Berger Paints India shares surged as much as 9.21% to ₹532.75 per share on the BSE on Wednesday, May 13, following the announcement of its Q4FY26 and FY26 financial results. According to reports from Business Standard, the stock was trading at ₹517.10 at 10:34 AM, up 6% from the previous close, while the benchmark BSE Sensex gained 140 points to 74,699 levels. The strong investor sentiment was further bolstered by favourable commentary from brokerages, which expect the company to gain market share as the paint industry recovers in FY27.
During Q4FY26, Berger Paints delivered robust financial results with consolidated profit after tax rising 27.5% year-on-year to ₹335.25 crore from ₹262.91 crore reported in Q4FY25. As reported by Business Standard, total income from operations increased 6.1% Y-o-Y to ₹2,868.03 crore from ₹2,704.03 crore in the year-ago period. The company also announced a dividend reward of ₹4 per share for its shareholders. On the outlook, the company said demand conditions continue to be closely monitored, with gradual recovery expected across decorative and industrial businesses.
ICICI Securities has retained its 'Add' rating on the stock and revised its DCF-based target price to ₹550 from ₹530 earlier, implying a target P/E of 40x on FY28E EPS. According to Business Standard, the assigned target price indicates an upside of nearly 3.23% from the current market price. The brokerage highlighted Berger's aggressive investments in urban distribution, rollout of 1,900 exclusive stores, and 26% expansion in tinting machines during FY26. They believe FY27 is likely to be a turnaround year with revenue and PAT CAGRs of 11.5% and 16.3% respectively over FY26–28E.
Equirus Securities has retained its 'Long' rating on Berger Paints, setting a June 2027 target price of ₹577 compared with ₹578 earlier, at 46x TTM EPS of ₹12.6. As reported by Business Standard, the assigned target price implies an upside of nearly 8.30% from the current market price. The brokerage highlighted that the company reported healthy Q4FY26 results with consolidated revenue rising 6.1% Y-o-Y to ₹2,870 crore, led by strong 11.8% volume growth - the highest since Q1FY23. Equirus expects Ebitda margins to remain within the guided 15-17% range, with FY27 likely at the lower end.
According to ICICI Securities analysts, the key reasons for expecting a turnaround in FY27 include price hikes in low teens and revival in volume growth. As reported by Business Standard, they noted that as Birla Opus has raised prices more than peers, competitive intensity has likely eased. The brokerage expects smaller/unorganised players to be more impacted than larger peers due to steep inflation in commodity prices. They believe a reduction in competitive intensity, operating leverage and cost-saving initiatives may drive Ebitda margin upwards in FY27 over the favourable base of FY26 (15.4%).
