Q2 2026 Berger Paints India Ltd Earnings Call Transcript
Key Points
- Berger Paints India Ltd (BOM:509480) achieved a high single-digit volume growth of 8.8% despite challenging weather conditions.
- The company continues to expand its dealer network and urban store presence, now exceeding 1,600 outlets.
- Innovative product launches such as Color Plus and Luxol Metallic are performing well in the market.
- The company maintains a stable gross margin range of 39-41%, despite adverse conditions.
- Berger Paints India Ltd (BOM:509480) expects demand revival post-Diwali, supported by improved weather and pent-up demand.
- The company experienced a marginal dip in gross margin by 0.8% due to lower sales of high-value products.
- Operating profit margin shrunk significantly to 12.7%, impacted by subdued value growth and higher brand-building expenses.
- Extended monsoon conditions led to muted value growth in the decorative business, affecting premium markets.
- Increased expenses in urban markets did not yield expected results due to adverse weather conditions.
- Forex volatility and tariff changes pose near-term uncertainties for the company.
I would like to welcome all to the Berger Paints India's Limited Q2 FY26 results conference call. I thank Berger Paints' Management for allowing us to host. We have with us today Mr. Abhijit Roy, Managing Director and CEO; Mr. Kaushik Ghosh, CFO; Mr. Sujyoti Mukherjee, Vice President, Finance and Accounts; and Sayantan Sarkar, GM, Finance and Accounts.
I shall now hand over the call to the management for opening remarks, post which we will proceed with the Q&A session. Over to you, sir.
Thank you, Nitin. Good afternoon to all of you. We start the second quarter results analysis. It was a tough quarter due to excessive rains. We had a high single-digit volume growth with low value growth. Growth was impacted by inclement weather and heavy monsoon alongside sustained competitive intensity. Marginal dip in gross margin, the gross margin dipped by about 0.8% due to lower sale of exterior
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