Berger Paints India Ltd shares experienced a dramatic surge on Wednesday, rising as much as 9.27% to ₹533.35 per share on the National Stock Exchange (NSE). According to reports from The Economic Times, the stock was trading 6.54% higher at ₹520 at 9:44 am, reflecting strong investor confidence following the company's robust quarterly results. However, shares ended 0.98% lower at ₹489 apiece on Tuesday, with the stock having slipped over 9% in the past year, sharply underperforming the Nifty 500 index which has declined nearly 1% during the same period.
The paint manufacturer delivered exceptional Q4 FY26 results with consolidated profit after tax surging 27.5% to ₹335.25 crore compared to ₹262.91 crore in the same period last year. As reported by Storyboard18, revenue from operations climbed 6.1% to ₹2,868.03 crore in Q4 FY26, up from ₹2,704 crore in the corresponding quarter of the previous fiscal year. The company achieved healthy volume growth of 11.8% for the quarter, with EBITDA growing 12.6% to ₹481.7 crore and operating margins expanding to 16.8% from 15.8% — the highest in ten quarters. The strong performance was aided by gross margins hitting a 12-quarter high, supported by favourable product mix, muted raw material prices and partial benefit from withdrawal of anti-dumping duty on titanium dioxide. Gross margins for the March quarter reached 42.3%, the highest in three fiscals, aided by favourable mix enrichment, waning impact of economy segment price cuts, and partial benefit from withdrawal of anti-dumping duty on TiO₂. According to PTI, the progressive demand improvement seen in the previous quarter continued into Q4, which enabled the achievement of healthy volume growth, supported by qualitative improvement in mix and softening of raw material prices.
The company's board has recommended a dividend of ₹4 per share of face value ₹1 each for FY26, subject to approval at the upcoming annual general meeting. According to Live Mint, the Board of Directors has recommended payment of a dividend of ₹4.00 per equity share of face value Re 1 each fully paid-up, representing a 400% payout for the financial year 2025-26, subject to the approval of shareholders at the 102nd Annual General Meeting. CEO and Managing Director Abhijit Roy highlighted that the automotive segment performed strongly due to increased demand after GST cuts and lower financing costs, while the general industrial segment also witnessed good growth. The company expects calibrated price increases of over 11% initiated in a staggered manner from end-March 2026 to support gross margins amid rising raw material costs. The board also reappointed Abhijit Roy as Managing Director and CEO for a further four years from July 1, 2027 to June 30, 2031. For fiscal 2026, the company posted a consolidated net profit of ₹1,096 crore, up from ₹1,077.5 crore in FY25, with revenue from operations rising 2.9% to ₹10,420 crore compared to ₹10,169.2 crore in the previous financial year.
Decorative paints delivered double-digit volume growth, with new premium launches Kolor Plus and Kolor Plus Glow gaining traction. The company's retail footprint expanded significantly to approximately 1,900 stores with over 700 additions during the full year, while tinting machine installations crossed 10,000 units — with 2,600-plus deployments in Q4 alone. Construction chemicals and waterproofing continued to outperform, while wood coatings posted robust double-digit growth. Automotive coatings benefited from sustained traction in the two-wheeler segment, lower financing costs and GST cuts. According to PTI, the Decorative segment delivered strong double-digit volume growth, along with sequential improvement in value performance, supported by pre-price-hike channel pick-up and strong traction in premium emulsions. The company expects growth to be led by traction in construction chemicals, waterproofing and wood coatings segments, and upcoming product launches, while competitive intensity is expected to remain elevated. Protective and powder coatings registered improvements month-on-month indicating a recovery in growth levels towards the end of the quarter. Subsidiaries and joint ventures including Bolix SA, Berger Becker Coatings, Berger Nippon and Berger Rock delivered strong double-digit growth in both topline and operating profit during the quarter, while SBL Specialty Coatings Private Limited posted moderate growth in revenue and profitability.
On the outlook, Roy said the gradual improvement in domestic demand indicators across segments and markets, the sequential monthly uptick in demand are all positive indicators, and results in the months ahead are expected to reflect these movements. However, he cautioned that forex volatility and geopolitical uncertainty continue to pose near-term margin risks on both supply disruptions and raw material inflation. The calibrated price increase of over 11% initiated in a staggered manner from end-March 2026 is expected to support the gross margin amid rising raw material costs. In FY26, consolidated net profit was at ₹1,128.02 crore compared to ₹1,182.81 crore in FY25, with total expenses higher at ₹2,499 crore compared to ₹2,380.55 crore in the previous year. Looking ahead to FY27, 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 initiatives are likely to help maintain operating margins within the guided range. The company will continue investing in branding, distribution expansion and store-led urban market initiatives to drive growth, while flagging risks including West Asian geopolitical disturbances, volatility in crude-based derivatives, rupee depreciation, supply-side disruptions and inflationary pressures as key factors to monitor for the sector.
