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At this time, a very important and latest news is emerging for investors and business world from the corridors of Indian stock market, corporate world and financial results. Country’s well-known paint manufacturing company Berger Paints has officially released its financial and business results for the second quarter (Q2) of the financial year 2026-27. According to these results, which were announced after the close of the stock market, on the consolidated front of the company, good growth has been recorded in the income and net profit on an annual basis, but due to the continuous sharp increase in the cost of raw materials, the pressure on the operating margin of the company is clearly visible. To deal with this situation, the company has also indicated to increase the prices of its products in the coming months. Let us know in detail how this second quarter has been for Berger Paints in financial terms and what story its figures tell.
Berger Paints consolidated results: Net profit increased by 5.3% and revenue reached Rs 3,200 crore.
According to the figures presented by Berger Paints for the July-September quarter of the current financial year amid the festive season and construction activities, the overall performance of the company has been mixed. The company’s consolidated net profit has increased by 5.3 per cent year-on-year to reach Rs 217 crore, whereas in the same quarter of the last financial year, the company had earned a net profit of Rs 206 crore.
Along with this, there has also been a significant jump in the company’s total income i.e. consolidated revenue. In the quarter under review, the company’s revenue increased by 13.2 percent and crossed the figure of Rs 3,200 crore, whereas it was recorded at Rs 2,827.5 crore in the same quarter last year. However, the pace of the company’s EBITDA was a little slower than its profits. The company’s EBITDA increased by 5.1 percent to Rs 370 crore, which was Rs 352 crore last year. The company’s operating margin was impacted due to slow pace of profit and EBITDA, and the company’s EBITDA margin declined to 11.6 percent in the second quarter from 12.4 percent last year.
Performance remained weak on standalone basis: decline in profits and EBITDA
While on one hand the company registered growth in consolidated figures, on the standalone basis the performance of Berger Paints looked a bit weak. During the second quarter, the company’s standalone revenue from operations increased by 11.9 percent to Rs 2,750.1 crore, as against Rs 2,458.5 crore in the same quarter last year.
But in contrast, the company’s standalone EBITDA (excluding other income) declined by 4.4 per cent to Rs 297.5 crore as against Rs 311.2 crore in the same quarter last year. Apart from this, the company’s standalone net profit also declined by 7.3 percent and came down to Rs 163.3 crore. In the same quarter of the last financial year, the company had registered a profit of Rs 176.3 crore on standalone basis. These figures indicate that cost pressures at the domestic level have weighed heavily on the company’s core operations.
Inflation of raw materials becomes a big challenge: Company may increase prices in November and thereafter
Managing Director and Chief Executive Officer (CEO) of Berger Paints Abhijeet Roy While discussing the results, it has been clarified that the continuous sharp increase in the prices of raw materials has had its full impact on the operating profit of the company in this quarter. He said that considering the current global and domestic circumstances, there are no clear signs of raw material inflation coming down.
The company has now decided to take strict measures to protect its profits and margins from this increasing cost pressure. According to the management, Berger Paints may implement further increase in the prices of its paint products in the month of November and thereafter as per the market demand and requirement. Along with this, the company is also taking several other strategic steps to control costs, further improve operational efficiency, so as to protect the interests of investors and keep profit margins stable in the coming quarters.