Berger Paints Q4FY26 Results: PAT up 27.5% YoY

Q4FY26 numbers at a glance

Berger Paints reported a stronger March-quarter profit, even as commentary across the year pointed to uneven demand and a tight competitive environment. Consolidated profit after tax (PAT) for Q4FY26 rose 27.5% year-on-year (YoY) to ₹335.25 crore, compared with ₹262.91 crore in Q4FY25. Total income from operations increased 6.1% YoY to ₹2,868.03 crore from ₹2,704.03 crore.

What stood out in revenue versus demand

Alongside the Q4 print, the company’s commentary through FY26 repeatedly highlighted a gap between volumes and value growth, shaped by product mix and pricing actions. In one management update, Berger Paints pointed to 8.5% volume growth while value growth remained muted at 0.4%, with the gap attributed to mix shift, a higher share of economy emulsions, textures and tile adhesives, and earlier price corrections in FY25 in the economy emulsion segment. The company also flagged that extended monsoon spillover into October affected demand momentum year-on-year and quarter-on-quarter.

Margins, mix, and the guided operating band

Management commentary indicated gross margin expansion supported by product mix improvements and stable raw material prices in certain periods. It also said PBDIT margin was within the guided range of 15% to 17% on a standalone basis. In a separate quarterly commentary, gross margins were described as stable in the 39% to 41% band, with one quarter reported at 40.1%.

Raw material inflation and pricing actions

A brokerage note cited rising raw material (RM) costs linked to the West Asia conflict. According to the brokerage, Berger Paints’ blended RM basket (around 60% of sales) rose about 20%. To counter this, the company took cumulative retail price hikes of 11% to 12%, with the brokerage stating that cost inflation had been fully passed on so far, helping limit downside risk to margins.

Broker view: target price trimmed, EPS cuts for FY27 and FY28

In the same research note, analysts argued that smaller and unorganised players could be hit harder by steep commodity inflation and the potential loss of shelf space in trade. The analysts wrote that a reduction in competitive intensity, operating leverage, and cost-saving initiatives could lift Ebitda margin in FY27 over the FY26 base of 15.4%.

But they also flagged risks. The analysts cautioned that a steep correction in commodity prices and lower-than-expected competitive pressure could act as key risks for the company. The brokerage cut FY27 and FY28 EPS estimates by 5% and 3%, respectively, to factor in higher raw material costs. It set a June 2027 target price of ₹577, slightly lower than ₹578 earlier, valuing the stock at 46x TTM EPS of ₹12.6.

FY26 demand backdrop: slow start, gradual improvement

On outlook, Berger Paints said demand conditions continued to be closely monitored, with gradual recovery expected across both decorative and industrial businesses. In its December 2025 business outlook commentary, management described a month-on-month improvement: October was negative, November slightly positive, December more positive, and January slightly more positive than December. It said the focus remained on revenue growth with sustained gross margins as a key objective, while operating margins were expected to stay within the guided range.

The company also flagged that competitive intensity was expected to remain elevated. It said continued investments in branding, distribution, expansion and urban initiatives were priorities to capture potential demand improvement. Separately, it flagged geopolitical uncertainty, forex volatility and evolving tariff dynamics as factors that could add near- to medium-term volatility.

Recent quarter context: Q2FY26 and Q3FY26 profitability pressure

For Q2FY26 (September quarter), Berger Paints reported consolidated revenue from operations of ₹2,827.5 crore, up 1.9% YoY from ₹2,774.6 crore. EBITDA (excluding other income) fell 18.9% YoY to ₹352.3 crore from ₹434.2 crore, while net profit declined 23.5% to ₹206.4 crore from ₹269.9 crore. On a standalone basis in Q2FY26, revenue rose 1.1% YoY to ₹2,458.5 crore, EBITDA declined 18.8% to ₹311.2 crore, and net profit fell 23.0% to ₹176.3 crore.

In Q3FY26 (December quarter), the company reported an 8.3% YoY decline in consolidated net profit to ₹271.35 crore. The update cited an exceptional item (net loss) of ₹53.31 crore, mainly due to the implementation of new Labour Codes. Profit before exceptional items and tax was reported at ₹405.54 crore, up 2.82%.

Cash position and overseas/JV commentary

In one update, management said the consolidated net cash position improved from about ₹689 crore in March 2025 to ₹918 crore in December 2026. It also referenced varied performance across units, noting that one overseas business saw strong topline and operating profit growth partly aided by P&L appreciation, while Berger Jenson Nepal (BJN Nepal) saw muted revenue and profitability amid political disruption, with stabilisation underway.

Key data table

What investors may track next

The near-term narrative remains anchored around three measurable factors highlighted in company and broker commentary: the pace of demand normalisation after weather-related disruption, the trajectory of raw material costs, and how pricing actions sustain margins within guided ranges. Investors are also likely to monitor whether competitive intensity eases, as discussed by analysts, and how ongoing investments in branding and distribution translate into revenue growth. The next set of updates should also clarify how geopolitical and forex volatility are feeding into input costs and pricing decisions, which management has flagged as key variables.