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Systematix Report
The brokerage Systematix highlighted that Berger Paints India Ltd. has delivered Q4 FY26 results ahead of its and the consensus estimates. Consolidated revenue growth of 6% YoY masked strong volume growth of 11.8% YoY (FY26 volume/ revenue: +8.5%/ +3% YoY).
Management indicated that while 3- 4% of volume growth came from channel pre-buying ahead of price hikes, 8-9% was secondary sales' growth which has endured, and improving MoM/ QoQ.
Berger paints highlighted that it has taken cumulative price hikes of 11-12% over March-May, against an effective cost-inflation of c.12% on its raw material basket (60% of the basket inflating by 20-22%) – thereby nullifying most of the input-cost pressure on the Decorative side (while Industrial could see some impact due to the transmission lag).
Despite the price hikes, management expects volume growth to remain largely resilient, expecting to retain FY26 growth levels. Consequently, Berger Paints sees the volume-value gap reversing to positive in FY27 with the price-demand elasticity playing out (home maintenance an imperative).
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