Berger Paints India vs JSW Dulux Q4 FY26

BE

Berger Paints India

Q4 FY26 · Manufacturing

Berger Paints delivered a strong Q4 FY26 with standalone volume growth of 11.8% and value growth of 6.7%, driven by healthy traction across decorative and industrial segments. Gross margin expanded to a 12-quarter high of 42.3% and EBITDA margin reached an 10-quarter high of 18.3%, aided by favorable mix, operating leverage, and lower raw material costs. PAT grew 38% including an insurance claim reversal. Management guided for FY27 volume growth to hold at similar levels with value growth outpacing volume due to cumulative price hikes of ~12%. Risks include elevated competitive intensity and potential demand softness from inflation. The new entrant's pricing discipline has improved, supporting industry rationality.

Guidance read

Cumulative price hikes of ~12% in Q1 FY27: Management has taken three price increases in Q1 and a fourth on May 15, totaling ~12% to offset raw material inflation. FY27 volume growth expected to hold at similar levels: Volume growth expected to be similar to FY26, with value growth significantly higher due to price hikes. EBITDA margin guidance maintained at 15-17%: Management reiterated the 15-17% EBITDA margin range on a 12-month basis, with potential to exceed temporarily. Nepal business expected to recover with double-digit growth: After election-related disruption, Nepal has seen robust double-digit growth in recent months and is expected to recover.

Risk read

Key risks include Elevated competitive intensity — Despite improved pricing discipline from new entrants, competitive pressure remains high and could impact market share.; Raw material cost inflation and rupee depreciation — Sharp rupee depreciation and volatile crude-based derivatives could pressure margins if not fully offset by price hikes.; Potential volume impact from price hikes — Analyst raised concern that 12% price increase could dampen demand; management believes impact will be marginal.; Channel inventory buildup — Analyst noted channel inventory may have risen materially due to pre-buying ahead of price hikes, which could affect future orders..

Promise ledger

Scorecard data is being built as historical quarters are processed.

JS

JSW Dulux

Q4 FY26 · Diversified

JSW Dulux delivered a record 23% volume growth in Q4 FY26, driven by pricing corrections and strong performance across both decorative and industrial verticals. Revenue grew 6.2% YoY on a like-to-like basis, with the gap between volume and revenue attributed to price and mix adjustments. EBITDA margin contracted to 14.4% (down 60bps YoY) due to elevated raw material costs and competitive pricing. Management guided for double-digit volume growth in FY27, targeting market share gains, though near-term margin pressure persists from crude-linked inflation. The company is integrating operations with JSW Paints, with systems integration expected post-Diwali. Key risk: sustained raw material inflation could further compress margins if pricing actions lag.

Guidance read

Double-digit volume growth target for FY27: Management targets double-digit volume growth in FY27, supported by pricing corrections and market share gains. Price increase of 9.7% executed by mid-May: Industry price increase of ~9.7% taken by May 15, but raw material inflation of 24-25% implies further 3-4% pricing needed. Systems integration post-Diwali: Integration of SAP systems with JSW Paints planned after Diwali, enabling cross-manufacturing and efficiency gains.

Risk read

Key risks include Raw material inflation may compress margins — Crude-linked raw material costs rose 24-25%, and only 9.7% price increase has been taken, leaving a gap of 3-4% that may pressure margins.; Competitive intensity remains elevated — Management acknowledged extreme competition, with players offering high discounts and trade spends, potentially limiting market share gains.; Integration risks from JSW Paints merger — Cultural and systems integration is ongoing; dealer integration for retail is only planned for early next year, posing execution risk..

Promise ledger

Scorecard data is being built as historical quarters are processed.