Berger Paints Q4 profit jumps 28% on margin expansion, volume surge

Berger Paints India reported a sharp 28% jump in consolidated net profit for the fourth quarter of FY26, driven by strong volume growth, margin expansion to multi-year highs and an insurance claim recognition that gave an additional leg-up to the bottomline.

Consolidated net profit for Q4 FY26 came in at ₹335 crore, up from ₹263 crore in the same quarter last year. Revenue from operations rose 6.1% to ₹2,868 crore from ₹2,704 crore. EBITDA grew 12.6% to ₹481.67 crore, with operating margins expanding to 16.79% from 15.82% — the highest in ten quarters.

Volume outpaces value

On the standalone business, volume growth came in at a robust 11.8%, even as value growth lagged at 6.7% — a gap the company attributed to a higher contribution from lower-ASP products such as construction chemicals, textures and tile adhesives, as well as the lingering effect of economy segment price cuts. Gross margins hit a 12-quarter high, aided by a favourable product mix, muted raw material prices and the partial benefit from withdrawal of anti-dumping duty on titanium dioxide.

Decorative paints delivered double-digit volume growth, with new premium launches Kolor Plus and Kolor Plus Glow gaining traction. The company's retail footprint expanded to approximately 1,900 stores with over 700 additions during the full year, while tinting machine installations crossed 10,000 units — with 2,600-plus deployments in Q4 alone. Construction chemicals and waterproofing continued to outperform, while wood coatings posted robust double-digit growth. Automotive coatings benefited from sustained traction in the two-wheeler segment, lower financing costs and GST cuts.

Full year disappoints

The full-year picture was more subdued. For FY26, consolidated revenue grew just 2.9% to ₹11,880 crore, while consolidated PAT fell 4.6% to ₹1,128 crore from ₹1,183 crore in FY25. The company's international subsidiaries were a drag — BJN Nepal faced an election-induced slowdown, and STP Ltd and SBL Specialty Coatings were both hit by scale constraints and high raw material prices.

The Q4 standalone PAT also got a fillip from the reversal of a ₹36.81 crore exceptional loss — relating to a warehouse fire at its Barasat facility in West Bengal in Q1 FY26 — after the company recognised an insurance claim receivable against that loss during the quarter.

What lies ahead

The company flagged that competitive intensity is expected to remain elevated. Growth is seen being led by construction chemicals, waterproofing and wood coatings, with staggered price hikes from March onwards aimed at protecting gross margins. West Asian disturbances, crude price volatility, rupee depreciation and potential inflationary pressures were cited as key monitorables.

The board recommended a dividend of ₹4 per share (400% on face value of ₹1) for FY26, subject to shareholder approval. It also reappointed Abhijit Roy as Managing Director and CEO for a further four years from July 1, 2027 to June 30, 2031.

Shares of Berger Paints ended 0.98% lower at ₹489 apiece on the NSE on Tuesday. The stock has slipped over 9% in the past year, sharply underperforming the Nifty 500 index, which has declined nearly 1% during the same period.