Berger Paints (I) Limited — Q3 FY26
Berger Paints reported a muted Q3 FY26 with standalone revenue growth of just 0.4% YoY, despite 8.5% volume growth, highlighting a persistent value-volume gap driven by mix shif...
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Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions audited
Answered
High priority
Sales growth momentum excluding October, and January trends.
Asked by Mihir Shah, Nomura
Provided specific monthly growth trends and confirmed January continuation.
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Question
if you strip off the month of October from the results, how is the sales growth momentum for November and December? And any insights you can share on how that continuity happened, is happening in January as well?
Abhijit Roy, Managing Director and CEO
October was negative... November did have a slight positive, and then December was better than that in mid-single digit type of a growth rate. And that is where we are in January as well.
Answered
High priority
Outlook for volume and value growth next year.
Asked by Mihir Shah, Nomura
Provided specific volume and value growth expectations for next year.
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Question
Can one expect any improvement in volumes to go to mid-teens levels in next year, and then you can go back to double-digit growth in value terms over the next year, sir?
Abhijit Roy, Managing Director and CEO
double-digit volume growth should happen... If the volume growth goes up to, say, 12%-13%, then the value growth should be in the range of 7%-8%.
Answered
High priority
Why optimism from last call has changed and demand outlook.
Asked by Aditya Bhartia, Investec
Explained the change in optimism with specific reasons like stock liquidation.
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Question
In the last conference call, we sounded a lot more optimistic... This time around, it has changed a bit... Just want to understand how things are changing on the ground.
Abhijit Roy, Managing Director and CEO
I was also optimistic... about being more closer to 6%-7%... Possibly also that... there was some amount of stock buildup which happened, which got liquidated...
Answered
Medium priority
Progress on anti-dumping duty on TiO2.
Asked by Aditya Bhartia, Investec
Provided clear update on court ruling and refund status.
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Question
Is there any progress that has been made on anti-dumping duty on TiO2?
Abhijit Roy, Managing Director and CEO
we did fight this case, and we won this battle in the court... we've got part of the money back... As of now, there is no anti-dumping duty on titanium dioxide.
Answered
High priority
Bifurcation of value-volume gap into mix, price, and spends.
Asked by Karthik Chellappa, Indus Capital Advisors
Provided specific percentage breakdown of the value-volume gap.
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Question
if I were to bifurcate it between... mix level changes... price revisions... how will that split look roughly?
Abhijit Roy, Managing Director and CEO
mix change will be probably be about 3%-3.5%... about 2%-2.5% were on account of direct price drops... about 1.5 odd percentage which has gone up [painter spends].
Answered
Medium priority
Reason for continued mix shift towards economy.
Asked by Karthik Chellappa, Indus Capital Advisors
Explained the duration and reason for continued mix shift.
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Question
Why do you think that the mix... will continue?
Abhijit Roy, Managing Director and CEO
the growth of these categories is much higher... starting from a low base... this is going to continue for the next possibly 1, 1.5, 2 years maybe.
Answered
High priority
Reason for slower market share gains and loss this quarter.
Asked by Karthik Chellappa, Indus Capital Advisors
Attributed share loss to base effects and competitor's low base.
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Question
the market leader has probably done slightly better than us... What would you attribute... the slowness in our market share gain?
Abhijit Roy, Managing Director and CEO
we have lost a little bit of market share... market leader has also lost market share... competitor leader... had a very low base... the gap between us and them in the fourth quarter was 9.5%.
Answered
Medium priority
Broader competitive landscape including new entrants and consolidation.
Asked by Tejas
Provided assessment of various competitors and quantified impact.
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Question
when we zoom out... competitive landscape overall, not only from one new player, how would you read that?
Abhijit Roy, Managing Director and CEO
those type of competitors have been coming... they are not very disruptive... maybe all combined together, they may be again impacting the growth rate by 1-1.5%... the bigger impact is coming from that one player, which is stabilizing.
Partial answer
High priority
Disconnect between industry growth and nominal GDP growth.
Asked by Tejas
Acknowledged the logical expectation but deferred to conservatism without fully explaining the gap.
no specific reason for disconnectattributed to conservatism
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Question
if our bull case scenario is 7% value growth... India... hoping for 10% nominal GDP growth rate... where is the disconnect?
Abhijit Roy, Managing Director and CEO
why are we not looking at a 10% nominal growth... True, it should... But given the current context... we want to be conservative and be very sure that what we are saying, we should be able to deliver.
Evasive
Medium priority
Gross margin impact from new resin facility and use of savings.
Asked by Rishi Modi, Carlyle
Did not quantify margin impact and gave non-committal answer on use.
no specific bps givenvague about use of savings
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Question
how much gross margin, how many bps gross margin expansion should come from this, and what do we intend to do with that margin accretion?
Abhijit Roy, Managing Director and CEO
not very significant, I would say, though it will have some impact... possibly be utilized by us in the market... brand building efforts might require... more money there.
Answered
High priority
Capital allocation: organic capex, dividends, buybacks.
Asked by Rishi Modi, Carlyle
Provided capex plans and explicitly ruled out buybacks.
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Question
what amount of that will be used for organic CapEx... are we open to doing buybacks... instead of paying out dividends?
Abhijit Roy, Managing Director and CEO
we have plans for two factories... investment of about INR 1,800 crore-INR 2,000 crore... No, not at this present [buyback].
Partial answer
Medium priority
Initiatives to drive market growth and premiumization.
Asked by Aniruddha Joshi, ICICI Securities
Focused on product innovation but did not directly answer about ad spends or price cuts.
did not address ad spend or price cuts directly
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Question
what will be our initiatives to... drive growth of the market? ... what is really required... in terms of higher ad spends... price cuts?
Abhijit Roy, Managing Director and CEO
you need to create excitement by generating new product ideas... we keep looking at innovative product launches... we just introduced... DampShield, Color Plus, and the Metallic range.