Berger Paints India vs Kansai Nerolac Paints 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.

KA

Kansai Nerolac Paints

Q4 FY26 · Manufacturing

Kansai Nerolac reported a 7.6% standalone revenue growth in Q4 FY26, with PBDIT up 21% YoY, driven by improved product mix in decorative and double-digit auto demand. Decorative growth was mid-single digit, with a focus on premium products and new launches like Excel Sheen and XL Everlast. Industrial grew in higher single digits, with auto strong but other segments moderate. Management guided for 13-14% EBITDA margin, assuming raw material stability, and has taken cumulative price hikes of high single digits in decorative. Risks include prolonged West Asia crisis, crude volatility, and rupee depreciation. The company remains cautious on demand visibility due to inflation but sees green shoots from the past five months.

Guidance read

EBITDA margin target of 13-14% for FY27: Management reiterated its endeavor to maintain EBITDA margin in the 13-14% range, assuming raw material costs stabilize. Cumulative decorative price hikes of high single digits: Price increases of ~2% in March and 5-6% in April/May, totaling high single digits, to offset input cost inflation. Double-digit growth target for performance coatings: Management aims to grow the performance coatings segment in double digits, driven by infrastructure spending.

Risk read

Key risks include West Asia crisis and supply chain disruptions — Geopolitical tensions have caused crude price surges and supply chain issues, impacting raw material costs and availability.; Rupee depreciation increasing import costs — Sharp rupee depreciation has raised the cost of imported raw materials, pressuring margins.; Demand visibility remains uncertain due to inflation — Management described demand visibility as 'wait and watch' given the inflationary scenario, with potential impact on consumption.; New competition may intensify price wars — Analyst raised concern about aggressive pricing by new entrants; management noted freebies may have been withdrawn but advertising intensity remains high..

Promise ledger

Scorecard data is being built as historical quarters are processed.