Berger Paints Q2 FY27 results: net profit down 7.3% to ₹163.31 crore, revenue up 11.9%

How did Berger Paints perform in Q2 FY27?

Berger Paints reported standalone revenue of ₹2,750 crore for Q2 FY27, up 11.9% from ₹2,458 crore in Q2 FY26, but down 14.8% from ₹3,227 crore in Q1 FY27. Total income was ₹2,781.19 crore, up 12.1% year on year and down 14.8% sequentially. The company also filed consolidated results for the quarter, which showed revenue growth of 13.2% in the investor presentation.

Standalone EBITDA was ₹297.54 crore, down 4.4% from ₹311.19 crore in Q2 FY26 and down 47.1% from ₹562.22 crore in Q1 FY27. The EBITDA margin fell to 10.8% from 12.7% and 17.4% in those periods. PBT was ₹218.18 crore, while net profit was ₹163.31 crore and basic EPS was ₹1.40, compared with ₹176.25 crore and ₹1.51 in the year-ago quarter.

What changed in Berger Paints' costs and profit?

Cost of materials consumed was ₹1,660 crore, up ₹344.36 crore or 26.2% from Q2 FY26, while total expenses rose ₹316 crore or 14.1%. Employee cost was ₹183.29 crore, up ₹0.74 crore, depreciation was ₹96.79 crore, up ₹10.87 crore, and other expenses were ₹526.87 crore, up ₹48.20 crore. Finance costs were ₹13.70 crore, down ₹0.11 crore. Management said gross margins were affected by double-digit raw-material inflation, liquidation of high-cost inventory and delayed Industrial price increases.

Other income was ₹31.13 crore, up ₹7.66 crore from Q2 FY26, while tax expense was ₹54.87 crore, down ₹3.81 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26. Management said approximately ₹22 crore of investment in the Rang Bana Rahe campaign affected quarterly margins.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹5,976.74 crore, up 12.3% from ₹5,321.09 crore in H1 FY26. Total income rose 12.6% to ₹6,047.01 crore, while PBT increased 13.9% to ₹718.47 crore. PAT was ₹531.99 crore, up 13.2% from ₹470.01 crore, and EPS was ₹4.56 compared with ₹4.03.

The standalone half-year filing showed an exceptional item of ₹36.81 crore in H1 FY26 and no exceptional item in H1 FY27. PBT before exceptional item and tax was ₹718.47 crore in H1 FY27, compared with ₹667.53 crore in H1 FY26.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets were ₹9,523.55 crore, compared with ₹8,946.20 crore at 31 March 2026. Total equity was ₹6,409.46 crore versus ₹6,342.90 crore, borrowings were ₹400 crore against no borrowings, and cash and cash equivalents were ₹50.16 crore against ₹151.94 crore. Inventories rose to ₹2,666.38 crore from ₹2,225.60 crore, while trade receivables increased to ₹1,407.58 crore from ₹1,129.27 crore.

H1 FY27 operating cash flow was ₹100.78 crore, compared with ₹625.65 crore in H1 FY26. Investing cash flow was negative ₹70.61 crore against negative ₹160.47 crore, financing cash flow was negative ₹131.95 crore against negative ₹500.00 crore, and capital expenditure was ₹203.37 crore versus ₹192.56 crore.

How has Berger Paints done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. Over the eight-quarter series, revenue peaked at ₹3,226.68 crore in Q1 FY27 and was lowest at ₹2,347.45 crore in Q4 FY25. In Q2 FY27, revenue was ₹2,750.06 crore, lower than the preceding quarter but above Q2 FY26.

PAT peaked at ₹368.68 crore in Q1 FY27 and was lowest at ₹163.31 crore in Q2 FY27. The EBITDA margin reached 18.3% in Q4 FY26 and fell to 10.8% in Q2 FY27, the lowest point in the eight-quarter series.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 5 November 2026. The filing also included the limited review reports issued by the statutory auditors and a press release on the results. The same-day investor presentation filing covered the quarter and half-year results; no dividend, fund raise or appointment was stated in the provided filings.

What did Berger Paints' management say?

Management said its priorities were to restore margins through calibrated price increases, cost-saving initiatives, efficiencies, cost optimisation and operating-cost discipline. It also said the company aimed to capture festive-season demand in Q3, build on automotive and industrial coatings, waterproofing, CC and wood coatings, and sustain investment in brands and innovation.

Management said it planned to activate retail, expand stores, build tinting and point-of-sale capability, normalise working capital as input costs stabilise, make disciplined capacity investment and maintain a net cash balance sheet. It said later Diwali shifted festive demand to Q3, while price-sensitive Putty, Textures and Enamel de-grew and extended rain affected Eastern markets.

Management identified crude-linked input costs, currency volatility, higher interest rates affecting housing and real-estate demand, geopolitical scenarios and high inflation as risks. It said the consolidated group remained cash-positive, while the standalone quarterly margin was affected by raw-material inflation, high-cost inventory liquidation, delayed Industrial price increases and the Rang Bana Rahe campaign.

How did Berger Paints shares react?

Earlier reaction-day moves were positive on 5 August 2026, 12 May 2026, 4 November 2025, 14 May 2025, 11 February 2025 and 5 November 2024. The stock fell on 5 February 2026 and 5 August 2025, when the recorded moves were 0.5% and 0.2%, respectively.

How did other Paints companies do?

Six other Paints companies that had filed for the quarter were compared with Berger Paints. Their median revenue growth was 15.1%, compared with Berger Paints’ standalone revenue growth of 11.9%. Two peers grew more slowly than Berger Paints, while four grew faster.

Profit was higher for two of the six peers, for which profit data was available. The peer comparison was as of 5 November 2026 and covered companies in the Paints industry.