Berger Paints Q1 FY27 results: Net profit rises 28% YoY, gross margin moderated amid raw material inflation

The company’s revenue from operations grew 12% in the April-June period to ₹3,584 crore as compared to ₹3,201 crore on a year-on-year (YoY) basis.

On the operational front, Berger Paints’ earnings before interest, taxes, depreciation & amortisation (EBITDA) for the quarter surged 15% to ₹607 crore in Q1 FY27 from ₹528 crore in the corresponding quarter for the previous fiscal year.

The EBITDA margin for the quarter expanded marginally to 16.94% in the reporting quarter in contrast to 16.49% YoY. Berger Paints in an investors’ presentation said that the gross margin moderated YoY due to raw material inflation, with the full-quarter benefit of recent price increases yet to be realised across industrial category.

Despite the West Asia crisis, the company said it has registered double digit growth both in revenue and operating profit. The decorative and automotive segments led the growth for the quarter.

The paints company’s decorative business outperformed with nearly mid-teen value growth. Its protective, GI and powder coatings recorded relatively lower growth. The decorative performance was supported by calibrated price increases implemented through the quarter, Berger Paints said.

Furthermore, the decorative segment reported nearly 20% growth in operating profit, with price increases implemented only for part of the quarter.

The firm’s volume growth was in high single digits while value growth in double digits.

“The progressive demand improvement seen in the previous quarter continued into the 1st quarter of the year which enabled the achievement of a standalone value growth of12.7% for the quarter. The value growth outpaced volume growth on the back of the price increases with the full benefit to accrue going forward. Our performance this quarter was driven by strong growths both in Automotive and Decorative segments,” said Abhijit Roy, Managing Director and CEO of Berger Paints India.

“Forex volatility, geopolitical uncertainty continue to pose near-term margin risks on both supply disruptions and raw material inflation,” Roy added.

Outlook for FY27

Berger Paints expects double-digit revenue growth to sustain, supported by the full-quarter impact of price increases in Q2, along with festive demand and continued distribution expansion. Operating margins are expected to remain within the guided range, while a well-progressing monsoon may support rural sentiment.

The company indicated that market competitiveness is expected to remain elevated. It also plans to continue investments in brands, innovation and retail activation to strengthen its consumer base, while closely monitoring macro factors such as crude oil prices, currency movements and geopolitical developments.

On Wednesday, Berger Paints shares settled at ₹545.20 apiece on the National Stock Exchange, gaining 2.91%. The earnings, however, came after the market hours.