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Informist, Thursday, Feb. 5, 2026

By Shumaila Firoz

MUMBAI – Berger Paints India Ltd. reported a year-on-year decline in its consolidated net profit for the December quarter, weighed down by a one-time labour code implementation cost. The company's expenses grew at a faster pace than its revenue. Both net profit and revenue of the company missed the Street's estimate by a small margin.

Berger Paints' consolidated net profit for the December quarter was reported at INR 2.71 billion, down over 8% on year. Analysts had estimated net profit at INR 2.79 billion. The company's net sales for the December quarter was reported at INR 29.84 billion, up 0.3% on year. Analysts had estimated the company's net sales for the reporting quarter at INR 30.39 billion. Sequentially, the bottom line rose over 31%, while the top line rose nearly 6%.

The company incurred a one-time cost of INR 533.1 million in its consolidated financial results for the December quarter on account of cost related to implemetation of the new labour codes, while the one-time standalone cost was INR 499.9 million.

The company's total expenses for the reporting quarter was at INR 26.27 billion, up nearly 1% on year from INR 26.08 billion in the year-ago quarter. The expenses were driven mainly by employee benefits expense which was up nearly 14% on year.

Demand outlook will continue to be closely monitored with early sign of gradual improvement. Focus will remain on revenue growth with sustained gross margins remaining the key objective. The company's profit before depreciation, interest, and tax margins are expected to remain within the guided range, it said in its investor presentation.

For the company to capture its potential demand improvement, it will continue its investments in branding, distribution expansion, and urban initiatives, the company said in its investor presentation. Meanwhile, geopolitical uncertainty, forex volatility, and evolving tariff dynamics may pose near- to medium-term volatility.

The company has reported strong volume growth of 8.5% in the December quarter aided by a gradual improvement in demand conditions as the quarter progressed, the company said in its notes of its Q3 financial results.

Gross margins improved to their highest level in the past 15 quarters during the quarter, while EBITDA margin remained within the guided range, the company said in its Oct-Dec earnings note. Berger Paints noted that EBITDA margins were impacted by a negative scale effect and continued investments in brand building but added that it expects these pressures to ease in the coming months.  

The company in its December quarter financial result said it continued to register healthy growth in key focus segments such as waterproofing, construction chemicals and wood coatings, supported by network expansion and urban initiatives, which delivered positive month-on-month traction.

The company added that its joint ventures, including BNPA and Berger Becker, reported robust double-digit growth in both its revenue and net profit for the quarter.

For the nine months ended Decmeber, Berger Paints' consolidated revenue from operations was at INR 90.12 billion, up 2% on year, while net profit was reported at INR 7.93 billion, down nearly 14% on year.

Thursday, shares of Berger Paints ended nearly 2% down at INR 472.30 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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