Berger Paints Q3: Volumes jump over 8%, profit declines as scale, brand spends weigh

Berger Paints India Ltd reported a mixed performance for the December quarter, with profitability under pressure despite healthy volume growth and improving demand conditions.

Net profit declined 8.1% YoY to ₹271.1 crore, while revenue was largely flat at ₹2,984 crore, up a marginal 0.3% YoY. EBITDA stood at ₹471 crore, nearly unchanged from last year, with margins at 15.78%, broadly in line with guidance.

Shares of the company closed 1.3% lower at ₹473.85 on the NSE post the results.

Volumes strong, margins resilient

Standalone volumes grew a robust 8.5% during the quarter, supported by a gradual recovery in demand after a weak October impacted by extended monsoons and a shortened festive season. Gross margins touched their highest level in the past 15 quarters, aided by input cost moderation.

However, EBITDA margin remained under pressure due to negative operating leverage and sustained investments in brand building, according to management.

Segmental trends and outlook

Key focus segments — waterproofing, construction chemicals and wood coatings — continued to deliver healthy growth. Automotive coatings registered mid-single-digit growth, while protective and general industrial coatings also saw positive momentum.

Commenting on the outlook, Abhijit Roy, Managing Director & CEO, said demand indicators have been improving sequentially, with month-on-month upticks across segments. He added that these trends, along with margin stability within guidance, are expected to coalesce into better performance in the coming months, though near-term risks from forex volatility and geopolitical uncertainty remain.

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The company reaffirmed its focus on network expansion, innovation and brand building, while also highlighting strong ESG performance, with Berger Paints scoring 64 on NSE’s ESG parameters, ahead of industry peers.