Berger Paints announced its Q2 FY26 results, revealing single-digit volume growth but subdued value growth. Performance was impacted by inclement weather and intense competition. Gross margins saw a slight dip due to lower exterior emulsion sales and a shift towards economy segments. The company continues to invest in expanding its dealer network and urban stores. A slight dip in PBDIT margin also occurred due to subdued value growth and increased brand spending.
Q2 FY26 Performance Overview
Berger Paints experienced high single-digit volume growth alongside low value growth during Q2 FY26. Growth was hampered by unfavorable weather conditions and heightened competitive pressures.
Key Financial Highlights
- Volume Growth: 8.8%
- Value Growth: 1.1%
A marginal decline in gross margin resulted from reduced sales of exterior emulsion products and a consumer shift towards more economical options. Consequently, the PBDIT margin saw moderation due to limited value expansion coupled with increased investment in brand development.
H1 FY26 Performance
- Total Income from Operations: ₹5,321.09 Crores, a 1.6% increase.
- PBDIT: ₹810.68 Crores, a -6.5% decrease.
- Profit before tax: ₹692.70 Crores, a -6.7% decrease.
- PAT: ₹470.01 Crores, a -12.1% decrease.
Standalone Results Q2 FY26
- Total Income from Operations: ₹2,458.47 Crores, a 1.1% increase.
- PBDIT: ₹311.19 Crores, a -18.8% decrease.
- Profit before tax: ₹234.93 Crores, a -23.6% decrease.
- PAT: ₹176.25 Crores, a -23.0% decrease.
Business Segment Performance
The decorative business saw slower value growth due to extended monsoon conditions affecting premium markets. A slight transition from premium/luxury products to economy emulsions was noted in both exterior and interior segments. The Construction Chemicals business demonstrated robust growth, and the Wood Coatings segment also posted strong results.
Strategic Initiatives
Berger Paints continues to invest in expanding its dealership network and increasing the number of stores in urban areas. The company’s store network now exceeds 1,600 outlets. The tinting network rollout remains on target, with over 5500++ machines installed towards the FY26 target of 10,000++.
Outlook
The company anticipates a demand recovery following Diwali, supported by improved weather conditions and the release of pent-up demand after the prolonged monsoon season. Gross margins are expected to improve in the short term, supported by benign raw material prices and an improved product mix.
Source: BSE
