News ArticleBerger Paints India Achieves 11.9% Standalone Revenue Growth in Q2 FY27 Amid Raw Material Cost Pressures
Consolidated PBDIT up 5.2%, Decorative business posts near double-digit value growth; margins affected by inflation and campaign investments
Berger Paints India Limited posted an 11.9% standalone revenue increase for Q2 FY27, driven by decorative and industrial business growth. PBDIT rose 5.2% consolidated but margins were impacted by raw material inflation and high-cost inventory liquidation. The company launched the 'Rang Bana Rahe' campaign with increased advertising spend during the quarter.
Berger Paints India Limited
Investor Presentation
Berger Paints India Limited recorded an 11.9% standalone revenue increase in the quarter ended 30 September 2026, with consolidated PBDIT rising 5.2%. The Decorative segment showed near double-digit value growth, while margins were pressured by raw material inflation and pricing delays.
The company reported consolidated revenue growth of 13.2% and half-year growth of approximately 12.3% standalone and 12.5% consolidated. Decorative paints value growth was boosted by an approximate 8% price increase, while industrial business volumes and values also grew robustly despite gross margin declines year-over-year.
Gross margins contracted due to double-digit raw material inflation, liquidation of high-cost inventory, and delayed price increases in the industrial segment. PBDIT margin compression was limited, though impacted by ~₹22 crore spent on the new 'Rang Bana Rahe' brand campaign, which aims to strengthen consumer engagement.
The standalone PBDIT margin was around 10.8% in Q2 FY27, slightly lower compared to previous periods. Cash position remains positive on a consolidated basis, supporting stability amid cost pressures.
Among subsidiaries and joint ventures, Bolix S.A. and Berger Becker JV showed strong profitability growth, while others faced margin pressures from rising input costs.
Berger Paints expanded its retail store network to over 2,000 and installed 4,800 tinting machines, supporting distribution and customer reach. Product innovation continued with offerings in waterproofing, décor, and protection sectors, including the Kool range targeting summer heat resistance.
Highlights
- Standalone total income from operations for Q2 FY27 rose 11.9% to ₹2,750.06 crore.
- Consolidated PBDIT grew 5.2% to ₹370.67 crore in Q2 FY27 despite margin pressures.
- Decorative paints segment value growth nearly reached double digits, driven by ~8% price hikes.
- Gross margins were impacted by double-digit raw material inflation and liquidation of high-cost stock.
- ~₹22 crore invested in the Rang Bana Rahe advertising campaign in Q2 FY27 affected margins.
- Expanded retail store network to over 2,000 stores with 4,800 tinting machines as of H1 FY27.
Key Data Snapshot
What happened
- Berger Paints India Limited reported 11.9% standalone revenue growth for Q2 FY27 to ₹2,750.06 crore.
- Consolidated revenues grew 13.2% to ₹3,200.37 crore, with PBDIT rising 5.2% to ₹370.67 crore.
- Decorative business posted near double-digit value growth, driven by approximately 8% price increases.
- Margins were affected by double-digit raw material inflation, liquidation of high-cost inventory, and delayed price increases in the industrial segment.
- Advertising and promotion expenses rose due to an approximately ₹22 crore investment in the new 'Rang Bana Rahe' brand campaign.
Key details
- Standalone PBDIT margin for Q2 FY27 was 10.8%, reflecting margin pressure from rising input costs.
- Gross margins declined despite sales growth due to raw material cost inflation and inventory factors.
- Decorative segment benefited from price increases partially offsetting inflation impacts.
- Industrial business delivered robust volume and value growth but experienced a gross margin decline year-over-year.
- Company maintained a cash-positive consolidated position during the quarter.
Operational performance
- Retail store network expanded to over 2,000 stores by H1 FY27.
- Tinting machines increased to over 4,800 as of H1 FY27, boosting customer reach.
- Product innovation featured waterproofing, décor, and protection products alongside Kool paint range targeting summer heat resistance.
- Industrial coatings segments such as automotive coatings and protective coatings showed stable or strong growth.
- Subsidiaries including Bolix S.A. and Berger Becker JV contributed positively to consolidated profits despite some margin pressures across the group.
Strategic context
- The Rang Bana Rahe campaign was launched in Q2 FY27 to enhance brand visibility and consumer engagement.
- The company invested significantly in advertising to support the brand campaign during the quarter.
- Pricing actions aimed at recovering inflation costs unevenly impacted margins due to timing delays, especially in the industrial segment.
- Focus on calibrated price increases and cost optimization continues to manage inflationary challenges.
Highlights
- Standalone total income from operations for Q2 FY27 rose 11.9% to ₹2,750.06 crore.
- Consolidated PBDIT grew 5.2% to ₹370.67 crore in Q2 FY27 despite margin pressures.
- Decorative paints segment value growth nearly reached double digits, driven by ~8% price hikes.
- Gross margins were impacted by double-digit raw material inflation and liquidation of high-cost stock.
- ~₹22 crore invested in the Rang Bana Rahe advertising campaign in Q2 FY27 affected margins.
- Expanded retail store network to over 2,000 stores with 4,800 tinting machines as of H1 FY27.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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