Berger paints India Limited released its investor presentation on Q3FY26 financial results, showcasing mixed performance with strong volume growth offset by margin pressures. The company achieved 8.5% standalone volume growth while facing challenging market conditions during the quarter ended December 31, 2025.

Quarterly Financial Performance

The company's standalone operations demonstrated resilience with volume-driven growth despite muted value performance.

The value-volume gap was driven by mix shift towards higher share of economy emulsions, textures, and tile adhesives, coupled with price corrections taken in the economy emulsion segment. Total income reached Rs. 2,700.73 crores compared to Rs. 2,653.80 crores in the previous year.

EBITDA and Margin Analysis

Despite achieving the highest gross margin in 15 quarters at 41.20%, EBITDA margin faced slight compression due to operational challenges.

The company maintained PBDIT margin within the guided range despite extended monsoon spillover into October that impacted demand momentum.

Consolidated Results Overview

Consolidated performance showed similar trends with marginal revenue growth and profit decline across operations.

For the nine-month period, consolidated revenue from operations increased 1.90% to Rs. 9,012.22 crores, while net profit declined 13.80% to Rs. 792.77 crores.

Business Segment Performance

The decorative business continued network expansion with installation of 2,500+ color bank machines and enhancing presence through 1,800+ stores during the quarter.

The industrial business delivered mixed results with auto segment showing recovery following GST 2.0 reforms implementation, while protective and general industries remained muted.

Exceptional Items and ESG Excellence

The company reported exceptional items totaling Rs. 50.00 crores in Q3FY26, primarily related to Labour Code implementation and warehouse fire incident.

The company achieved ESG excellence with a score of 64 across environmental, social, and governance parameters, positioning ahead of industry peers. The Kolkata corporate office received LEED Platinum certification in December 2025.

Berger Paints India has officially commenced production operations at its new manufacturing facility in Hindupur, marking a significant step in the company's operational expansion strategy.

Production Commencement at Hindupur

The paint manufacturer has successfully started production activities at its Hindupur site, which represents a key milestone in the company's manufacturing network expansion. The facility is now operational and contributing to the company's overall production capacity.

Cost Optimization Strategy

The primary objective behind establishing the Hindupur manufacturing facility is to achieve substantial reductions in production costs. This strategic initiative is expected to enhance the company's operational efficiency and improve its competitive positioning in the market.

Strategic Impact

The commencement of production at the Hindupur site demonstrates Berger Paints India's commitment to optimizing its manufacturing operations. By establishing production capabilities at this new location, the company aims to streamline its cost structure while maintaining product quality standards.

This development aligns with the company's broader strategy of expanding its manufacturing footprint to achieve better cost efficiency and serve its customer base more effectively.