Berger Paints shares surged over 9% in Wednesday's trading session following the company's quarterly results announcement. According to reports from ETMarkets, the stock hit this level soon after trading opened, with over four million shares changing hands on the bourse. The strong performance reflects positive investor sentiment following the company's financial results for the January-March quarter. As per The Economic Times, the stock rose as much as 9.21% to ₹532.75 per share on the BSE, with trading at ₹517.10, up about 6% from the previous close at 10:34 AM.
The company reported a remarkable 28% jump in net profit to ₹335.25 crore for Q4FY26, compared with ₹262.91 crore in Q4FY25, as reported by The Economic Times. This represents a significant turnaround in the company's financial performance, with the quarterly results driving positive market sentiment. Consolidated total income from operations rose 6.1% year-on-year to ₹2,868.03 crore from ₹2,704.03 crore in the previous year. The company also reported EBITDA of ₹481.7 crore in the March quarter, up 12.6% year-on-year. A key operating highlight was volume growth of 11.8% in the quarter, which the company described as the strongest since Q1FY23, as reported by The Economic Times.
Gross margin for Q4FY26 stood at 42.3%, which the company described as the highest level seen in the last three financial years, according to The Economic Times. The standalone EBITDA margin reached 18.3%, described as the highest in the past ten quarters. The company linked margin improvement to mix enrichment and raw material softness, with partial benefits from the withdrawal of anti-dumping duty on titanium dioxide, an input used in paints. Standalone revenue for the quarter came in at ₹2,504.00 crore, up 6.7% year-on-year, while standalone PAT rose 38.1% year-on-year to ₹327.28 crore, compared with ₹236.9 crore in the year-ago quarter, as reported by The Economic Times.
For the full year FY26, Berger Paints reported consolidated revenue from operations of ₹11,880.3 crore, up 2.9% year-on-year, while consolidated net profit for FY26 was ₹1,128.8 crore, down 4.6% from the previous year, as reported by The Economic Times. The annual profitability was impacted by the implementation of newly notified labour codes and a one-time loss arising from a warehouse fire in Barasat, West Bengal. However, FY26 EBITDA declined 1.2% year-on-year to ₹1,833.3 crore. Despite these headwinds, management expects operating margins to remain within the guided range, supported by cost optimisation and the benefit of pricing actions.
Brokerages remain bullish on the company's growth trajectory following the quarterly results, with positive sentiment extending beyond Berger Paints to the broader paint sector. Asian Paints and other paint companies saw rub-off effect, rising up to 5% in Wednesday's trading session, as reported by ETMarkets. ICICI Securities retained its 'Add' rating, citing Berger's potential to gain market share as the paint industry recovers in FY27, with the brokerage revising its DCF-based target price to ₹550 from ₹530 earlier, implying an upside of nearly 3.23% from current market price. Equirus Securities retained its 'Long' rating, setting a June 2027 target price of ₹577, pegged at 46x TTM EPS of ₹12.6, implying an upside of nearly 8.30% from current market price, as reported by The Economic Times.
