A coat of caution as Berger Paints sees profits lose a little gloss

MUMBAI: Even the brightest colours can look dull under harsh light. Berger Paints India Limited closed the December quarter with steady revenues but softer profitability, as modest growth failed to offset margin pressure. For the quarter ended December 31, 2025, revenue from operations edged up just 0.3 per cent year-on-year to Rs 2,984.0 crore, compared with Rs 2,975.1 crore in the same period last year. Including other income of Rs 30.5 crore, total income stood at Rs 3,014.5 crore.

Costs, however, refused to stay in the background. Total expenses rose to Rs 2,627.1 crore, driven by higher employee costs of Rs 227.6 crore and other expenses of Rs 536.0 crore, even as raw material consumption eased to Rs 1,369.7 crore.

As a result, profit before tax slipped to Rs 352.2 crore, down from Rs 394.4 crore a year earlier. After a tax outgo of Rs 80.1 crore, net profit declined 8.3 per cent year-on-year to Rs 271.3 crore, compared with Rs 296.0 crore in the December 2024 quarter.

Operating performance mirrored the muted tone. EBITDA (excluding other income) stood at Rs 471.0 crore, marginally lower than Rs 471.7 crore a year ago, signalling limited operating leverage amid subdued demand.

The softer trend extended to the longer period. For the nine months ended December 2025, Berger Paints reported revenue from operations of Rs 9,012.2 crore, up 1.9 per cent year-on-year. However, net profit fell 13.8 per cent to Rs 792.8 crore, compared with Rs 919.9 crore in the corresponding period last year, reflecting sustained pressure on margins.

Earnings per share for the December quarter came in at Rs 2.33, down from Rs 2.53 a year ago, while nine-month EPS stood at Rs 6.78.

The numbers suggest a business still selling steadily, but not quite repainting the growth story with bold strokes. For Berger Paints, the December quarter was less about dazzling finishes and more about holding ground while waiting for demand and margins to brighten again.