Berger Paints (I) Limited — PPTs, 04-11-2025: Investor Presentation

Berger Paints navigated Q2 FY26 with high single-digit volume growth, yet consolidated value growth remained muted at 1.9% (₹2,827.49 Cr). Extended monsoons and intense competition impacted sales, leading to a shift towards economy segments. Consolidated PBDIT dropped 18.9% to ₹352.25 Cr, and PAT fell 23.5% to ₹206.38 Cr, primarily due to lower operating leverage and increased brand spending. However, Construction Chemicals, Wood Coatings, and their Automotive Coatings JV delivered strong performances.

The company is strategically expanding its dealer network and urban store presence, now exceeding 1,600 outlets, while its tinting machine network aims for 10,000+ by FY26. A new SBL Specialty Coatings factory also commenced operations in Basauli, Punjab, funded by internal accruals.

Management anticipates a demand rebound post-Diwali, driven by better weather and pent-up demand. They expect gross margins to improve short-term, thanks to stable raw material costs and a favorable product mix, continuing investments in brand and retail to capture growth.