Asianpaint vs Berger Paints India Q3 FY26

AS

Asianpaint

Q3 FY26 · Consumer

Asian Paints reported Q3 FY26 standalone volume growth of 7.9% and value growth of 2.8%, with decorative coatings volume at 8.3% and value at 4.4% for the overall coatings business. Gross margin expanded 200 bps to 44.9% and PBDIT margin improved 100 bps to 21.4%, driven by raw material deflation and cost efficiencies. The festive season was compressed due to an early Diwali and prolonged monsoon, but November and December showed stronger momentum. Rural demand outperformed urban, and the B2B and industrial segments continued to grow at high-teens. Management expects volume growth to sustain in the 8-10% band for Q4, with the volume-value gap persisting around 4-5% due to mix. Risks include sustained competitive intensity from new entrants and potential raw material inflation from geopolitical volatility.

Guidance read

Volume growth to sustain in 8-10% band in Q4: Management expects volume growth to remain in the high single-digit to low double-digit range for the next quarter, similar to Q3. PBDIT margin guidance maintained at 18-20%: Despite current margins at the upper end, management reiterated the 18-20% PBDIT margin band for the medium term, given competitive intensity and investment needs. Volume-value gap of 4-5% to persist: Management indicated that the gap between volume and value growth will likely remain around 4-5% due to product mix, with economy and upgradation segments balancing premiumization. B2B and industrial segments to grow faster than retail: Management expects the B2B and industrial paints segments to continue outpacing retail decorative growth, driven by government infrastructure and private capex.

Risk read

Key risks include Sustained competitive intensity from new entrants — Management acknowledged that competitive intensity remains high with new players and the amalgamation of two competitors, which could pressure pricing and market share.; Raw material inflation from geopolitical volatility — Management flagged that crude oil and TiO2 prices could rise due to geopolitical tensions, potentially reversing margin gains.; Weakness in home décor business (White Teak) — The home décor segment, particularly White Teak, continues to face bottom-line pressure, leading to an impairment of INR 94.4 crore. Management noted that the bath category remained weak.; Demand recovery uncertain despite green shoots — When asked about demand recovery, management stated that it may take another 1-2 quarters to see meaningful improvement, indicating uncertainty in the near-term demand environment..

Promise ledger

Of 1 tracked promise, management 0 met, 0 close, 1 missed.

Berger Paints reported a muted Q3 FY26 with standalone revenue growth of just 0.4% YoY, while volume grew 8.5%, reflecting a sharp value-volume gap driven by mix shift toward economy products and price cuts. Gross margin expanded to 41.2% (highest in 15 quarters), but EBITDA margin at 16.1% remained within the guided 15-17% range. PAT declined 2.5% YoY. Demand improved sequentially from a negative October to mid-single-digit growth in December/January, but the anticipated pent-up recovery did not materialize due to dealer inventory destocking. Management expects volume growth to reach double digits next year, but value growth will lag by 4-5% due to sustained mix shift. Competitive intensity from the new entrant has stabilized, but market share saw a marginal decline. Key risk: demand recovery may remain tepid if macroeconomic headwinds persist.

Guidance read

Volume growth to reach double digits next year: Management expects volume growth to improve to double digits (12-13%) in FY27, with value growth lagging by 4-5%. EBITDA margin to remain within 15-17% range: Operating margins are expected to stay within the guided band of 15-17%, with gross margins sustained as a key objective. Capex of ~1,800-2,000 cr for two new factories: Planned investment of about 1,800-2,000 crore for new factories at Panagar and Odisha, funded by internal accruals.

Risk read

Key risks include Demand recovery slower than expected — Despite sequential improvement, the anticipated pent-up demand did not materialize, and dealer destocking may continue to weigh on near-term growth.; Market share loss to new entrant — Management acknowledged a marginal market share decline (from ~19.6% to ~19.4%), with gains going to the new challenger, especially in certain regions.; Value-volume gap persists due to mix shift — The structural shift toward lower-ASP products (economy emulsions, textures, tile adhesives) is expected to keep value growth 4-5% below volume growth for the next 1-2 years.; Competitive intensity from other players — While the main challenger has stabilized, other players (e.g., JSW, Astral) and regional entrants could incrementally impact growth by 1-1.5%..

Promise ledger

Scorecard data is being built as historical quarters are processed.