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Informist, Monday, Nov. 3, 2025

By Udita S. Jaiwal

MUMBAI – Berger Paints India Ltd. is likely to see soft growth in the September quarter due to heavy rainfall during the monsoon season and mounting competition in the paint industry. Painting normally takes a back seat during the monsoon season, which reduces demand in the September quarter, analysts said. However, the early onset of the festival season and gradual urban recovery are likely to be the saving grace, they said. 

Berger Paints is expected to report a net profit of INR 2.71 billion in the September quarter, up 1% on year, according to the average of estimates from six brokerages. The estimates for net profit range from INR 2.59 billion by Anand Rathi Share and Stock Brokers Ltd. to INR 2.84 billion by Nirmal Bang Equities Pvt. Ltd.

The company's net sales are expected to be INR 28.70 billion during the quarter, up over 3% on year, according to the average of the estimates. The lowest estimate for net sales is INR 28.16 billion by Systematix Shares and Stocks (India) Ltd. and the highest is INR 29.13 billion by Anand Rathi.

"We expect growth in subsidiaries to aid topline growth akin to the last two quarters (adding about 130 bps to the consolidated growth rate)," Kotak Securities Ltd. said. 

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 4.45 billion in the September quarter, according to the average estimates from five brokerages. The company's "margin would have expanded on softer crude oil prices (around 40-50% of input costs), though gains may have been offset by keen competition following Birla Opus' entry," according to Anand Rathi.

Despite intense competition in the September quarter, Berger Paints is expected to outperform Asian Paints, the market leader, in the domestic decorative paints, according to the analysts. "We expect BRGR (Berger) to clock 5% YoY (year on year) volume growth in the domestic decorative paint business (6-yr CAGR: about 10.6%)," Nirmal Bang said.

Of the 12 brokerage reports on the company available with Informist, six have a "buy" rating on the stock, with the average target price of INR 635, two have a "hold" rating and four have a "sell" rating on the stock.

Monday, the company's shares ended 0.6% lower at INR 539 on the National Stock Exchange. The stock is down nearly 5% since the company announced its June quarter earnings. Berger Paints' net profit in the June quarter was INR 3.15 billion, down 11% on year, and its net sales were INR 32.01 billion, up 3.6% on year. The company will announce its September quarter earnings on Tuesday.

Following are the Jul-Sept earnings estimates for Berger Paints India Ltd. from six brokerage firms in descending order of the estimate of net profit in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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