Berger Paints India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Berger Paints India Ltd filed with BSE on 06 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Berger Paints reported standalone revenue growth of 12.7% and volume growth of about 8.4% for Q1 FY27, with decorative business outperforming at 13.5% value growth and nearly 20% operating profit growth. Standalone and consolidated PAT grew 26% and 29% respectively, while consolidated PBDIT margin expanded 40 basis points year on year. Management attributed the industrial segment's relatively lower growth to delayed price increases that will flow through in the second quarter, and discussed regional demand trends, competitive intensity, and subsidiary performance.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Value growth (standalone): 12.7% (Q1 FY27)
p. 2
“Value growth, as you have seen already, is at 12.7%.”
Abhijit Roy, page 2 of the filed PDF · View the filing
Decorative business value growth: 13.5% (Q1 FY27)
p. 2
“decorative business… Outperformed, with nearly 13.5% value growth.”
Abhijit Roy, page 2 of the filed PDF · View the filing
Decorative operating profit growth: nearly 20% (Q1 FY27)
p. 2
“And nearly 20% in terms of operating profit growth.”
Abhijit Roy, page 2 of the filed PDF · View the filing
Consolidated PBDIT margin expansion: 40 basis points (Q1 FY27 year on year)
p. 2
“And the consolidated PBDIT margin expanded by 40 basis points year on year.”
Abhijit Roy, page 2 of the filed PDF · View the filing
Standalone PAT growth: 26% (Q1 FY27)
p. 2
“Standalone and consolidated PAT increased by 26% and 29%, respectively.”
Abhijit Roy, page 2 of the filed PDF · View the filing
Volume growth: 8.4% (Q1 FY27)
p. 3
“If we look at the figures, volume, about 8.4, as I said, income from operations, 12.7, PBDIT IT growth, 12.6, and PAT growth, 25.5.”
Abhijit Roy, page 3 of the filed PDF · View the filing
Gross margin: 39.3% (Q1 FY27)
p. 3
“And this time, it was at 39.3.”
Abhijit Roy, page 3 of the filed PDF · View the filing
Operating profit margin (standalone): 17.4% (Q1 FY27)
p. 3
“Operating profit margin, however, was a strong 17.4%.”
Abhijit Roy, page 3 of the filed PDF · View the filing
Consolidated revenue growth: 12% (Q1 FY27)
p. 4
“The consolidated revenue grew 12%, with slight moderation versus standalone performance.”
Abhijit Roy, page 4 of the filed PDF · View the filing
Consolidated operating profit growth: 15% (Q1 FY27)
p. 4
“by 15% on the console level, with consolidated PBDIT margin expanding by 40 basis points.”
Abhijit Roy, page 4 of the filed PDF · View the filing
Consolidated PBT and PAT growth: 18.1% and 28.6% (Q1 FY27)
p. 4
“PVT and PAT grew by 18.1% and 28.6%, respectively.”
Abhijit Roy, page 4 of the filed PDF · View the filing
Store count: 1,900 plus stores (as on date)
p. 3
“Store footprint expanded, taking the total count to 1,900 plus stores as on date.”
Abhijit Roy, page 3 of the filed PDF · View the filing
Urban store count: around 900 plus (as on date)
p. 3
“With, urban stores alone, around 900 plus, and growing.”
Abhijit Roy, page 3 of the filed PDF · View the filing
Tinting machine installations: 2,100 plus (Q1 FY27)
p. 3
“Tinting machine installations crossed 2,100 plus for the quarter.”
Abhijit Roy, page 3 of the filed PDF · View the filing
Cash surplus: 1424 crores (end June FY27)
p. 4
“Growing cash surplus from 992 to $11.98 to now to 1424 crores as of end June financial year 27.”
Abhijit Roy, page 4 of the filed PDF · View the filing
Price increase this quarter: about 5% (Q1 FY27)
p. 6
“No, this quarter was about 5%.”
Abhijit Roy, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Operating margin — between 15% and 17% · FY27
stated firmly by Abhijit Roy
p. 5
“Operating margins are expected to remain within the guided range, which we have always said, that is between 15% and 17%.”
Abhijit Roy, page 5 of the filed PDF · View the filing
Revenue growth — double-digit revenue growth · FY27
stated conditionally by Abhijit Roy
p. 5
“Business outlook for financial year 27, double-digit revenue growth expected to sustain, supported by the full quarter impact of price increases in quarter two.”
