Why Did Berger Paints’ Q2 Profit Plummet by 24% to Rs 206 Crore?
Synopsis
In a challenging quarter, Berger Paints India Limited reported a staggering decline in profits, attributing the drop to adverse market conditions. Despite an increase in revenue, the company faced significant profitability challenges. How are they navigating these turbulent waters? Read on to find out!
Key Takeaways
Profit fell 23.6% year-on-year to Rs 206 crore.
Revenue from operations increased by 1.9% .
EBITDA declined 19% to Rs 352 crore.
Operating margin decreased to 12.4% .
Company faced challenges due to extended monsoon season .
Mumbai, Nov 4 (NationPress) Berger Paints India Limited disclosed a significant 23.6% year-on-year (YoY) decline in its consolidated net profit, amounting to Rs 206 crore for the quarter concluding on September 30 (Q2 FY26). This compares to a profit of Rs 270 crore during the same quarter of the preceding fiscal year (Q2 FY25), as per the company’s filing with the stock exchange.
Revenue from operations saw a modest increase of 1.9%, reaching Rs 2,827 crore compared to Rs 2,774 crore a year prior.
However, the company's profitability was adversely affected as earnings before interest, tax, depreciation, and amortisation (EBITDA) fell by 19%, declining to Rs 352 crore from Rs 434 crore the previous fiscal year.
The operating margin also decreased to 12.4% from 15.6% last fiscal year.
On a standalone basis, Berger Paints reported revenue of Rs 2,458.5 crore, mere 1.1% growth from Rs 2,430.7 crore in the same quarter of last year.
Standalone EBITDA dropped by 18.8% to Rs 311.2 crore, and net profit fell 23% to Rs 176.3 crore from Rs 229 crore in the last fiscal.
For the first half of the fiscal year ending September 30, the consolidated revenue rose by 2.8% to Rs 6,028.3 crore.
However, EBITDA declined by 7.9% to Rs 880.7 crore, and net profit decreased 16.4% to Rs 521.4 crore.
On a standalone basis, half-yearly revenue saw an increase of 1.6% to Rs 5,321.1 crore, while EBITDA fell 6.5% to Rs 810.7 crore.
Net profit for this period was recorded at Rs 470 crore, down 12.1% from Rs 534.5 crore a year earlier.
Abhijit Roy, Managing Director and CEO of Berger Paints India, indicated that the company encountered subdued demand due to a prolonged monsoon season affecting sales across various markets.
Nevertheless, Berger succeeded in achieving high single-digit volume growth alongside slight revenue growth.
Roy further mentioned that profitability was impacted by decreased sales of exterior paints, an unfavorable product mix, and increased investments in brand-building initiatives during the quarter.
On Tuesday, shares of Berger Paints India closed 0.58% lower at Rs 536 each on the BSE.
Point of View
Berger Paints’ reported decline in profits underscores the challenges facing the paint industry amid fluctuating demand and external market pressures. It’s crucial for the company to adapt its strategies to navigate these obstacles while focusing on maintaining brand strength and customer engagement.
NationPress
12 May 2026
Frequently Asked Questions
What caused Berger Paints' profit decline in Q2?
The profit decline was primarily due to muted demand from an extended monsoon season, which negatively impacted sales across various markets.
How much did Berger Paints' revenue increase?
Berger Paints experienced a slight revenue increase of 1.9% to Rs 2,827 crore for the quarter.
What is the company's outlook moving forward?
The company aims to recover by focusing on enhancing brand strength and adjusting product offerings to better meet market demands.
What was the EBITDA for Berger Paints in Q2 FY26?
The EBITDA for the quarter fell to Rs 352 crore, a decline of 19% from the previous year.
How did the company's stock perform following the report?
After the announcement, shares of Berger Paints India closed 0.58% lower on the BSE.
