The stock rose over 3% intraday trade after the earnings announcement as investors welcomed the resilient operating performance and the company’s constructive outlook.
Consolidated net profit increased 21% year-on-year to ₹404.3 crore, while revenue from operations grew 12% to ₹3,583.7 crore, reflecting broad-based demand across key segments.
EBITDA rose 15% to ₹607.4 crore, with the operating margin holding steady at 17%, despite inflationary pressures on crude-linked raw materials.
Managing Director and CEO Abhijit Roy said the gradual demand recovery seen in the previous quarter continued into the June quarter, helping the company deliver 12.7% standalone value growth. He added that pricing actions supported growth during the quarter, with the full benefit of recent price increases expected to flow through in the coming months.
The company said decorative paints and automotive coatings remained the key growth drivers, while focus categories such as waterproofing, construction chemicals and wood coatings continued to post healthy growth. Berger also highlighted strong traction from recently launched premium products, alongside continued network expansion in underpenetrated urban markets.
Management acknowledged that the conflict in West Asia disrupted crude supplies and pushed up prices of petroleum-based raw materials, putting pressure on gross margins. However, tighter cost controls and operational efficiencies helped the company maintain profitability within its guided range.
Looking ahead, Berger expects the gradual improvement in domestic demand and a better-than-anticipated monsoon to support business momentum. The company also expects industrial coatings to benefit from price hikes implemented towards the end of the June quarter, with the gains likely to become more visible in the September quarter.
At the same time, Berger cautioned that foreign exchange volatility, geopolitical uncertainty and raw material inflation remain key near-term risks that could influence margins.
Berger Paints is India’s second-largest paint maker, with a diversified portfolio spanning decorative paints, industrial coatings, waterproofing solutions, construction chemicals and automotive finishes.
