Shares of Berger Paints India Ltd declined nearly 2% to ₹561.50 on Wednesday, August 6, after the company reported an 11% year-on-year drop in consolidated net profit for Q1 FY26. The net profit fell to ₹315 crore from ₹353.6 crore in the year-ago period.
The dip in profitability was largely attributed to an exceptional loss of ₹36.81 crore caused by a fire at its Barasat distribution centre and warehouse. The company clarified that the fire originated from a neighboring firm’s premises and primarily damaged inventory and some fixed assets. An insurance claim is underway.
Despite the setback, revenue from operations rose 3.6% YoY to ₹3,201 crore. Operating profit (EBITDA) increased marginally by 1.2% to ₹528.5 crore, though the EBITDA margin slightly declined to 16.5% from 17% last year.
Managing Director & CEO Abhijit Roy said that despite early monsoon disruptions, the company witnessed month-on-month demand improvement and value growth outpacing peers. Focus segments like waterproofing, wood coatings, and the automotive division in the industrial segment showed strong performance.
However, the management flagged geopolitical risks and tariff-related uncertainties as key concerns going forward.
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