Berger Paints (I) Limited Earnings Summary — Q1 FY2027
Berger Paints Reports Strong 29% Consolidated Profit Growth Amid West Asia Conflict Disruptions
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 25.0% sequentially in Q1 FY2027.
- Revenue of ₹3,584 Cr is 12.0% higher year-on-year.
- Revenue has compounded at 16.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹404 Cr is 28.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 30.5% annualised across the period.
- Operating margin stands at 16.9% in Q1 FY2027.
- Operating margin expanded by 44 bps year-on-year.
- Over the last two years operating margin has expanded by 5 bps.
- PBT margin is 15.1%.
- Expense growth of 11.4% remained below revenue growth of 12.0%.
- Operating profit of ₹607 Cr is 15.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 75/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,584 | 2,868 | 2,984 | 2,827 | 3,201 | 2,704 | 2,975 | 2,775 | 3,091 | 2,520 |
| Expenses | Improving | 2,976 | 2,386 | 2,513 | 2,475 | 2,672 | 2,276 | 2,503 | 2,340 | 2,569 | 2,169 |
| Operating Profit | Accelerating | 607 | 482 | 471 | 352 | 528 | 428 | 472 | 434 | 522 | 351 |
| Operating Margin | Accelerating | 16.9% | 16.8% | 15.8% | 12.5% | 16.5% | 15.8% | 15.9% | 15.7% | 16.9% | 13.9% |
| Other Income | Volatile | 51 | 69 | -5 | 37 | 3 | 26 | 27 | 30 | 46 | 48 |
| Interest | Softening | 12 | 12 | 14 | 17 | 14 | 15 | 16 | 17 | 15 | 18 |
| Depreciation | Stable | 103 | 101 | 100 | 97 | 94 | 89 | 89 | 89 | 87 | 87 |
| Profit Before Tax | Accelerating | 543 | 438 | 352 | 275 | 423 | 350 | 394 | 358 | 466 | 294 |
| Tax | Accelerating | 138 | 103 | 81 | 68 | 108 | 87 | 98 | 88 | 112 | 71 |
| Net Profit | Accelerating | 404 | 335 | 271 | 206 | 315 | 262 | 295 | 270 | 354 | 222 |
| Net Margin | Accelerating | 11.3% | 11.7% | 9.1% | 7.3% | 9.8% | 9.7% | 9.9% | 9.7% | 11.4% | 8.8% |
Key Takeaways
- Consolidated revenue grew 12% YoY to ₹3,583.8 crores, led by strong performance in Decorative and Automotive segments.
- Consolidated Net Profit increased by 28.6% YoY, benefiting from lower base effects and operational efficiencies.
- Value growth outpaced volume growth due to price increases, though the full benefit is expected in subsequent quarters.
- The West Asia conflict caused disruptions in crude-based raw material availability and pricing, leading to some gross margin moderation.
- Industrial segments realized only partial gains from price hikes implemented late in the quarter; full recovery expected in Q2.
- Joint Ventures (Berger Becker and Berger Nippon) delivered strong growth, contributing ₹11.77 crores to consolidated profit.
- Network expansion in low market share urban markets and new premium launches (Kolor Plus, Metallics) supported growth.
- The company maintains a focus on waterproofing and construction chemicals as key growth drivers.
Management Guidance
Management expects profitability and revenue growth to 'bump up' in the second quarter as price increases in industrial segments register fully. Despite geopolitical margin risks, they remain positive due to domestic demand indicators and favorable monsoon progress.
Sentiment Shift
Improving
Despite raw material inflation from geopolitical tension, the company achieved double-digit growth and outperformed its margin guidance range.
Outlook
The company expects a bump in profitability in Q2 FY27 as price hikes take full effect. Outlook remains positive on domestic demand and monsoon trends, though forex volatility and crude inflation remain key monitoring risks.
From the Annual Report (Key Quotes)
“The value growth outpaced volume growth on the back of the price increases with the full benefit to accrue going forward.”
“Inflation in crude based materials led to some moderation in our Gross Margins. However, prudent financial control and improved efficiencies led to an Operating Profit margin slightly ahead of the guidance range.”
“The remaining industrial segments only realized partial gains from their price increases... these gains will register fully in the second quarter which will likely bump up profitability.”
“Geopolitical uncertainty continue to pose near-term margin risks on both supply disruptions and raw material inflation.”
Official Quarterly Documents
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This summary is AI-generated from Berger Paints (I) Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.