The Indian paint industry has undergone significant transformation with the entry of Birla Opus and JSW Paints fundamentally altering competitive dynamics. According to The Financial Express, the Aditya Birla Group's entry via Birla Opus in March 2024 and JSW Paints' acquisition of majority stake in AkzoNobel India in June 2025 have disrupted the market landscape. Asian Paints, which held an estimated 59% market share in the Indian decorative paints segment around March 2024, saw its market share decline to 53% as of recent estimates. The entry of these large corporates has forced established players like Asian Paints and Berger Paints to rework their strategies, focusing on expansion in tier-III and tier-IV towns and making products more relevant to consumers in smaller cities across the country.
Leading paint manufacturers reported robust performance in the June quarter while maintaining optimistic growth projections for the remainder of FY27. Asian Paints reported a 39.6% jump in consolidated net profit at ₹1,559.45 crore for Q2 FY27, with revenue from operations rising 17.9% to ₹10,541.9 crore. According to The Financial Express, the company's decorative business grew at a healthy volume growth of 9%, supported by calibrated pricing actions, translating into robust value growth of 16.6%. Berger Paints India also delivered strong performance with consolidated revenue growing 12% y-o-y to ₹3,583.7 crore and net profit increasing 28.6% to ₹405 crore. Birla Opus highlighted segment revenue of ₹1,661 crore, representing a growth of 64% y-o-y, establishing itself as the third-largest decorative paints player in the market.
Paint stocks have come under pressure as Brent crude prices rose towards $97 per barrel amid concerns over prolonged supply disruptions through the Strait of Hormuz. According to Upstox Securities, paint stocks, along with other crude-sensitive sectors, were in the spotlight as investors worried about the impact of higher crude prices on input costs. The surge in crude prices adds to existing concerns about uncertainty in crude-linked raw material costs that manufacturers have been facing, as the bulk of production costs rely on petroleum-derived resources. Companies remain cautious about geopolitical tensions affecting crude oil prices, which can have direct bearing on manufacturing costs and margins. However, as reported by The Financial Express, Asian Paints' total input costs as a percentage of revenue from operations declined 100 basis points y-o-y to 56.4% in Q1 FY27, while operating profit margin rose 240 basis points to 20.6%, demonstrating effective cost management strategies.
Paint manufacturers are implementing strategic price increases to offset rising input costs while maintaining competitive positioning. Kansai Nerolac expects an additional 3-5% price increase in Q2 for decorative paints, building on the 5% hike already implemented in Q1. As reported by Business Standard, Asian Paints CEO Amit Syngle noted that competition remains intense across all segments, with the gap between economy and premium segments not being significantly different. The competitive intensity is particularly pronounced in the economy segment, where companies use higher discounting to attract contractors and dealers. Berger Paints is looking at price increases of roughly 7.5-8.59%, which should help offset some moderation in volumes and support overall revenue growth. Kansai Nerolac MD Pravin Chaudhari confirmed that decorative paints will see an additional 3-5% price increase in Q2, with industrial paints also expecting 3-5% hikes. Companies are increasingly relying on pricing to cushion the impact of higher input costs, as petroleum-derived materials accounting for a substantial portion of the industry's raw-material basket.
The paint industry faces varying valuation challenges despite strong operational performance. Asian Paints trades at a consolidated P/E of 49.1 times, while Berger Paints India trades at 46.1 times and Kansai Nerolac Paints at 24.3 times. According to The Financial Express, Kansai Nerolac Paints trades at a 47-50% discount to Asian Paints and Berger Paints India, reflecting slower growth in net sales and profits compared to rivals. Asian Paints ended 1% lower at ₹2,499 and is hovering above its 52-week low of ₹2,116 reached on March 23, 2026. Berger Paints India was broadly flat at ₹485 and trades within its historical P/E range of 43.4-96.2 times. Kansai Nerolac Paints ended flat at ₹194.4 and has traded between 21.8-69 times P/E over the past five years. The valuation gap appears to reflect investor concerns about the difficult operating environment, strong competition from large industrial houses, and surging input costs that have not been fully factored into current market prices.
