Paint makers poised for a mixed Q1; won’t rush on price cuts

Indian decorative paint companies are expected to deliver around 13% aggregate revenue growth in Q1FY27, with Asian Paints and Berger Paints each likely clocking 9% year-on-year volume growth. Gross margins for Asian Paints and Berger are projected to contract 120-140 basis points year-on-year and 350-400 basis points sequentially due to higher raw material costs. Despite crude oil easing to 75-80 dollars per barrel from over 100 dollars, paint makers are unlikely to rush into price cuts and may wait until after the Diwali festive season, with any rollback expected to cover less than 50% of earlier hikes.