Berger Paints Q1FY26 Net Profit Falls 11% YoY Due to Fire Loss; Revenue Grows 3.6%

Kolkata, August 5, 2025 – Berger Paints India Ltd (NSE: BERGEPAINT, BSE: 509480) reported a fall in its consolidated net profit. The fall in profitability was largely attributed to a one-time exceptional loss of ₹36.81 crore arising from a fire incident at its Barasat warehouse in West Bengal. Despite this setback, the company recorded a 3.6% year-on-year growth in revenue from operations, which stood at ₹3,200.76 crore – indicating underlying demand stability even amid early monsoon disruptions.

Consolidated Financial Performance

Berger Paints reported a consolidated net profit of ₹315.04 crore for the quarter ended June 30, 2025, reflecting an 11% decline compared to ₹354.03 crore in Q1FY25.

The company demonstrated moderate top-line growth in Q1FY26 with consolidated revenues rising to ₹3,200.76 crore from ₹3,091.01 crore in the same quarter last year.

The company managed to maintain operational momentum despite macroeconomic headwinds and seasonal pressures. However, the fire-related loss of ₹36.81 crore dented the bottom line – resulting in a lower net profit of ₹315.04 crore. Earnings per share (EPS) declined to ₹2.70 from ₹3.03.

Management noted that while the loss impacted quarterly profitability, the company is pursuing an insurance claim and expects a partial recovery in the coming quarters.

Standalone Financial Highlights

On a standalone basis, Berger Paints registered a revenue of ₹2,862.62 crore in Q1FY26, a 2% increase over ₹2,806.31 crore in the year-ago period.

The marginal growth reflects stable performance in the domestic market amid an evolving competitive landscape. Net profit declined 3.8% year-on-year to ₹293.76 crore, compared to ₹305.52 crore in Q1FY25. Standalone EPS also fell to ₹2.52 from ₹2.62.

While the fire incident impacted the consolidated figures, its effect was also reflected in the standalone financials due to the loss being accounted for within the parent company’s books.

Fire Incident Impact

The fire at Berger’s Barasat regional distribution centre in early June led to extensive damage to both inventory and fixed assets. The company booked an loss (₹36.81 crore) in Q1FY26 as a result. Thankfully, no injuries or casualties were reported, and business continuity at nearby facilities was maintained. Berger has initiated insurance claims and is working with assessors to finalize the reimbursement process. The management assured that inventory replenishment and supply chain realignment are already underway. This aims to mitigate further disruption during the ongoing quarter.

Management Commentary

Abhijit Roy, Managing Director & CEO, stated, “Despite early monsoon disruptions, we posted sequential improvements in demand and gained market share. The volume-value gap narrowed significantly to 3.6% from 7% last fiscal. Robust growth was seen in waterproofing, construction chemicals, and wood coatings, with the automotive segment driving industrial performance.”

He further emphasised the company’s strategy of innovation and brand distinctiveness, along with caution around geopolitical risks and tariff uncertainties.

Segment & Subsidiary Update

Key growth drivers included waterproofing, construction chemicals, and wood coatings, while strong performances were also seen in subsidiaries and JVs like Berger Jenson & Nicholson (Nepal), Berger Becker Coatings, Berger Nippon Paint Automotive Coatings, and Berger Rock Paints; however, growth remained flat for STP Ltd and SBL Specialty Coatings Pvt Ltd.

Strategic Outlook

Berger Paints continues to invest in capacity expansion and product innovation despite temporary setbacks. In recent months – the company announced progress on its new manufacturing units in Uttar Pradesh and Tamil Nadu. This is aimed at enhancing production capacity and logistics efficiency. Additionally, Berger is expanding its premium offerings in the waterproofing and construction chemicals segments, which are expected to contribute to future growth

REF:https://nsearchives.nseindia.com/corporate/MTARTECH_05082025143230_Outcome.pdf

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