Paint Stocks

Asian Paints, Kansai Nerolac, and Berger Paints are experiencing downward pressure with year-to-date declines. Elara Securities anticipates signs of recovery, with 12-13% revenue growth, although demand remains subdued ahead of Q2 FY27, driven by dealer inventory and competitive dynamics.

Berger Paints India reported a consolidated net profit of ₹335.3 crore for Q4 FY26, marking a 27.5% YoY growth. Revenue increased by 6.1% to ₹2,868 crore, with strong performance in the Decorative segment and improved margins. A dividend of ₹4 per share was also announced.

Paint stocks such as Berger Paints and Asian Paints faced significant losses amid escalating Middle East tensions and rising crude oil prices. Higher oil costs threaten profitability for paint manufacturers, potentially leading to increased consumer prices and lower demand.

Indian paint stocks, including Asian Paints and Berger Paints, fell on January 14 due to rising crude oil prices. Asian Paints shares dropped 2.1%, while Brent and WTI crude futures saw significant gains amid escalating tensions in Iran.

Berger Paints and Kansai Nerolac reported disappointing Q2FY26 results due to extended monsoon and competition. Berger's net profit dropped 23.6%, while Kansai Nerolac's profit rose 11.3%. Both companies anticipate demand recovery in H2FY26 driven by festive seasons.

Paint stocks are experiencing a positive trend with Asian Paints and Indigo Paints leading gains ahead of the festive season. Analysts predict demand growth despite potential regional slowdowns, with recovery expected in Q3 as conditions improve for painting activities.

Senior counsel Darius Khambata argued that the 1 July CCI order was issued without proper consideration or ‘any application of mind’, and said the company faces a similar investigation every time a new player enters the market.