Berger Paints India Ltd (BOM:509480)

Q1 2027 Berger Paints India Ltd Earnings Call Transcript

Aug 5, 2026 / 11:30 AM GMT

Release Date Price: ₹545.45 (+2.18%)

Transcript

Key Points

Positve

Berger Paints India Ltd (BOM:509480) reported strong standalone volume growth of 8.4% and value growth of 12.7%, with decorative business outperforming at 13.5% value growth and nearly 20% operating profit growth.
Consolidated PAT grew by 28.6% year-on-year, driven by robust performance in the decorative segment and improved profitability in subsidiaries like STP and Bolix.
The company's operating margin expanded by 40 basis points year-on-year, with standalone PBDIT margin at a strong 17.4%, within the guided range of 15-17%.
New product launches, such as Color Plus interior emulsion and Luxol Metallics, gained strong traction in the premium segment, while construction chemicals and waterproofing delivered robust growth.
Management expects Q2 FY27 to be better than Q1, with full impact of price increases (7.5-8.5%) and favorable monsoon conditions supporting double-digit revenue growth and margin expansion.
The company's cash surplus grew to INR 1,424 crore, providing a strong balance sheet for future investments, including new factories in Panagar and Odisha.

Negative

Gross margin moderated to 39.3% due to delayed and partial pass-through of input cost increases in the industrial business, which could pressure profitability if raw material costs rise further.
Protective, GI, and powder coatings divisions recorded relatively lower growth due to price increases taken only at the end of the quarter, impacting overall performance.
Consolidated revenue growth of 12% was slightly lower than standalone due to muted performance in wholly-owned subsidiaries Bolix (seasonal weakness) and STP (Jamshedpur plant disruption).
UK operations remained subdued, with management focusing on corrective measures that have reduced top-line growth but improved profitability, indicating ongoing challenges in that market.
Competitive intensity remains elevated, with challenger brands offering higher rebates to large dealers and continuing free material schemes, which could pressure market share and pricing power.
The company faces uncertainty from volatile crude oil prices and geopolitical developments, which could lead to price cuts in the second half if raw material costs decline, potentially impacting margins.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

BRGR.NS - Berger Paints India Ltd
Q1 2027 Berger Paints India Ltd Earnings Call
Aug 05, 2026 / 11:30AM GMT

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Presentation
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Unidentified_1 [1]
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Abhijit, sir, can we start?

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Unidentified_2 [2]
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Yes, we can. Go ahead.

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Unidentified_1 [3]
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Hi, good evening everyone. This is Movit Dudeja from UK Global. I would like to welcome all to the Berzer Paints India 102 FY27 result conference call. I thank Berzer Paints Management for allowing us to host. We have with us today Mr. Abhijit Roy, Managing Director and CEO. Mr

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