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Berger Paints (I) Limited — Q1 FY26
Berger Paints reported a resilient Q1 FY26 with 5.5% volume growth and 2% value growth on a standalone basis, outperforming the industry which grew only 0.3% among listed players.
bullish
high
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Berger Paints reported a resilient Q1 FY26 with 5.5% volume growth and 2% value growth on a standalone basis, outperforming the industry which grew only 0.3% among listed players. Market share improved to 21.2% (standalone basis) driven by consistent outperformance. PBDIT margins expanded to 17.4% (vs 17.2% YoY) despite competitive pressures, aided by stable gross margins and operating leverage from the Sandila plant. The decorative segment saw mid-single-digit volume growth, while automotive and protective coatings performed well. Management expects demand to recover post-monsoon, targeting a return to 7-9% volume growth in H2. Key risks include currency volatility, geopolitical tensions, and sustained competitive intensity from new entrants. The exceptional item of INR 36.8 crore from a warehouse fire (fully insured) impacted PAT but is non-recurring.
बर्जर पेंट्स ने पहली तिमाही (अप्रैल-जून 2026) में अच्छा प्रदर्शन किया। कंपनी ने पेंट की बिक्री (वॉल्यूम) में 5.5% और कीमत के हिसाब से 2% की बढ़ोतरी दर्ज की। यह बाजार के दूसरे बड़े कंपनियों से बेहतर है, जिनकी बढ़त सिर्फ 0.3% रही। बर्जर की बाजार हिस्सेदारी बढ़कर 21.2% हो गई। कंपनी का मुनाफा (PBDIT) 17.4% रहा, जो पिछले साल के 17.2% से थोड़ा ज्यादा है। घरों में पेंट की बिक्री मध्यम रही, जबकि ऑटोमोटिव और सुरक्षात्मक पेंट अच्छा बिका। कंपनी को उम्मीद है कि बारिश के बाद मांग बढ़ेगी और दूसरी छमाही में बिक्री 7-9% तक पहुंच सकती है। गोदाम में आग लगने से 36.8 करोड़ रुपये का एकमुश्त नुकसान हुआ, लेकिन बीमा मिल गया है।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
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Risk Intelligence
Sustained competitive intensity from new entrants
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Read Transcript →Quarter Snapshot
Market Share (Standalone)
21.2%
+90bps YoY
Market share among listed players increased from 20.3% in Q4 FY25 to 21.2% in Q1 FY26.
Volume Growth
5.5%
-250bps YoY
Volume growth moderated due to early and heavy monsoon, but still ahead of industry.
Store Footprint
1,300+
+300 stores QoQ
Added over 300 stores in Q1, expanding retail network to 1,300+ stores.
Tinting Machine Installations
2,500+
On track for 10,000+ FY26
Installed 2,500+ tinting machines in Q1, targeting 10,000+ for the full year.
What Changed vs Last Quarter
NEW
Volume growth to return to 7-9% post-monsoon
Management expects volume growth to recover to 7-9% range after monsoon abates, with potential for high single-digit growth in H2.
NEW
Value growth to converge with volume growth by Q4 FY26
Expects value growth to reach high single digits (9-10%) by Q4 FY26 or early Q1 FY27 as mix improves and price cuts annualize.
NEW
10,000+ tinting machine installations in FY26
On track to install over 10,000 tinting machines during the fiscal year, with 2,500+ already installed in Q1.
UPDATED
PBDIT margin to remain in 15-17% band
Management reiterated margin guidance of 15-17% PBDIT, with current standalone margin at 17.4% within the band.
DROPPED
Revenue growth to improve sequentially in FY26
Revenue growth is expected to improve each quarter in FY26 as the volume-value gap narrows and demand recovers, with Q1 being slightly better than Q4 FY25.
DROPPED
CapEx of ~INR 400 crore in FY26
Capital expenditure for FY26 is guided at around INR 400 crore, primarily for Hindupur expansion (INR 250 crore) and initial spend on Panagar plant (INR 150 crore).
DROPPED
Market share gains to moderate to 0.3-0.4% annually
Management expects market share gains from listed players to normalize to 0.3-0.4% per year, lower than the exceptional gain in FY25.
NEW RISK
Heavy monsoon impacting near-term demand
Early and heavy monsoon in May-June led to lower volume growth (5.5% vs expected high single-digit). July also heavy, potentially deferring demand recovery.
NEW RISK
Currency volatility and geopolitical tensions
Management highlighted currency volatility, tariff wars, and geopolitical tensions as key risk factors for the business outlook.
NEW RISK
Margin pressure in Bolix UK operations
Bolix UK faced cost overruns due to project delays from regulatory changes, impacting consolidated operating profit. Recovery timeline uncertain.
RISK GONE
Anti-dumping duty on rutile impacting raw material costs
The government imposed anti-dumping duty on rutile, which could increase raw material costs by INR 15-20 crore annually if not overturned.
RISK GONE
Weak consumption demand and slower GDP multiplier
Overall consumption economy remains sluggish, with paint industry growth below historical GDP multiples, limiting volume upside.
RISK GONE
Employee cost growth remaining elevated
Employee costs are expected to grow at 12-13% due to continued hiring of feet on the street, pressuring margins.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q4 FY25
The government imposed anti-dumping duty on rutile, which could increase raw material costs by INR 15-20 crore annually if not overturned.
Fast read
Guidance and risk preview
Management expects volume growth to recover to 7-9% range after monsoon abates, with potential for high single-digit growth in H2.
New player (Birla) has gained ~5.5-6% market share, and JSW-Akzo merger could increase competition.
View Risks →