Berger Paints India delivered impressive fourth-quarter results with consolidated net profit jumping 27.52% year-on-year to ₹335.25 crore, significantly outperforming market expectations. The stock surged over 9% on Wednesday, hitting an intraday high of ₹532.75 - the company's biggest single-day gain in 2026. This strong performance was driven by sharp margin recovery and 12% volume growth, demonstrating robust operational execution. The rally significantly outperformed the broader paints sector (+3.8%) and the flat Sensex, with shares snapping a 2-day losing streak and trading over 3.8x the 20-day average volume. The stock has surged over 13.4% in the past month, showing strong relative strength against a 3% decline in the Sensex.
The company achieved significant margin improvements during Q4FY26, with gross margins expanding to a 12-quarter high of 44.2% compared to 42.7% in the year-ago period. EBITDA increased 12.6% year-on-year to ₹482 crore from ₹427 crore, while EBITDA margin improved by 100 basis points to 16.8% from 15.8%. The operating margins also reached a 10-quarter high, driven by an improved product mix and easing raw material prices. According to The Economic Times, gross margin for the quarter stood at 42.3%, the highest level seen in the last three financial years. This strong performance was aided by better operational efficiency, cost management, and favourable mix enrichment, lower impact from price cuts in the economy segment and partial benefits from the withdrawal of anti-dumping duty on titanium dioxide. However, the company faces ongoing competitive pressures and economic uncertainties that may impact future margins.
According to latest reports, the company reported double-digit volume growth of 11.8% during the quarter, demonstrating strong demand across its product portfolio. Managing Director Abhijit Roy said the gradual improvement in demand witnessed in the previous quarter continued through the fourth quarter, helping achieve healthy volume growth. The protective coatings segment delivered high single-digit volume and value growth, while the automotive coatings business posted strong double-digit volume growth along with high single-digit value growth. The company's India operations maintained market share at around 20%, while businesses such as construction chemicals and waterproofing continued to outperform. Looking ahead, Berger Paints expects growth to be driven by demand in construction chemicals, waterproofing, wood coatings and upcoming product launches. The latest quarterly performance comes amid improving demand trends in the decorative paints segment and easing input cost pressures.
To manage rising input costs, the company is implementing staggered price hikes exceeding 11% since late March to cover higher input costs and support gross margins. Management highlighted rising inflation as a risk to demand, prompting these strategic pricing decisions. The company's efforts in network expansion continue to show positive results, with expansion plans and improving growth in low market share urban markets. Berger Paints expanded its retail footprint to nearly 1,900 stores, while installations of tinting machines crossed the 10,000-unit mark. On the outlook, the company said staggered price hikes introduced from March onwards are expected to support gross margins amid rising raw material costs, while ongoing cost optimisation efforts should help maintain operating margins within the guided range. The company also faces key factors to watch including developments in West Asia, volatility in crude-linked derivatives, rupee depreciation and supply-side disruptions given the inflationary pressures they could create.
For the full financial year FY26, Berger Paints reported a consolidated net profit of ₹1,128.8 crore, down 4.6% from the previous year, with revenue from operations rising 2.9% to ₹11,880.3 crore. EBITDA declined 1.2% to ₹1,833.3 crore for the year. The company said annual profitability was impacted by the implementation of newly notified labour codes as well as a one-time loss arising from a warehouse fire in Barasat, West Bengal. As India's second-largest paint maker, the company operates in a growing market with the Indian paints and coatings sector forecast to reach USD 11.9 billion by 2034, expanding at a 4.88% CAGR through 2034. The stock has underperformed recently, falling about 9.58% in the last six months, with the year-to-date drop of over 8% suggesting investors are factoring in ongoing challenges. Key competitors include Asian Paints, which is set to report Q4 FY26 results on May 29, 2026, and Akzo Nobel India, whose Q4 FY25 saw a small profit dip with Q4 FY26 revenue expected to grow 6-9%.
