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Berger Paints Profit Plunge: 24% Drop Amid Muted Demand, Monsoon Woes

Berger Paints just reported a significant 24% drop in their quarterly profits. The company managed only slight revenue growth despite challenging market conditions. Extended monsoon season really hurt their exterior paint sales across multiple regions. Their CEO confirmed that higher brand-building expenses and unfavorable product mix also contributed to the profit decline.

Key Points: Berger Paints Q2 Profit Falls 24 Percent to Rs 206 Crore

  • Consolidated net profit fell 24% to Rs 206 crore from Rs 270 crore last year
  • Revenue saw marginal growth of 1.9% reaching Rs 2,827 crore
  • Operating margin declined to 12.4% from 15.6% in previous fiscal
  • Extended monsoon season and higher brand spending impacted profitability
2 min read

Berger Paints' Q2 profit falls 24 pc to Rs 206 crore

Berger Paints reports 24% profit drop to Rs 206 crore in Q2 FY26 despite slight revenue growth, impacted by extended monsoon and higher brand spending.

"The company faced muted demand due to an extended monsoon season that affected sales across several markets - Abhijit Roy, MD & CEO"

Mumbai, Nov 4

Berger Paints India Limited on Tuesday reported a 23.6 per cent year-on-year (YoY) drop in its consolidated net profit to Rs 206 crore for the quarter ended September 30 (Q2 FY26).

The company had posted a profit of Rs 270 crore in the same quarter last financial year (Q2 FY25), according to its stock exchange filing.

Revenue from operations rose slightly by 1.9 per cent to Rs 2,827 crore, compared to Rs 2,774 crore a year ago.

However, profitability took a hit as earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 19 per cent to Rs 352 crore from Rs 434 crore in the previous financial year.

The company's operating margin also slipped to 12.4 per cent from 15.6 per cent last fiscal.

On a standalone basis, Berger Paints reported revenue of Rs 2,458.5 crore, up just 1.1 per cent from Rs 2,430.7 crore in the same quarter of the previous financial year.

Standalone EBITDA declined 18.8 per cent to Rs 311.2 crore, while net profit dropped 23 per cent to Rs 176.3 crore from Rs 229 crore last fiscal.

For the first half of the financial year ending September 30, the company's consolidated revenue grew 2.8 per cent to Rs 6,028.3 crore.

However, EBITDA fell 7.9 per cent to Rs 880.7 crore, and net profit dropped 16.4 per cent to Rs 521.4 crore.

On a standalone basis, half-yearly revenue increased 1.6 per cent to Rs 5,321.1 crore, while EBITDA declined 6.5 per cent to Rs 810.7 crore.

Net profit for the same period stood at Rs 470 crore, down 12.1 per cent from Rs 534.5 crore a year ago.

Abhijit Roy, Managing Director and CEO of Berger Paints India, said the company faced muted demand due to an extended monsoon season that affected sales across several markets.

Despite this, Berger managed to achieve high single-digit volume growth and slight revenue growth.

Roy added that profitability was impacted by lower sales of exterior paints, an unfavourable product mix, and higher spending on brand-building activities during the quarter.

Shares of Berger Paints India ended 0.58 per cent lower at Rs 536 apiece on the BSE on Tuesday.

- IANS

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Reader Comments

P
Priya S
As someone who works in the construction industry, I can confirm monsoon was brutal this year. Many projects got delayed, affecting paint sales across all brands. Berger is still a solid company though.
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Sarah B
The management should focus more on cost control. When revenue is growing slightly but profits are falling so much, it indicates operational inefficiencies. Hope they address this in the next quarter.
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Arjun K
Just painted my house last month with Berger products! Quality is excellent but yes, the monsoon did delay our painting work by almost 2 months. Weather plays such a big role in this business.
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Michael C
Interesting to see that despite the profit drop, they managed volume growth. The Diwali season should help recover some ground. Indian paint industry has strong long-term prospects.
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Kavya N
The margin compression from 15.6% to 12.4% is quite significant. Hope the brand-building expenses pay off in the long run. Berger has always been my preferred paint brand for home renovation projects.

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