Berger Paints lifts margin, but other income boosts Q4 profit
Revenue grew faster than costs year on year, while a 1.33-point tax-rate decline and other income supported the 27.52% net-profit increase.
Filed 12 May 2026, 15:31 IST · after market close · Berger Paints India Ltd (BERGEPAINT)
Key takeaways
- Consolidated operating margin improved 0.97 percentage points year on year as revenue grew 6.07% while expenses rose 4.84%.
- Net profit rose 27.52% year on year, but other income contributed 15.84% of pre-tax profit and the tax rate fell 1.33 percentage points.
- The stock gained 4.02% after the results, more than double its 1.85% median move across the previous eight result reactions.
Price around the results
Q4 margin recovery continued as revenue outpaced costs
Berger Paints reported consolidated revenue growth of 6.07% year on year, while expenses grew 4.84%, raising operating margin by 0.97 percentage points. The margin also improved 1.01 percentage points sequentially despite revenue falling 3.89%, because expenses declined 5.04%. At 16.79%, operating margin was 1.98 percentage points above the 14.81% median for the 93 Consumer Discretionary peers that had reported the quarter.
Profit growth had a meaningful non-operating and tax component
Net profit increased 27.52% year on year as lower interest costs and a 1.33-percentage-point reduction in the tax rate supported earnings. Other income rose 162.61% year on year and accounted for 15.84% of pre-tax profit, so the reported profit growth was not entirely operational. Depreciation increased 13.29%, partly offsetting the benefit from lower interest expense.
Margin has risen for two straight quarters after the Q2 trough
Operating margin climbed from 12.46% in Q2FY26 to 15.78% in Q3FY26 and 16.79% in Q4FY26. This marks a second consecutive quarterly improvement, while the year-on-year comparison also shows a 0.97-percentage-point gain. Management said extended monsoon conditions, economy-segment price cuts and a greater contribution from lower-ASP construction chemicals, textures and tile adhesives contributed to the earlier volume-value gap.
Management points to mix, distribution and pricing initiatives
Management said Construction Chemicals and Waterproofing continued to outperform in Q4, while automotive coatings recorded double-digit volume growth led by two- and three-wheelers. The company said its retail footprint reached about 1,900 stores after more than 700 additions during the year, and tinting-machine installations crossed 10,000 units, including more than 2,600 in Q4. Management expects gradual recovery across decorative and industrial businesses in FY27, while saying staggered price hikes and cost optimisation should support margins amid rising raw-material costs.
The market reaction was unusually positive for Berger Paints
The stock rose 4.02% on the first trading day after the results and gained 9.38% by the following day. That first-day move was well above the 1.85% median absolute reaction across the previous eight results, all of which were positive. The presentation also flags elevated competitive intensity and volatility in crude-based derivatives, rupee depreciation and supply disruptions as monitorables.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,868 cr | ₹2,984 cr | -3.89% | +6.07% |
| Other income | ₹69 cr | ₹-5 cr | — | +162.61% |
| Expenses | ₹2,386 cr | ₹2,513 cr | -5.04% | +4.84% |
| Operating profit | ₹482 cr | ₹471 cr | +2.27% | +12.60% |
| Operating margin (%) | 16.79% | 15.78% | — | — |
| Interest | ₹12 cr | ₹14 cr | -17.73% | -23.18% |
| Depreciation | ₹101 cr | ₹100 cr | +1.02% | +13.29% |
| Profit before tax | ₹438 cr | ₹352 cr | +24.49% | +25.31% |
| Tax | ₹103 cr | ₹81 cr | +27.65% | +18.64% |
| Net profit | ₹335 cr | ₹271 cr | +23.55% | +27.52% |
| EPS (₹) | ₹2.87 | ₹2.33 | +23.18% | +27.56% |
Operating margin of 16.79% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.02% | +3.87% |
| Next session | +9.38% | — |
| 5 sessions | +4.17% | +2.97% |
| 15 sessions | +1.26% | — |
| 30 sessions | +10.36% | — |
Volume on the results session was 31.59× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Construction Chemicals and Waterproofing continued to outperform across key markets in Q4 FY26.
- Automotive coatings delivered strong double-digit volume growth, driven by demand in two- and three-wheelers.
Guidance & outlook
- The company expects gradual recovery across its decorative and industrial businesses in FY27.
- Staggered price hikes are expected to support gross margins, while cost optimisation should keep operating margins within the guided range.
- Growth momentum is expected from Construction Chemicals, Waterproofing, Wood Coatings and upcoming product launches.
- Investments in branding, distribution expansion and stores-led urban initiatives are expected to deliver positive results.
- The protective coatings outlook remains positive because of expected increases in government capital expenditure.
Expansion
- The retail footprint reached about 1,900 stores after more than 700 additions during the year.
- Tinting machine installations exceeded 10,000 units, with more than 2,600 deployed in Q4.
New products
- New premium-emulsion offerings Kolor Plus and Kolor Plus Glow performed well.
New initiatives
- The company is continuing cost optimisation initiatives to support operating margins.
Competition
- Indian operations held about 20% market share among listed peers.
Problems & risks
- Competitive intensity is expected to remain elevated in FY27.
- West Asian disturbances, crude-derivative volatility, rupee depreciation, supply disruptions and inflation are sector monitorables.
- Extended monsoon and economy-segment price cuts contributed to the volume-value gap.
- BJN Nepal's revenue and profitability were subdued during the quarter due to elections.
- SBL Specialty Coatings' profitability was affected by scale, high raw material prices and mix.
What to watch
- Whether operating margin holds above 16.79% after its second consecutive quarterly increase.
- Whether other income remains below or above its 15.84% share of pre-tax profit.
- Whether the more than 700 retail-store additions and over 10,000 tinting-machine installations translate into continued revenue growth above 6.07% year on year.