Berger Paints reported an 11 per cent YoY profit decline in the first quarter of FY26. The company posted a net profit of Rs 315.04 crore in Q1 FY26, while its net profit in Q1FY25 stood at Rs 354.03 crore.
Furthermore, Berger Paints reported a revenue of Rs 3,200 crore in Q1FY26. The company’s revenue grew by 3.5 per cent YoY in Q1FY26, as its revenue in the corresponding quarter of the preceding fiscal year stood at Rs 3,091 crore.
Berger Paints posted a 1.1 per cent YoY EBITDA growth in the quarter. The company’s EBITDA in Q1FY26 stood at Rs 528 crore against an EBITDA of Rs 522 crore in Q1FY25.
Why the profitability decline?
The decorative paints space in India is going through an increasing consolidation and competition as the new entrants, Birla Opus and JSW Paints, gear up for a higher market share. The increasing competition is reflected in the quarterly performance of legacy paint companies as profit falls and revenue growth remains stagnant.
Earlier on August 4, Kansai Nerolac, a close competitor of Berger Paints with a similar market share, also posted a 4.3 per cent YoY profit decline in Q1.
Berger Paints said that an early monsoon also impacted the revenue and profit growth of the company. Kansai Nerolac also held a similar position on their Q1 results.
Berger Paints also stated that it faced an exceptional loss of Rs 36 crore in the quarter due to a fire incident at its distribution facility in Kolkata.