Berger Paints post 8.5% decline in Q3 net profit

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• Berger Paints Q3 net profit dropped 8.3% to Rs 271.35 crore due to tough market.
• Revenue steady at Rs 2,984 crore; standalone volume up 8.5% in December quarter
• Monsoon extension and shorter festive season hit demand and EBITDA performance.

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Berger Paints India Ltd reported a 8.3% decline in quarterly consolidated net profit at Rs 271.35 crore, as extended monsoon and shorter festive season played a spoilsport amid the intensifying competition in the paints sector. It report net profit of Rs  296 crore in the same quarter last year.

Revenue from operations was largely flat at Rs 2,984 crore as compared to Rs 2,975 crore last year. However, the company saw a  standalone volume growth of 8.5% in the December quarter.

Earnings before interest rates, taxes depreciation and amoritization (EBITDA) for the quarter ended December 31, 2025 was  Rs. 47 1 .0 crores against Rs. 47 1 .7 crores in the corresponding quarter of the last year, representing a decline of 0.2%, the company said in a regulatory filing on February 5.

"The extended monsoons into October and the shortened festive season led to a negative October, after which ·we saw progressive demand improvement over the rest of the quarter, enabling achievement of good volume growth of 8. 5% for the quarter," the company said.

Berger Paints flagged scale effect and continued investments in brand building as reasons for the subdued EBITDA performance.

On a standalone basis, revenue was flat at Rs was Rs. 2,595 crore, while net profit and EBIDTA declined 2.5 per cent and  0.1  per cent respectively.

"The gradual improvement in domestic demand indicators across segments and sequential monthly uptick in demand are positive indicators going forward. Results in the months ahead are expected lo reflect these improvements," the company added.

Last week, market leader Asian Paints delivered an underwhelming Q3, with topline 1.7% lower than estimated, due to slower growth in the decorative segment. Management attributed this to structural changes, resulting in slower growth in the industry, viz. a delayed repainting cycle and lower spends during occasions such as marriages.

"While the paint sector continues to navigate subdued demand - further dampened by seasonal headwinds and intense competition, there are early signs of demand recovery," HDFC Securities wrote in a note on January 28.