Berger Paints shares soar over 9% after Q4 net profit jumps 27% to Rs 335 crore

Shares of Berger Paints India rallied as much as 9% to their day’s high of Rs 533 on the BSE on Wednesday after it reported a more than 27% year-on-year rise in consolidated net profit for the fourth quarter of FY26 at Rs 335.3 crore, supported by strong volume growth and improved gross margins.

The company, however, said developments in West Asia, volatility in crude-linked derivatives, rupee depreciation and supply-side disruptions remain key factors to watch, given the inflationary pressures they could create.

India’s second-largest paint maker posted a 6.1% increase in consolidated revenue from operations to Rs 2,868 crore during the March quarter, while EBITDA rose 12.6% year-on-year to Rs 481.7 crore.

Managing Director Abhijit Roy said the gradual improvement in demand witnessed in the previous quarter continued through the fourth quarter, helping the company achieve healthy volume growth of 11.8%. He added that the performance was aided by a better product mix and softer raw material prices.

Gross margin for the quarter stood at 42.3%, the highest level seen in the last three financial years. The company said margins improved both sequentially and year-on-year due to favourable mix enrichment, lower impact from price cuts in the economy segment and partial benefits from the withdrawal of anti-dumping duty on titanium dioxide.

For the full financial year FY26, Berger Paints reported a consolidated net profit of Rs 1,128.8 crore, down 4.6% from the previous year. Revenue from operations for the year rose 2.9% to Rs 11,880.3 crore, while EBITDA declined 1.2% to Rs 1,833.3 crore.
The company said annual profitability was impacted by the implementation of newly notified labour codes as well as a one-time loss arising from a warehouse fire in Barasat, West Bengal.On the outlook, 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 efforts should help maintain operating margins within the guided range. Berger Paints added that although competition is likely to remain intense, growth is expected to be driven by demand in construction chemicals, waterproofing, wood coatings and upcoming product launches.

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