Indian paint makers to see slow earnings recovery as demand stays soft, brokerages say

Berger Paints India

18/02/2026 08:40

** HSBC and Macquarie expect a slow earnings recovery for Indian paint makers as demand stays soft, even as competitive intensity peaked out in the December quarter

** Top paint companies post slower sales growth in the December quarter, reinforcing a cautious near-term outlook

** HSBC warns the cycle turnaround could take longer, flagging potential structural concerns for the sector

** HSBC reiterates "Hold" on Asian Paints ASPN.NS (PT 2,900 rupees) and Berger Paints BRGR.NS (PT 540 rupees)

** HSBC pencils in high single-digit percent sector revenue growth through FY2027, despite 10%–12% industry volume growth in Q3

** Says higher dealer incentives, defence of strongholds, and some downtrading could crimp revenue growth

** Macquarie says demand uptick is key for stock performance; rates Asian Paints "Outperform" (PT 3,100 rupees), Berger "Underperform" (PT 410 rupees), and Kansai Nerolac KANE.NS "Neutral" (PT 220 rupees)

 (Reporting by Mridula Kumar in Bengaluru)

 ((Mridula.Kumar@thomsonreuters.com;))