Berger Paints Reports 4.5% Decline in FY26 Profit Amid Concerns Over Softening Demand Due to Inflation

Berger Paints India Expects Softening Demand Amid Rising Input Costs

Berger Paints India Ltd, the country's second-largest paintmaker, is anticipating a decline in demand due to recent price hikes intended to offset the increase in input costs stemming from the ongoing West Asia conflict. According to the company's chief executive officer and managing director, Abhijit Roy, inflation is expected to rise, potentially affecting demand.

Berger Paints has implemented three price hikes since the start of April, with a fourth expected on 15 May. The company aims to use these staggered price increases to support its margins and offset the rising raw material costs. Despite the expected softening demand, Berger Paints is optimistic about its growth prospects, particularly in West Bengal.

Comparison of Revenue Growth and Net Profit

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The company's revenue from operations rose by 2.9% to ₹11,880.20 in FY26, while its net profit attributable to the owners fell by 4.5% to ₹1,126.87 crore compared to FY25. The revenue from operations in Q4FY26 increased by 6.1% to ₹2,868.03 crore from ₹2,704.03 crore in Q4FY25.

Berger Paints is also recalibrating its media strategy to improve brand visibility. The company has reduced its spending on non-core channels and increased its spending on sports advertising. This move is expected to enhance the brand's presence on sports channels.

The company is closely monitoring the disturbances linked to the West Asia conflict, including volatility in crude-based derivatives, rupee depreciation, supply-side disruptions, and potential inflationary pressures. Berger Paints is also keeping a close eye on the competitive intensity in the industry, which remains high.

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West Bengal Growth Prospects

Berger Paints expects growth prospects in West Bengal to improve following the change of government in the state. The company believes that the alignment between the state and central governments could accelerate infrastructure activity and economic growth. West Bengal is strategically important for Berger Paints, as it has its headquarters, two factories, and a strong brand presence in the state.

The board has recommended Abhijit Roy's reappointment as managing director and chief executive for another four-year term from 1 July 2027 to 30 June 2031, subject to shareholder approval. Roy has been credited with strengthening Berger's market position since taking over as CEO in 2012.