Paint majors delivered better-than-expected performance in Q4FY26, with the top three listed companies by market capitalisation - Asian Paints, Berger Paints, and Kansai Nerolac - gaining 10-13% over the last month. According to Business Standard, Asian Paints delivered a better-than-expected volume growth as well as revenues which hit multi-quarter highs, with the company posting decorative volume growth of over 12% year-on-year and an improved product mix due to higher growth in premium-luxury segments. The strong performance has boosted market confidence, with paint companies now expecting to maintain their growth momentum despite ongoing cost pressures.
Asian Paints Ltd expects volume growth of 8%-10% in FY27 as demand remains steady across rural and urban markets, with management citing encouraging trends in April and May despite inflation and geopolitical risks. According to reports from NDTV Profit, Managing Director and Chief Executive Officer Amit Syngle stated during the company's post-earnings conference call that the company is confident overall demand conditions should continue to support high single-digit volume growth through the current financial year. Syngle noted that "We have been seeing some early shoots in April and May and we believe we should be able to achieve at least high single-digit volume growth." The improved demand outlook is supported by lower competitive intensity with new players also taking price hikes which are reducing the price gap with incumbents, as reported by Business Standard. However, Syngle cautioned that "There is no change in terms of what we see. The intensity of competition still remains."
Paint manufacturers are implementing multiple rounds of price hikes to offset rising crude-linked raw material costs, with crude oil derivatives accounting for 30-35% of the paint industry's raw material costs. Asian Paints has already implemented limited price increases and is evaluating further hikes, with Syngle stating the company is "continuously evaluating this in terms of the way we want to kind of go. But at the same time, some minimum increases are something which we have already passed in the market, and some more might happen as we kind of go ahead as we look at it." According to Business Standard, paint makers are taking calibrated price increases to protect margins while attempting to minimise any adverse impact on demand. The company has taken price hikes of 11% in April and May against raw material cost increase of 20%, with plans to increase prices partially while absorbing some inflation through cost control, better mix and operating efficiencies. Berger Paints has implemented three price increases in Q1 with a fourth one coming up, resulting in cumulative increase of 11-12% in decorative paints, as reported by Upstox.
The country's largest paintmaker reported encouraging demand trends across all three months of the March quarter, helping the company return to double-digit volume growth. As reported by NDTV Profit, decorative paints volume grew 12.4% in the quarter, while value growth stood at 10.2%, compared to decorative paints volume growth of close to 9% for FY26. According to Business Standard, Berger Paints' number two player in the decorative paints segment reported volume growth hit the highest levels in 12 quarters, with standalone volume up 11.8% year-on-year and value growth at 6.7%. The Indian paint industry remains intensely competitive with Asian Paints, Berger Paints, and Kansai Nerolac controlling over three-fourths of the market, though competitive intensity has eased with new players taking price hikes. In the latest market performance, Asian Paints was trading nearly 2% higher at ₹2,722.50, Indigo Paints was up 3.24% at ₹1,023.35, Berger Paints India was trading nearly 3% higher at ₹514.35, and JSW Dulux was at ₹3,182.30, up 1%, as reported by Upstox.
Most paint majors expanded their margins on a year-on-year basis both at gross and operating profit levels, benefiting from lower input costs and cost control measures. Asian Paints saw gross and operating profit margins expand by 90 basis points and 215 basis points, respectively, while Kansai Nerolac reported gross margins expanded by 20 bps and operating margins gained 195 bps due to cost efficiency programmes. According to Business Standard, Asian Paints expects volume growth to come in at 8-10% year-on-year in the next few quarters despite pricing actions, with a better product mix expected to bridge the value-volume gap to 3-4% compared to the previous guidance of 4-5%. The company anticipates value growth to outpace volumes going forward, though the impact of increased retail prices on volumes remains a key monitorable factor. Kansai Nerolac Managing Director Pravin Chaudhari noted that "market conditions have been steadily improving since November last year with a constant uptick in the market," while JSW Dulux Joint Managing Director Rajiv Rajgopal highlighted that "demand is coming back, but the two biggest variables for the paint industry remain crude and forex, which need to be monitored very closely."
