Earnings Outlook
Berger Paints to report mild growth in PAT, revenue
This story was originally published at 19:49 IST on 4 August 2025
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By Udita S. Jaiswal
MUMBAI – Berger Paints India Ltd. is expected to report moderate growth in its net sales and net profit for the June quarter due to a slowdown in urban demand and heightened competition. Profit margins are expected to remain flat due to the entry of Birla Opus in the decorative paints segment and the imposition of anti-dumping duty on rutile, which will increase the cost of titanium dioxide, widely used in paints and coatings.
Berger Paint's consolidated net profit for the June quarter is estimated at INR 3.63 billion, up 3% on year and 39% on quarter, according to the average of estimates from eight brokerages. The highest estimate for net profit is INR 4.14 billion by Nomura Equity Research and the lowest is INR 3.11 billion by Dolat Capital Market Pvt. Ltd.
The company's consolidated net sales for the latest quarter are estimated at INR 32.57 billion, up 5% on year and 20% on quarter, according to the average of estimates from eight brokerages. The highest estimate for net sales is INR 33.38 billion by Nirmal Bang Equities Pvt. Ltd. and the lowest estimate is INR 30.35 billion by Dolat Capital.
The company's consolidated earnings before interest, tax, depreciation, and amortization is expected to be INR 5.63 billion, according to the average of the estimates given by brokerage firms. The highest estimate for EBITDA is INR 6 billion by Nomura Equity and the lowest is INR 5 billion by Dolat Capital. The company is expected to report an EBITDA margin in the range of 15-17% in 2025-26 (Apr-Mar). While crude oil prices have corrected, the anti-dumping duty on rutile will increase costs by INR 150 million in FY26, analysts said.
The company's volume-value gap is expected to narrow down in the June quarter. This is driven by operational efficiencies and a better product mix, Nuvama Wealth Management Ltd. said. The company's gross margin is expected to improve to 43.1%, up 322 bps on year, due to better performance of new products. Low staff cost and other expenditure in base are expected to push up the EBITDA margin to 17.1%, up 20 bps on year, according to the brokerage.
Monday, shares of Berger Paints closed at INR 570 on the National Stock Exchange, up marginally. The stock is up nearly 3% since the company announced its March quarter earnings.
Berger Paints will announce its earnings for the June quarter Tuesday. Of the 12 brokerage estimates on the company available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 629 while two have a "hold" recommendation and four have a "sell" recommendation on the stock.
Following are the June quarter earnings estimates for Berger Paints India Ltd., in INR million, based on reports from eight brokerages in the descending order of estimate of net profit:
Brokerage | Net Sales | Net Profit | EBITDA |
Nomura Equity Research | 33,007.00 | 4,148.00 | 6,078.00 |
Systematix Shares and Stocks (India) Ltd. | 33,339.00 | 3,847.00 | 5,901.00 |
HDFC Securities Ltd. | 32,800.00 | 3,800.00 | 5,700.00 |
Kotak Institutional Equities | 32,765.00 | 3,770.00 | 5,747.00 |
Nuvama Wealth Management Ltd. | 32,765.00 | 3,647.00 | 5,603.00 |
Nirmal Bang Equities Pvt Ltd. | 33,386.00 | 3,381.00 | 5,409.00 |
Anand Rathi Share and Stock Brokers Ltd. | 32,147.00 | 3,351.00 | N.A |
Dolat Capital Market Pvt Ltd. | 30,357.00 | 3,113.00 | 5,017.00 |
Average | 32,570.75 | 3,632.13 | 5,636.43 |
End
Edited by Avishek Dutta
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