Synopsis: Berger Paints is in focus after the company laid out a solid ambition for its future; it aims to sustain its 20% market share and achieve a revenue of Rs 20,000 crore by FY31.
The shares of the second-largest paint players are in focus after the company outlined its ambition for its future. In this article, we will dive more into the highlights of the management comments.
With a market capitalisation of Rs 62,783 crore, the shares of Berger Paints India Ltd closed at Rs 538.40 per share on Monday, down 2.6 percent from its previous day’s closing price of Rs 552.70 per share. Over the past five years, the stock has corrected by over 4.5 percent, underperforming NIFTY 50’s positive return of 92 percent.
Future Outlook
According to Berger Paints, October proved to be a poor month for the industry as a whole, mostly due to demand disruptions caused by the holiday season. However, things improved in November with single-digit growth, and the business appears hopeful about December, and it hopes to achieve a consistent value growth of 7–8 percent.
Additionally, they noted that the market’s fierce competitiveness has subsided. As demand steadily improves, Berger intends to maintain its advertising budget, indicating confidence in its approach and brand power.
Looking ahead, the company expects to return to double-digit growth by FY27, maintain its 20 percent market share, and is working toward an ambitious revenue target of Rs 20,000 crore by FY31, a sign that they clearly see a long, healthy runway for the business.
Financial and Other Highlights
Berger Paints reported a revenue from operations of Rs 2,827 crore in Q2 FY26, a minor growth of 2 percent as compared to Rs 2,775 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 12 percent from Rs 3,201 crore.
On a volume basis, Volume growth is reported at 8.8 percent in Q2 FY26 and a growth of 7.1 percent is observed in the first half of FY26. During the past few quarters, its margins have stayed consistent in the range between 39-40 percent.
Regarding its profitability, it reported a net profit of Rs 206 crore in Q2 FY26, a significant decline of 24 percent as compared to Rs 270 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 35 percent from Rs 315 crore.
Given Berger Paints’ steady positioning in the market and management’s confidence, the company clearly believes it has the ingredients to sustain its 20 percent market share and work toward the ambitious Rs 20,000 crore revenue target by FY31.
Historically, Berger has grown its revenue by a CAGR of 11 percent over the past 12 years, which suggests that such a long-term goal is not unrealistic, provided demand remains stable, competitive pressures do not intensify, and premiumisation continues to scale.
However, achieving this target will still depend on consistent volume growth, maintaining margins amid rising competition, and the broader health of the paints industry. For now, the outlook appears constructive, but investors may want to watch execution closely before drawing firm conclusions.
Berger Paints stands out as a top paint manufacturer in India, providing decorative, industrial, and protective coatings. With a solid distribution network, increasing housing demand, and a trend towards premium products, the company is steadily gaining market share in the paint industry.
Written by Satyajeet Mukherjee
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