quarter stood at 42.3%, which the company said was the highest level seen in the last three financial years. Berger Paints said margins improved both sequentially and year-on-year.

It pointed to three specific factors behind the improvement: favourable mix enrichment, a lower impact from price cuts in the economy segment, and partial benefits from the withdrawal of anti-dumping duty on titanium dioxide.

Full-year FY26: profit falls despite revenue growth

While the March quarter was strong, the full-year picture was softer on profit. For FY26, Berger Paints reported consolidated net profit of ₹1,128.8 crore, down 4.6% from the previous year.

Annual revenue rose 2.9% to ₹11,880 crore. The company’s FY26 net profit decline was also linked in reports to factors such as new labour codes and a warehouse fire, despite the increase in full-year revenue.

Risks management is watching

Berger Paints said several external variables remain important to monitor. These include developments in West Asia, volatility in crude-linked derivatives, rupee depreciation, and supply-side disruptions.

The company flagged these issues because of the inflationary pressures they could create. This is notable for a paint manufacturer where input costs are sensitive to crude-linked chemicals and global supply conditions.

Pricing actions, construction chemicals, and launches

Despite global uncertainties, Berger Paints said it expects continued growth supported by construction chemicals and new product launches. The company also indicated that price adjustments are expected to support profitability.

A separate report cited that due to rising input costs, the company had to implement price hikes of over 11% from the end of March. Any such pricing actions matter because the quarter’s margin performance was also supported by softer raw material prices.

Dividend recommendation for FY26

Berger Paints’ board recommended a final dividend of ₹4 per equity share for FY26, subject to shareholder approval. Dividend decisions are typically watched closely by investors, especially when full-year profit is lower even as quarterly performance improves.

What brokerages said after the results

Brokerage commentary added to investor sentiment after the results. ICICI Securities retained its ‘Add’ rating, citing the company’s potential to gain market share as the paint industry recovers in FY27.

ICICI Securities revised its DCF-based target price to ₹550 from ₹530 earlier, implying a target P/E of 40x on FY28E EPS. The brokerage said this target price indicated an upside of nearly 3.23% from the current market price cited in the report.

Equirus Securities retained its ‘Long’ rating, citing steady volume growth with market share gains and a stable margin profile. Equirus cut FY27 and FY28 EPS estimates by 5% and 3%, respectively, to factor in higher raw material costs, and set a June 2027 target price of ₹577 (versus ₹578 earlier), at 46x TTM EPS of ₹12.6.

Key numbers at a glance

Why this quarter matters for investors

The Q4 FY26 results brought together three elements that equity markets typically reward: double-digit volume growth, higher margins, and a clear explanation of the drivers behind those improvements. Gross margin at 42.3%, described as a three-year high, also helped reinforce confidence in the company’s near-term operating performance.

At the same time, Berger Paints has been explicit about macro risks that could reintroduce cost pressure, such as crude-linked volatility, rupee depreciation, and supply disruptions. The balance between sustaining volume growth and protecting margins, especially when price adjustments are being discussed, is likely to remain a key part of how investors track the stock after this sharp post-results move.

Conclusion

Berger Paints’ shares rose up to 9% after Q4 FY26 profit increased to ₹335.3 crore on strong volumes, improved mix, and a three-year-high gross margin. Management expects growth support from construction chemicals and new launches, while monitoring crude-linked volatility, currency moves, and supply risks, with a final dividend of ₹4 per share proposed for FY26.