Shares of Berger Paints India were trading lower on Thursday, February 6, after the company reported a decline in consolidated net profit for Q3 FY26, weighed down by exceptional costs and mild margin compression. The stock fell 1.68% to Rs 464.35 on the NSE in early trade.
For the December quarter, Berger Paints reported a consolidated net profit of Rs 271.3 crore, marking a year-on-year decline of 8.3%. The drop in profitability was largely due to exceptional items worth Rs 90.12 crore, which included costs related to the implementation of new labour codes (Rs 53.31 crore) and losses from a warehouse fire incident (Rs 36.81 crore).
On the revenue front, performance remained largely flat. Revenue from operations rose marginally by 0.3% YoY to Rs 2,984.0 crore in Q3 FY26. EBITDA (excluding other income) declined 0.2% YoY to Rs 471.0 crore, with EBITDA margin slipping to 15.78%, compared with 15.85% in the year-ago quarter.
Standalone and nine-month performance
On a standalone basis, Berger Paints reported revenue growth of 0.4% YoY to Rs 2,595.0 crore. Standalone EBITDA declined 0.1% YoY to Rs 417.2 crore, while margins eased to 16.08% from 16.15%. Standalone net profit fell 2.5% YoY to Rs 298.4 crore, also impacted by exceptional items of Rs 86.50 crore.
For the nine months ended December 2025, consolidated performance showed continued pressure. Revenue grew 1.9% YoY to Rs 9,012.2 crore, while EBITDA declined 5.4% to Rs 1,351.6 crore, leading to a margin contraction to 15.00% from 16.16%. Consolidated net profit for the nine-month period fell 13.8% YoY to Rs 792.8 crore.
Management commentary and outlook
Management stated that Q3 EBITDA was delivered within the guided range, supported by strong standalone volume growth of 8.5% YoY, driven by improving demand trends. Growth was led by waterproofing, construction chemicals, wood coatings, and improved traction in automotive and industrial coatings.
However, the company flagged near-term risks, including forex volatility and geopolitical uncertainty, which could continue to exert pressure on margins. Challenges at overseas subsidiaries, including political instability in Nepal and sector-specific slowdowns, were also highlighted.
At the time of writing, Berger Paints was trading below its previous close of Rs 472.30, within a day range of Rs 463.30 to Rs 467.35, with a market capitalisation of around Rs 5.42 lakh crore.
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