Berger Paints India Reports 23.6% Drop in Q2 Net Profit Amidst Muted Demand

Berger Paints India Ltd announced its financial results for the quarter ended September 2025. The company's consolidated net profit saw a significant decline of 23.6% year-on-year, falling to ₹206 crore from ₹270 crore in the same period last year. However, revenue from operations showed a modest increase of 1.9%, reaching ₹2,827 crore compared to ₹2,774 crore in the corresponding quarter of the previous year. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) declined by 19% year-on-year to ₹352 crore, and the operating margin compressed to 12.4% from 15.6% in the prior year's quarter.

On a standalone basis, Berger Paints India reported revenue from operations of ₹2,458.5 crore for the quarter, an increase of 1.1% from the previous year. Standalone net profit decreased by 23% year-on-year to ₹176.3 crore.

For the half year ended September 30, 2025, consolidated revenue grew 2.8% to ₹6,028.3 crore, but consolidated net profit fell 16.4% year-on-year to ₹521.4 crore.

Abhijit Roy, Managing Director and CEO of Berger Paints India, attributed the muted demand to an extended monsoon season. He noted that despite this, the company managed to improve its market share. Profitability was impacted by a negative scale effect and an adverse product mix, with lower sales of exterior products and increased investments in brand-building.

Impact: This news directly affects investor sentiment towards Berger Paints India Ltd and potentially other paint sector companies due to shared market dynamics and input costs. It signals potential challenges in consumer demand and margin pressures. Rating: 7/10

Difficult terms: Consolidated Net Profit: This is the total profit a company makes, including the profits of all its subsidiaries. It's calculated after deducting all expenses, interest, and taxes. Revenue from Operations: This is the total income a company generates from its main business activities, such as selling products or services, before any costs are deducted. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): This is a measure of a company's profitability from its core business operations. It shows how much money the company earns before accounting for interest payments, taxes, depreciation, and amortization. Operating Margin: This ratio indicates how efficiently a company converts its revenue into profit from its operations. It's calculated by dividing the operating income by the total revenue, showing the percentage of each sales rupee that remains after covering variable costs of production. Standalone: This refers to the financial results of the company considered on its own, without including the financial performance of any of its subsidiaries. Adverse Product Mix: This happens when a company sells a higher proportion of products that have lower profit margins. This can lead to a decrease in overall profitability even if sales volume or total revenue increases.