Competition intensity in the paint industry seems to have stabilized, says Berger Paints MD

We continued to get market share in Q1, says Berger Paints MD & CEO

Berger Paints, the second largest paint company in India in terms of market share, has noted that the competition intensity in the industry, which had increased after the Birla Opus Paints arrived, seems to have been stabilized in recent months, stating that “initial euphoria” has disappeared completely “.

Despite the competitive pressure, Berger Paints has obtained market share within the listed companies in the first quarter that this fiscal, on the back of volume growth, Abhijit Roy, Managing Director & CEO, said in a post-earnings Investor Conference.

“We remain the market share, market share above 20 percent within the listed business room. Central growth with one digit was registered in Q1. The growth was moderated by heavier than expected monsoon by the end of May and June, PBDit (profit before depreciation, interest and taxes) of the boy, both in compliance.

“If you add the share of Birla (Birla Opus), then our market share is also slightly above 20 percent and we stay at that level. In fact, we have won the market share continuously, even with their presence,” he said.

EBITDA -Marge up

Obviously standing, the EBITDA margin was 17.4 percent in Q1FY26, which was higher with 20 basic points, and at the top of the 15-17 percent accompaniment, according to the domestic broker Elara Capital.

EBITDA -MARGE on a consolidated base, 40 BPS yoJ fell to 16.5 percent, dragged by marginal in British activities.

The Kolkata-headquartered Paints Maker Has Reported an 11 per cent Yoy decline in its consolidated Net profit to rs 315.04 crore for the first Quarter this fiscal, impacted by Early Onset of the Monson in India and Margin Presseds. Loss of RS 36.81 CRORE ARISING FIRE Incident at a Regional Distribution Center and Warehouse Facility in Kolkata.

In the first quarter, the gross margin improved 80 basic points yoj by 40.1 percent. The company pointed out that the resilience of the margin was powered by stable gross margins, leverage due to fixed costs and improved use in its Sandila factory in Uttar Pradesh.

“If you look at the gross margins, it has been very stable in the neighborhoods, despite the increased competition,” Roy told analysts during the Call Conference.

Pain points

Despite continuous challenges of the volatility of competition and raw materials, management has remained trust in maintaining an EBITDA margin in the reach of 15-17 percent, while profitability is gradually improved in subsidiaries.

In a series of questions about current competition intensity in the paint industry and other trends on the market, the Berger Paints MD said that competition intensity seems to have stabilized in recent months.

“In a competition there will be some loss of equity, which will probably happen for all players that we have seen in the recent past. Because every new player who comes in will get some share, and that will be at the expense of the existing players. Otherwise we would have had that share. So there is a loss from that perspective.

According to Roy, the first euphoria among dealers, after the Aditya Birla Group announced the launch of products and services under the new decorative paints Brand Birla Opus in February last year, has now completely disappeared.

“Initially the curiosity was, the enthusiasm was there that something new is happening. That is happening. That is completely gone. This is the time that people start to realize that it is not very easy to get extra margin. So what happened was that there was a competitor who was the basis,” he said. ”

Roy currently said that the network expansion is increasing heavy and inter-dealer competition, the profit margin for dealers is considerably reduced. “And as a result there is a little loss of interest from the dealers. And that is why people can feel that some of these dealers might come back to the old companies with whom they have treated in the past. Once once it sees that there is no big margin, and the movement of the product is initially not that far at a given moment.

Published on August 6, 2025