Berger Paints (I) Limited — Q4 FY25
Berger Paints delivered a strong Q4 FY25 with 4.4% revenue growth and 19.8% EBITDA growth, driven by 7.4% volume growth and gross margin expansion to 41.2%.
bullish
high
✓ Verified against BSE filing
Claim Ledger
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.
82%Questions answered0Evaded / deflected11Questions audited
Partial answer
High priority
What drives higher volume growth vs peers and outlook for double-digit growth in FY26?
Asked by Mihir Shah, Nomura
Management gave qualitative drivers but avoided committing to double-digit growth, using aspirational language.
no commitment on double-digitaspirational language
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Question
Firstly, on the volume growth, your volume growth has been higher versus other listed players since past few quarters. What would you attribute this differential or increase in differential growth to? ... do you see volumes coming back to double-digit growth in FY26?
Abhijit Roy, Managing Director and CEO
This volume growth is coming on account of two, three factors. ... We are already at about 7.5%-8%. Going towards double-digit is not that difficult if the conditions do not deteriorate.
Partial answer
Medium priority
What is driving sharp improvement in subsidiary performance and expected growth for FY26?
Asked by Mihir Shah, Nomura
Management explained drivers but did not quantify expected growth rate for subsidiaries in FY26.
no specific growth number for FY26
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Question
My second question is on the subsidiaries. There is a sharp improvement in the subsidiary performance these past two quarters. ... What is driving this sharp growth? ... What is the level of growth that one should expect for FY26 for the subs overall?
Abhijit Roy, Managing Director and CEO
I think there are two things which have happened majorly. One is, of course, the Polish division, which has been doing relatively better. ... The other part is Nepal, as you rightly mentioned. ... It is continuing to grow, and it will continue to do that right up to the third quarter of this year.
Answered
Medium priority
Will employee cost growth normalize to 8-10% or remain elevated at 15%?
Asked by Mihir Shah, Nomura
Management gave a specific range (12-13%) and explained the reason for elevated growth.
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Question
Should we think that the employee cost or the number of employees or feet on the street is now constant and growth will normalize, or the employee cost growth will normalize back to 8%-10% levels, or do you foresee continuation of addition of feet on the street, and one should expect employee cost to grow again at 15% rate?
Abhijit Roy, Managing Director and CEO
No, I think it will not come to 9%-10%. It will still be elevated a little bit because we are adding manpower. ... It will be at around the 12%, 13%, probably around the 13% level rather than the 15% level that you have been seeing.
Partial answer
High priority
Market share trends including Birla Opus, urban vs rural, and FY26 margin and revenue guidance.
Asked by Anil Rajoshi
Management gave qualitative revenue growth outlook but no specific number; margin band reiterated.
no specific revenue growth numberqualitative guidance only
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Question
In terms of market share, if you can share more color ... whether the trend is similar for us ... Is the market share gain across the regions? ... where do you see the EBITDA margin in a way panning in FY26? ... where do you see the revenue growth number, high single digit or low double-digit types?
Abhijit Roy, Managing Director and CEO
The market share figures that I shared with you is primarily with the listed players. ... we have still gained market share, even if we add Birla into the market share calculation. ... Margin, we have always indicated the band will be maintained at the 15%-17%. ... As far as the revenue growth is concerned, we hope to improve from current levels.
Answered
Medium priority
Why are other expenses down YoY despite competitive intensity?
Asked by Karthik Chellappa, Indus Capital
Management explained the decline due to Sandila plant efficiency and confirmed A&P spend was flat.
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Question
On a standalone basis, if I were to look at, let's say, your other expenses this quarter, that's actually down year on year. ... Could you give some color on what are the items that have experienced a decline, and how has your advertisement and promotion expenses panned out this quarter?
Abhijit Roy, Managing Director and CEO
The primary reason for what you see as other expenses going down, last year, if you recall, the Sandila plant had become operational. ... The advertising and promotion we have held at last year levels, we have not reduced or we have not increased substantially either.
Answered
Medium priority
Is the inventory buildup due to pre-buying ahead of anti-dumping duty?
