Berger Paints Reports 27% Profit Surge in Q4 Driven by Strong Demand
Berger Paints Q4 profit jumps 27% to Rs 335 crore on strong demand and margins
The Economic TimesImage: The Economic Times
Berger Paints India reported a 27% year-on-year increase in consolidated net profit to ₹335.3 crore for Q4, fueled by robust volume growth and improved gross margins. Despite challenges from external factors like crude volatility and currency depreciation, the company remains optimistic about future growth in construction chemicals and other segments.
- 01Q4 consolidated net profit rose by 27% to ₹335.3 crore.
- 02Revenue from operations increased by 6.1% to ₹2,868 crore.
- 03Gross margins reached 42.3%, the highest in three years.
- 04Full fiscal 2026 net profit decreased by 4.6% to ₹1,128.8 crore.
- 05The board recommended a dividend of ₹4 per share.
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Berger Paints India reported a 27% increase in consolidated net profit to ₹335.3 crore for the fourth quarter of the fiscal year, driven by strong demand and improved gross margins. The company's revenue from operations rose 6.1% to ₹2,868 crore, with earnings before interest, tax, depreciation, and amortisation (Ebitda) increasing 12.6% to ₹481.7 crore. Managing Director Abhijit Roy noted a healthy volume growth of 11.8% during this period, supported by a favorable product mix and declining raw material prices. Gross margins improved to 42.3%, the highest in three years, aided by a better mix and the withdrawal of anti-dumping duties on titanium dioxide. However, for the full fiscal year 2026, the company reported a 4.6% decline in net profit to ₹1,128.8 crore, impacted by new labor codes and a warehouse fire in Barasat, West Bengal. Looking ahead, Berger Paints anticipates that recent price hikes will help maintain gross margins amid rising raw material costs, with growth expected in segments like construction chemicals and waterproofing.
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The profit growth could lead to increased dividends for shareholders and potential reinvestment in expansion, benefiting employees and the local economy.
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