Berger Paints India posts surprise profit drop as monsoon rains dampen demand

Berger Paints India

04/11/2025 11:01

Nov 4 (Reuters) - Berger Paints India BRGR.NS reported a surprise second-quarter profit drop on Tuesday, hurt by weak demand as heavy monsoons deterred retail consumers from executing their painting projects.

Consolidated net profit for July-September fell 23.5% on-year to 2.06 billion rupees ($23.4 million). Analysts, on an average, had expected profit to rise to 2.78 billion rupees, per data compiled by LSEG.

Revenues grew 2% to 28.27 billion rupees, but fell short of analysts' average estimate of 28.62 billion rupees.

"The extended monsoon season right through this quarter saw a muted demand scenario across most markets...," said CEO Abhijit Roy.

For further earnings highlights, click here.

KEY CONTEXT

India's $9.5 billion paints industry is struggling with weak retail demand as buyers switch to cheaper labels amid rising competition from new entrants such as Grasim Industries' GRAS.NS Birla Opus.

Analysts had expected Berger Paints to weather the retail weakness better than peers such as Asian Paints ASPN.NS, helped by its wider client base, after monsoon rains hit demand and weighed on rivals such as Kansai Nerolac KANE.NS.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Berger Paints India
BRGR.NS
46.21
29.00
8.41
11.00
Hold
22
0.94
0.71
Kansai Nerolac Paints
KANE.NS
26.61
16.54
6.77
19.98
Hold
11
0.90
1.00
Asian Paints
ASPN.NS
53.44
35.53
6.55
9.54
Hold
34
1.05
0.99
Akzo Nobel India
AKZO.NS
31.04
19.99
6.28
8.22
Buy
2
0.85
3.07

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.8950 Indian rupees

BRGR Q2 https://tmsnrt.rs/47FsgQv

 (Reporting by Hritam Mukherjee in Bengaluru)

 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))