Berger Paints announced its financial results for the second quarter of FY27, reporting a standalone revenue growth of 11.9%. The consolidated revenue saw a growth of 13.2%. The company highlighted strong performance in its decorative and industrial segments, despite facing headwinds from raw material inflation. Strategic investments in brand campaigns and new product introductions were also discussed, with a focus on restoring margins and sustaining growth in the upcoming quarters.
Berger Paints India Limited Q2 FY27 Results Conference Call
Financial Highlights for Q2 FY27
Berger Paints India Limited hosted its Q2 FY27 results conference call on November 5, 2026. The company reported a standalone revenue growth of 11.9% for the quarter, with consolidated revenue growing by 13.2%. For the half-year ended September 30, 2026, standalone revenue grew by 12.3% and consolidated revenue by 12.5%.
Segment Performance and Margins
The decorative business registered a double-digit value growth, largely driven by price increases of approximately 8%. The industrial business also saw robust volume and value growth across its lines. However, gross margins were impacted by double-digit raw material inflation and the liquidation of high-cost inventory. The company noted that PBDIT consolidated growth was 5.2%, supported by subsidiaries. Operating margin compression was contained, despite an investment of ₹22 crore in the ‘Rang bana rahe’ campaign. For the half-year, the EBITDA-to-sales ratio stood at 14.4% for both standalone and consolidated figures. Standalone PBDIT saw a decline of 4.4% and PAT by 7.3%, while the half-year saw operating profit grow by 6.1% and PAT by 13.2%.
Strategic Initiatives and Outlook
Berger Paints emphasized its investments in brand building and consumer engagement, particularly with the new ‘Rangbanara Rahe’ campaign. The company expanded its retail store network to over 2,000 stores and added 4,800 tinting machines in the first six months. In the industrial segment, high double-digit volume and value growth were reported. The company introduced new products such as waterproof tile adhesive, decorative panels, and Long Life Parapet Coat. Looking ahead, the focus is on restoring margins through calibrated price increases and cost-saving initiatives. The management expressed confidence in achieving the guided EBITDA margin range of 15% to 17% in the coming quarters, with Q3 and Q4 expected to be stronger.
Q&A Highlights
During the Q&A session, the management addressed concerns regarding inventory and receivables buildup, attributing it to strong sales during the festive season and peak raw material prices. They clarified that the price hikes taken are gradually being passed on, and the company is working towards recovering gross margins, with an aim to recover approximately 90% of the desired increase by the end of November. The strategy for market share growth was also discussed, with a focus on consolidating position in existing segments rather than diversifying into inorganic plants. The company aims to maintain its current market share in a competitive landscape.
Source: BSE
