Berger Paints’ second quarter profit falls 23% to Rs 206 crore on weak monsoon demand

Berger Paints India saw its consolidated profit for the September quarter fall 23% compared to the previous year to Rs 206.4 crore as prolonged monsoon rains weighed on demand during the quarter.The paint maker’s consolidated revenues rose around 2% y-o-y to Rs 2,827.5 crores, while earnings before interest, taxes, depreciation and amortization (excluding other income) fell nearly 19% y-o-y to Rs 434.2 crores.

“The extended monsoon season during this quarter led to a subdued demand scenario in most markets, even as we were able to achieve high single-digit volume growth and low positive sales growth,” CEO Abhijit Roy said in a statement.

“While sales growth was subdued this quarter, we continue to improve our market share for the April ’25 to September ’25 period versus FY25 levels across key listed companies in the paints and coatings sector, according to our estimates,” he said.

Gross margins for the quarter were 39.6%, compared to 40.4% a year ago and 40.1% a quarter ago.

Berger Paints reported its profit after market hours and the shares closed at Rs 537.50 rupees on the BSE, down 0.3% from the previous close. Roy said the gradual improvement in demand indicators in the domestic market across all segments is positive and this improvement in demand is likely to continue through the remainder of the fiscal. The company expects demand to revive post-Diwali, supported by improvement in weather and pent-up demand. It also sees gross margins improving in the near term, helped by favorable raw material prices and an improving product mix.