Berger Paints share price jumps over 9% after Q4 Results. Should you buy, sell or hold?

Berger Paints surged by over 9% on Wednesday, 13 May, following the Q4 earnings announcement. On Tuesday, 12 May, the company reported a 27.52% jump in consolidated net profit to ₹335.25 crore for the March quarter of FY26, supported by an improved product mix and lower raw material costs.

In the same quarter last year, the company reported a profit of ₹262.91 crore, according to a regulatory filing from Berger Paints India. For the quarter, revenue from operations was recorded at ₹2,868.03 crore, compared to ₹2,704.03 crore in the previous year. Total expenses increased to ₹2,499 crore, up from ₹2,380.55 crore.

In FY26, the consolidated net profit reached ₹1,128.02 crore, down from ₹1,182.81 crore in FY25, according to the company's statement.

Berger Paints announced that its board has proposed a dividend of ₹4 per equity share with a face value of Re 1 for the financial year 2025-26, pending shareholder approval.

Additionally, the board has sanctioned the re-appointment of Abhijit Roy as Managing Director & CEO for another four-year term beginning on 1 July 2027, following the completion of his current term on 30 June 2027.

Should you buy, sell or hold?

Nuvama Institutional Equities said Berger Paints reported a steady Q4FY26 performance, with revenue rising 6.1% YoY, largely in line with estimates, while EBITDA grew 12.6% YoY, coming in ahead of both its and Street expectations.

The brokerage highlighted that decorative volumes grew 11.8% YoY, marking an eight-quarter high, up from 7.4%in Q4FY25. Margins also improved, with standalone gross margin expanding 108 bps YoY to 42.3% and EBITDA margin rising 173 bps YoY to 18.3%, both at multi-quarter highs.

Looking ahead, Nuvama expects a turnaround for legacy paint players in FY27, driven by double-digit revenue growth that will support operating leverage. However, it flagged El Niño as a key risk for rural demand in the second half of FY27.

The brokerage has raised its FY27E/FY28E EPS estimates by ~2% and ~3%, respectively, and rolled forward its valuation to FY28, revising the target price to ₹635 (from ₹605 earlier), while maintaining a ‘BUY’ rating.

ICICI Securities said it remains constructive on Berger Paints, highlighting the company’s potential to gain market share as the paint industry recovers in FY27.

The brokerage noted that Berger has undertaken aggressive investments in urban distribution, expanded its network with 1,900 exclusive stores, and increased its tinting machine base by 26% in FY26. It also cited the launch of differentiated offerings such as the ‘Kool range’ as a positive.

ICICI Securities maintained an ‘ADD’ rating on the stock.

Berger Paints share price today

Berger Paints share price today opened at ₹506.20 apiece on the BSE. The stock touched an intraday high of ₹532.75 per share and a low of ₹505 per share.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that the stock prices have opened with a gap-up and are following buying with strong volumes. Prices are up by around 6% and have crossed 200dsma; further extension can be expected in the coming weeks towards 550. On the flip side, 480 is supported.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.