Berger Paints Shares in Focus After Release of Q4FY25 Earnings: PAT Surged Over 15%

On May 15, Berger Paints share price rose nearly 3%, reaching a day high of ₹573.80 at 09:20 AM, after opening at ₹560.00 on BSE. The gain in Berger Paints share price follows the release of solid performance in Q4 FY25, driven by continued growth in the Decorative segment and robust results in the Industrial division. The company achieved high single-digit volume growth in the Decorative business, accompanied by a sequential rise in value growth. Despite heightened competitive intensity, Berger successfully maintained market share gains in the Decorative category during the quarter.

Operational efficiency played a key role, with the operating margin expanding significantly to 19.8%, the highest gross margin reported over the last 12 quarters, enabled by improved input cost management and disciplined overhead control.

Berger Paint Q4 FY25 Earnings Highlights

For the quarter ended March 31, 2025, Berger Paints reported a revenue from operations of ₹2,704.0 crore, marking a 7.3% increase compared to ₹2,520.3 crore in the same quarter of the previous financial year. This growth was driven by steady demand in the Decorative segment and solid traction in the Industrial business. The company's EBITDA (excluding other income) stood at ₹427.8 crore, registering a 21.9% year-on-year growth from ₹350.9 crore in Q4 FY24. This improvement reflects the benefits of enhanced gross margins and tight cost discipline.

Net profit for the quarter came in at ₹262.9 crore, an 18.1% increase from ₹222.6 crore in the corresponding period of the previous year, underlining the company’s strong operational execution and margin resilience.

Berger Paints FY25 Performance

For the full financial year ended March 31, 2025, Berger Paints posted revenue from operations of ₹11,544.7 crore, reflecting a 3.1% increase over ₹11,198.9 crore recorded in FY24. Despite a relatively moderate top-line growth, the company managed to maintain stable profitability. EBITDA (excluding other income) for the year was ₹1,856.1 crore, showing a slight decline of 0.3% from ₹1,861.3 crore in the previous year, primarily due to input cost pressures faced during earlier quarters.

However, net profit for FY25 increased by 1.1% year-on-year to ₹1,182.8 crore, up from ₹1,169.8 crore, indicating robust cost management and margin recovery towards the latter part of the year.

Berger Paints Outlook for FY26

Berger Paints anticipates an improved performance in FY26, particularly in the Decorative segment, which is expected to benefit from a rebound in urban demand. This resurgence is likely to be driven by higher disposable incomes, aided by recent tax incentives and a more favourable inflationary environment. Additionally, rural demand is projected to remain strong, bolstered by expectations of an above-average monsoon, which typically supports consumption in non-urban markets.

The company also expects to see a positive impact on value growth, as the effect of price reductions, which had weighed on revenues in FY25, begins to diminish. In the Protective Coatings segment, an uptick in performance is anticipated, supported by the government’s increased focus on capital expenditure and infrastructure development.

Also Read: Best Paint Stocks in India for May 2025

Conclusion

Berger Paints delivered a resilient performance in FY25, marked by steady growth in key segments, improved profitability in the fourth quarter, and sustained market share gains despite a competitive environment. The company's focus on cost discipline, margin enhancement, and operational efficiency has positioned it well for the year ahead.

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