Abhijit Roy, page 5 of the filed PDF · View the filing
Q2 operating profit — Q2 FY27
stated firmly by Abhijit Roy
p. 10
“I can say with, you know, a degree of certainty as far as Q2 is concerned, that the Q2 operating profit will be decent, the growth will be good.”
Abhijit Roy, page 10 of the filed PDF · View the filing
Q2 revenue growth vs Q1 — Q2 FY27
stated conditionally by Abhijit Roy
p. 22
“You know, so we would expect that, you know, the second quarter revenue growth might be slightly ahead of first quarter revenue growth.”
Abhijit Roy, page 22 of the filed PDF · View the filing
Volume growth — 7.5% to 8% · Q2 FY27
stated conditionally by Abhijit Roy
p. 6
“so we were at 8.5%, maybe it will be 7.5% to 8%, approximately, and a price increase which is there of, you know, varying from 7.5% to 8.59%.”
Abhijit Roy, page 6 of the filed PDF · View the filing
Tinting machine installations — 10,000 machines · for the year
stated as an aspiration by Abhijit Roy
p. 7
“Right, you know, to answer the first question, you know, our aspiration is to try and touch 10,000 machines.”
Abhijit Roy, page 7 of the filed PDF · View the filing
Capex — 600 to 800 rupees · for the year
stated firmly by Abhijit Roy
p. 18
“So, roughly it will be 600 to 800 rupees for the year.”
Abhijit Roy, page 18 of the filed PDF · View the filing
Volume growth maintenance
stated as an aspiration by Abhijit Roy
p. 35
“Understood, you know, so I think we should be able to maintain that. We have, as we said, you know, we are taking many initiatives”
Abhijit Roy, page 35 of the filed PDF · View the filing
Price cut post-Diwali — second half of FY27
stated conditionally by Abhijit Roy
p. 45
“Then, of course, you know, one can look at that price cut, you know, going into the second half, because then the margins would have gone up substantially, and it won't make sense to…”
Abhijit Roy, page 45 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained that less intense rains this year compared to last year's heavy rains have led to better offtake for exterior paints.
Answered by Abhijit Roy
Asked by Abneesh Roy, Nuvama: Why does management expect monsoon to benefit sales given a reported deficit this year?
p. 17
“So the oƯtake, therefore, has been much better than last year, in terms of exterior paint, you know, which is one of the major segments”
Abhijit Roy, page 17 of the filed PDF · View the filing
Management said the aspiration is to touch 10,000 machines for the year, mostly installed in under-indexed markets, and downplayed differences in machine size or connectivity versus new entrants.
Answered by Abhijit Roy
Asked by Abneesh Roy, Nuvama: What is the annual tinting machine target and how does the new machine compare to competitors?
p. 7
“Right, you know, to answer the first question, you know, our aspiration is to try and touch 10,000 machines.”
Abhijit Roy, page 7 of the filed PDF · View the filing
Management said July growth was reasonable and Q2 revenue growth might be slightly ahead of Q1, with volume growth slightly lower than Q1.
Answered by Abhijit Roy
Asked by Mihir P Shah: How is July volume growth shaping up and where will Q2 land?
p. 22
“July growth was reasonable.”
Abhijit Roy, page 22 of the filed PDF · View the filing
Management said normal mix improvement is about 0.4-0.5%, and that the 5% price/mix figure mostly reflects time-weighted industrial price increases rather than a large mix shift.
Answered by Abhijit Roy
Asked by Percy Panthaki: What was the mix effect this quarter compared to a competitor's reported positive mix?
p. 9
“Our… normally, the mixed changes is about 0.4 to 0.5%.”
Abhijit Roy, page 9 of the filed PDF · View the filing
Management attributed this to base effects, noting the leader had degrown last year while Berger had grown, creating a differential.
Answered by Abhijit Roy
Asked by Percy Panthaki: Why was Berger's decorative growth lower than the industry leader's this quarter?
p. 10
“And therefore, there was a 300… 3.6% diƯerential in terms of the, you know, value growth.”
Abhijit Roy, page 10 of the filed PDF · View the filing
Management said they expect to maintain volumes through network expansion, branding campaigns, and new product introductions, without a downside risk to volume.
Answered by Abhijit Roy
Asked by Avi Mehta, Macquarie: Can volume growth be maintained for the full year despite pricing increases?
p. 36
“should help us to maintain the volumes, you know, that we are talking about, and that's the objective, you know.”
