Berger Paints India Ltd, India’s second-largest paintmaker, expects demand to soften as paintmakers hike prices to offset a rise in input costs due to the West Asia war.
“Inflation will be on the higher side that might soften demand a little bit,” chief executive officer and managing director Abhijit Roy said during a post-earnings interaction with analysts.
Berger Paints has undertaken three price hikes since the start of April, with a fourth expected on 15 May, Roy said. The company expects these staggered price increases to support margins and offset rising raw material costs.
Amit Purohit, senior vice president of Elara Securities, said, “Berger Paints posted high-single-digit volume growth in FY26, but rising inflation is now emerging as a key risk to demand and is being closely watched by the company. While it has ended the year with muted growth, FY27 is likely to be better than FY26.”
The Kolkata-based paintmaker is also recalibrating its media strategy to improve brand visibility. According to Roy, Berger Paints India had earlier maintained a lower presence in sports advertising than its larger rival Asian Paints and newer entrants, focusing more on news and general entertainment channels.
“We have reduced the spending there and increased our spending on sports this year. So you’ll get to see much more visibility of our brand on sports channels as well,” Roy said.
Berger Paints said competitive intensity in the industry remains high, but indicated that the aggression of new entrant Birla Opus has moderated as the company focuses on improving profitability. Roy said Birla Opus has raised dealer prices, narrowed discounts versus incumbents, and reduced painter incentive schemes, signalling a more “responsible” industry approach. He said it is “evident from the current actions that they are trying to correct the situations and make operations profitable”.
The company said it is closely monitoring disturbances linked to the West Asia conflict such as volatility in crude-based derivatives, rupee depreciation, supply-side disruptions and potential inflationary pressures as well.
Profit dips
Berger Paints India’s FY26 profit fell short of analyst estimates as a prolonged monsoon dampened demand for premium products and weighed on volumes, while aggressive competition squeezed pricing power. FY26 net profit attributable to the owners fell about 4.5% to ₹1,126.87 crore compared to FY25, according to the company’s exchange filings, short of the ₹1,133 crore estimate of 25 analysts polled by Bloomberg.
Revenue from operations rose by 2.9% to ₹11,880.20 in FY26, while earnings before interest, tax, depreciation and amortisation (Ebitda) fell 1.2% to ₹1833.23 crore.
In Q4FY26, revenue from operations rose 6.1% to ₹2,868.03 crore from ₹2,704.03 crore in Q4FY25. Net income rose 27.7% to ₹334.77 crore in Q4FY26 from ₹262.05 crore in Q4FY26, aided by a one-time gain from an insurance claim.
“The company ended the year with muted revenue growth and lower profits, hurt by an unfavourable product mix, extended monsoons that impacted premium paint sales, and intense competition that kept pricing under pressure,” said Purohit.
West Bengal optimism
The company expects growth prospects in West Bengal to improve following the change of government in the state, with Roy saying the alignment between the state and central governments could accelerate infrastructure activity and economic growth.
Roy said Berger is “over indexed” in West Bengal, where it has its headquarters, two factories, and a strong brand presence, making the state strategically important for the company. He also acknowledged that West Bengal had been weak over the past year, affecting the company’s performance, but added that it now expects “significant growth” from the region, aided by faster infrastructure execution and stronger economic activity.
Meanwhile, the board has recommended Roy’s reappointment as managing director and chief executive for another four-year term from 1 July 2027 to 30 June 2031, subject to shareholder approval. Roy, who has led the company since 2012, has been credited with strengthening Berger’s market position.
