Berger Paints Q2 FY26 Profit Plunges 23% as Extended Monsoon Disrupts Painting Activity Across India

Berger Paints India Ltd announced a significant decline in its quarterly financial performance, with consolidated net profit dropping 23 percent year-on-year to reach ₹206.4 crore for the quarter ending September 2025. The major paints and coatings manufacturer attributed this downturn primarily to prolonged monsoon conditions that severely impacted demand across multiple regions throughout the second quarter.

The company's financial disclosure, released after market hours on November 6, 2025, revealed that despite the profit setback, consolidated revenue from operations managed a modest growth of 2 percent year-on-year, climbing to ₹2,827.5 crore from ₹2,772.5 crore in the corresponding quarter of the previous fiscal year. Berger Paints had previously crossed the significant milestone of INR 10,000 crore in sales, making this quarterly performance particularly noteworthy for industry observers.

Operational Performance Under Pressure

The paint manufacturer's operational metrics reflected considerable stress during the quarter, with EBITDA excluding other income falling nearly 19 percent to ₹434.2 crore compared to ₹536 crore in the same period last year. This decline in operational profitability underscored the challenges faced by the construction and real estate sector during the extended rainy season.

Gross margins contracted to 39.6 percent from 40.4 percent year-on-year, representing a decline of 80 basis points. The margin compression was also evident when compared to the previous quarter's performance, which stood at 40.1 percent. This deterioration in profitability margins reflected both softer demand conditions and potential input cost pressures that impacted the company's bottom line despite maintaining volume growth.

Weather-Related Disruptions Impact Market Demand

Chief Executive Officer Abhijit Roy provided context for the company's performance, emphasizing that persistent rainfall throughout the quarter created challenging market conditions. The extended monsoon season proved particularly disruptive to painting and construction activities across various regions, traditionally peak periods for paint demand.

Roy stated that despite these weather-related headwinds, the company successfully delivered high single-digit volume growth and achieved low positive revenue growth. Monsoon-related disruptions have increasingly become a significant factor affecting quarterly performance in the construction materials and coatings industry, with prolonged rainy seasons delaying both residential and commercial projects.

Market Share Gains Despite Challenging Conditions

In a positive development for the company, Roy highlighted that Berger Paints continued to gain market share among major listed players in the paints and coatings sector during the April to September 2025 period when compared to FY25 levels. This market share expansion demonstrated the company's competitive positioning and brand strength even during challenging market conditions.

The ability to maintain volume momentum while simultaneously expanding market share suggested that Berger Paints was capturing demand at the expense of competitors, despite the overall market softness. This performance indicated robust distribution networks and effective marketing strategies that helped the company weather the seasonal downturn better than some of its rivals.

Financial Performance Highlights

Stock Market Response and Investor Sentiment

Shares of Berger Paints closed at ₹537.5 on the Bombay Stock Exchange on November 6, 2025, registering a marginal decline of 0.3 percent from the previous trading session's close. The relatively modest stock price movement suggested that investors had largely anticipated the challenging quarterly results given the widespread awareness of extended monsoon conditions affecting construction and related industries throughout the quarter.

Market analysts noted that the company's ability to maintain revenue growth and expand market share despite adverse weather conditions demonstrated operational resilience. The focus for investors would now shift to the company's performance in subsequent quarters as seasonal effects diminish and construction activity typically accelerates during favorable weather conditions.

Industry Implications and Future Outlook

The paint and coatings industry remains closely tied to the performance of India's real estate sector, with residential and commercial construction activities serving as primary demand drivers. Extended monsoon periods can significantly disrupt painting schedules and delay project completions, directly impacting quarterly revenues for paint manufacturers.

Industry observers will closely monitor margin recovery trends and demand patterns in the coming quarters as weather conditions normalize. The festive season and winter months typically witness increased construction and renovation activities, which could provide a boost to paint demand. Additionally, major real estate developers launching significant residential projects across Indian cities could support sustained demand for premium paint products.

The company's continued investment in distribution expansion, product innovation, and brand building initiatives are expected to support its market share gains trajectory. Analysts anticipate that as infrastructure activity resumes and the seasonal impact wanes, Berger Paints should witness gradual improvement in both revenue growth and profitability metrics during subsequent quarters of the fiscal year.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Readers are advised to consult with qualified financial advisors before making any investment decisions. The information presented here is based on publicly available data and company disclosures as of the date of publication. Market conditions and company performance may change, and past performance does not guarantee future results.