Asked by Karthik Chellappa, Indus Capital
Management confirmed pre-buying and explained the rationale, directly answering the question.
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Question
If I just scroll through the items, I think the biggest delta is basically coming from inventory. There has been almost an INR 3.00 billion delta on working capital pertaining to inventory. Is it a case that you have done a lot more pre-buying given the crude oil deflation that you saw during the quarter, which actually helped the gross margin, but in turn, impacted your cash flow from operations?
Abhijit Roy, Managing Director and CEO
Karthik, you are right. We did purchase certain items like rutile. We knew that the anti-dumping duty was coming in. We purchased some extra rutile. Similarly, in monomers also, we had got some very good rates at the end of the quarter, and we purchased some extra monomers.
Partial answer
High priority
What assumptions for Birla Opus market share and impact of their east plant on Berger's share gains?
Asked by Karthik Chellappa, Indus Capital
Management gave Birla sales estimate but did not detail assumptions; future share gains described qualitatively.
no explicit assumption for market share calculationqualitative on future gains
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Question
I'm just curious to see what assumptions have you used for your market share calculation for Birla Opus for the quarter and the year, if you can share that. ... should we expect that our market share gains, at least in FY26, might be slower than what we saw in FY25, just given the base effect that they are starting off on a low base?
Abhijit Roy, Managing Director and CEO
Birla Opus, our reading of the situation is that they have ended the year at around INR 2,000-2,100 crore net sales basis. ... factory presence does not make any difference at all. ... We should be able to hold and gain a little bit from the organized players who are there in the listed space.
Answered
High priority
What is the industry growth for Q4?
Asked by Amit Purohit, Elara Capital
Management gave a specific range (-1% to -2%) for industry growth.
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Question
First on the industry growth for Q4, what is your sense of what would be the industry growth for Q4?
Abhijit Roy, Managing Director and CEO
Industry growth, you can estimate yourself. I think it will be negative overall because it swings in that direction, actually, or flattish. It should be about minus one, minus two.
Answered
Medium priority
What is the CapEx guidance for FY26 and FY27?
Asked by Amit Purohit, Elara Capital
Management provided specific CapEx numbers for FY26 and indicated FY27 would be similar.
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Question
Sir, just on your CapEx guidance, what would be the CapEx for FY 2026 and FY 2027?
Abhijit Roy, Managing Director and CEO
CapEx, we have already indicated. In this year, CapEx 2026, basically, the Hindupur plant is coming up, which is an expansion there for the solvent base. That is about INR 250 crore. Then we will initiate our Panagar operation, which is a total cost of about INR 500 crore, but the initial first year possibly will be INR 150 crore.
Answered
Medium priority
Will sequential improvement come from volume or value?
Asked by Mirunmay, Asit Mehta
Management clearly stated both volume and value improvement, with value benefiting from gap closure.
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Question
You indicated that you would see sequential improvement going ahead during this year. Do you expect that to come in more from the volume side, or volumes will likely remain stable and the gap between volume and value will reduce sequentially?
Abhijit Roy, Managing Director and CEO
There will be a volume improvement as well. The value improvement from compared to last year will be more because of the volume-value gap reducing, as you are aware that this 4.5% gap, which we were suffering from the whole of last year till the third quarter end, will not be there anymore.
Answered
Low priority
Where were the 8,000 tinting machines added geographically?
Asked by Harsh Shah, Marzban Mutual Fund
Management explained the geographic spread and rationale, though not pin-point specific regions.
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Question
This printing machine edition, which we see this year, it's 8,000 printing machine editions were basically compared to retail footprint edition of 1,000 stores. ... Could you help me explain which geography, let's say, which areas where we've done this high printing machine editions?
Abhijit Roy, Managing Director and CEO
It is spread across the entire country. ... It is mostly upcountry where you need more stronger distribution.
Answered
Medium priority
Is the 15-17% margin band for standalone or consolidated?
Asked by Parsi Panthiki
Management gave a clear one-word answer.
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Question
This 15%-17% band, is that for the standalone or consolidated?
Abhijit Roy, Managing Director and CEO
Both.