Abhijit Roy, page 36 of the filed PDF · View the filing
Management said there's no major concern, citing muted regional economic growth, corrective measures on less profitable UK businesses, and improving product lines like Bolix panels.
Answered by Abhijit Roy
Asked by Avi Mehta, Macquarie: What is happening with Bolix's international business and its volatile growth?
p. 38
“You know, there's no concern as such, you know, as you know, those parts of the world are not growing really, fantastically well or something”
Abhijit Roy, page 38 of the filed PDF · View the filing
Management said sellouts have been and are expected to remain much better than last year due to less intense rainfall, offsetting any dealer destocking.
Answered by Abhijit Roy
Asked by Pratik Gothi, HSBC: Why would margins and mix improve quarter on quarter despite expected dealer destocking in Q2?
p. 41
“And we expect that August also should be on similar lines.”
Abhijit Roy, page 41 of the filed PDF · View the filing
Management said based on available figures, Berger likely gained a little market share in Q1 due to base effects, even though the leader grew faster.
Answered by Abhijit Roy
Asked by Aniruddha Joshi: How did market share move in Q1, especially in East India?
p. 43
“there we would have gained market share in quarter one, once again.”
Abhijit Roy, page 43 of the filed PDF · View the filing
Management said it depends entirely on raw material price trends, which remain volatile, making it difficult to comment on price cuts at this stage.
Answered by Abhijit Roy
Asked by Aniruddha Joshi: Is a price cut possible post-Diwali given crude price movements?
p. 45
“But as of now, very, very diƯicult to say, and I don't think anyone should comment at this stage what will happen in the second half is too far oƯ.”
Abhijit Roy, page 45 of the filed PDF · View the filing
Management explained Berger has a higher proportion of industrial business, where price increases were delayed and will only take effect in Q2, giving an advantage versus a peer that is primarily decorative.
Answered by Abhijit Roy
Asked by Aditya Bhartia: Why is Berger's margin commentary more optimistic than Asian Paints given the low-cost inventory unwind?
p. 56
“So, what happens, therefore, is that, you know, there was a significant delay in the price increases that we got.”
Abhijit Roy, page 56 of the filed PDF · View the filing
Management said margins should be fine given corrective measures taken at Bolix and STP, though future performance depends on raw material price trends.
Answered by Abhijit Roy
Asked by Amit Purohit: Will the subsidiary margin improvement story continue this year and over the medium term?
p. 59
“I think the margins will be pretty okay, you know, as far as the subsidiaries are concerned.”
Abhijit Roy, page 59 of the filed PDF · View the filing
Risks flagged
Delayed price increases in industrial business lines pressured gross margin
p. 5
“Gross margin moderated marginally, primarily due to delayed and partial pass-through of input cost increases in industrial business.”
Abhijit Roy, page 5 of the filed PDF · View the filing
Market competitiveness expected to stay elevated
p. 15
“Market competitiveness, however, is expected to stay elevated.”
Abhijit Roy, page 15 of the filed PDF · View the filing
Macro environment remains dynamic with crude oil, currency and geopolitical developments being monitored
p. 15
“Macroenvironment remains dynamic, with crude oil, currency, and geopolitical developments being closely monitored.”
Abhijit Roy, page 15 of the filed PDF · View the filing
UK operations remain subdued
p. 11
“UK operations remained subdued.”
Abhijit Roy, page 11 of the filed PDF · View the filing
Floods in Assam and Northeast impacted sales
p. 49
“Northeast, there's been, as you know, floods and, you know, a lot of issues there in Assam is in very bad shape.”
Abhijit Roy, page 49 of the filed PDF · View the filing
Raw material price volatility linked to geopolitical developments makes margin outlook uncertain
p. 34
“So, you know, it all depends. It's very diƯicult to say what margins will be. It depends on Mr. Trump than anyone else, because the raw material prices, you know, keeps shifting up and down.”
Abhijit Roy, page 34 of the filed PDF · View the filing
Competitive intensity from challenger brands remains elevated
p. 52
“So, it remains intense, and it remains challenging, in terms of the, intensity of competition.”
Abhijit Roy, page 52 of the filed PDF · View the filing
West Bengal government transition creating decision-making delays
p. 49
“in transition period, it is always a little bit of confusion. The decision-making has to happen”
Abhijit Roy, page 49 of the filed PDF · View the filing
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