Berger Paints (India) reported a 28.51% year-on-year (YoY) increase in its consolidated net profit at Rs 404.34 crore in Q1FY27, up from Rs 314.63 crore reported in Q1FY26.
Revenue from operations, however, increased 11.97% YoY to Rs 3,583.75 crore, compared with Rs 3,200.76 crore in Q1FY26.
On a sequential basis, Berger Paints’ net profit rises 20.78%, while revenue fell 24.96% quarter-on-quarter (QoQ).
EBITDA (excluding other income) for the quarter stood at Rs 607.4 crores as against Rs 528.4 crores in Q1FY26, representing an increase of 15%.
Price hikes boost value growth, West Asia conflict weighs on raw material costs
The company said both its decorative and automotive businesses led growth during the quarter. Demand continued to improve from the previous quarter, while price hikes helped support value growth.
“The value growth outpaced volume growth on the back of the price increases with the full benefit to accrue going forward. Our performance this quarter was driven by strong growths both in Automotive and Decorative segments,” Berger Paints said in its Q1 press release.
The company said the West Asia conflict disrupted the availability of crude and pushed up prices of crude-based raw materials during the quarter. This led to some pressure on gross margins.
However, better cost control and operational efficiencies helped Berger Paints maintain its operating profit margin slightly above its guidance range.
Berger Paints sees demand recovery continue; flags crude, forex risks
Abhijit Roy, Managing Director & CEO of Berger Paints India, said, “The progressive demand improvement seen in the previous quarter continued into the first quarter of the year, enabling a standalone value growth of 12.7% for the quarter. The value growth outpaced volume growth on the back of the price increases, with the full benefit to accrue going forward.”
He added, “It was a positive start to the new year despite the unsettled environment resulting from the conflict in West Asia, which disrupted crude availability and increased prices of crude-based raw materials. This inflation led to some moderation in our gross margins. However, prudent financial control and improved efficiencies helped us deliver an operating profit margin slightly ahead of our guidance range and a strong PAT growth.”
Roy said improving domestic demand and a better-than-expected monsoon are encouraging signs for the coming months. However, he cautioned that forex volatility, geopolitical uncertainty, supply disruptions and raw material inflation remain key near-term risks for margins.