Interview with Abhijit Roy, Managing Director and CEO of Berger Paints
In a significant move for the Indian paint industry, Berger Paints has registered impressive growth in the first quarter of the current fiscal year, as reported on August 10, 2025. The company's resilience and strategic efficiency gains in a challenging market have driven an increase in its EBITDA margin and market share.
Berger Paints' financial performance in Q1 FY26 shows a 10% year-on-year revenue growth to Rs 1,107.90 crore and a 22% rise in EBITDA to Rs 226.80 crore[1]. This growth has resulted in an improved EBITDA margin of 20.5%, compared to 18.4% last year[1]. Notably, the company's net profit increased by 56% to Rs 100 crore in the same quarter, demonstrating strong financial discipline and market performance[1].
The paint industry faced challenges in the previous year, with demand declines and new entrants putting pressure on earnings[5]. Berger Paints' ability to grow revenue and profitability in such a context implies successful competitive positioning.
To further bolster its growth, Berger Paints has announced plans to fund the capital expenditure for its upcoming projects through internal accruals. The company will begin work on a greenfield project at Panagarh in West Bengal in April-May 2026, producing mostly industrial paints and construction chemicals[2]. This project is expected to be completed in one year or one-and-a-half years. Simultaneously, Berger Paints will also start work on a greenfield project in Odisha, producing decorative and industrial paints as well as construction chemicals. The Odisha plant is expected to take about two years to complete.
The total capital expenditure for these greenfield projects in Panagarh and Odisha is estimated to be around ₹1,800 crore[3]. In addition to these projects, Berger Paints plans to expand its production capacity for industrial paints at its Hindupur plant in Andhra Pradesh, which will be completed by December 2025[4].
Berger Paints' growth in Q1 was primarily from the automotive and decorative coatings segments[6]. The company has a lot of scope for growth in the decorative segment due to ongoing distribution expansion[7]. In fact, Berger Paints has recently launched a new product called Colour Plus, a premium emulsion for interior paintings[8].
The company's growth is not limited to Q1, as it aims to install at least 10,000 tinting machines in the next three years, having already installed 2500 tinting machines in the first quarter of the current fiscal[9].
However, Berger Paints is not without competition. Birla Opus Paints entered the paints industry more than a year ago, and the company is currently facing competition from them[10]. Despite this, Berger Paints has managed to increase its market share from 20.2% to 21.4% in the first quarter of the current fiscal[11].
In conclusion, Berger Paints' strong financial performance and strategic expansion plans indicate a promising future for the company. The company's ability to navigate industry challenges and maintain growth is commendable, and its strategic initiatives, such as the launch of Colour Plus and the upcoming greenfield projects, are likely to further bolster its market position.
References: 1. [Link to the source] 2. [Link to the source] 3. [Link to the source] 4. [Link to the source] 5. [Link to the source] 6. [Link to the source] 7. [Link to the source] 8. [Link to the source] 9. [Link to the source] 10. [Link to the source] 11. [Link to the source]
- Berger Paints' impressive growth in Q1 FY26 suggests potential expansion into other business sectors, such as the energy industry, given their demonstrated strategic efficiency and financial discipline.
- The company's successful venture into the automotive and decorative coatings segments open doors for partnerships with other premium industry players, including finance and automotive businesses.
- The subscription-based model could be another avenue for Berger Paints to explore, offering customers subscription packages for various paint and coating products, further boosting sales and market growth.
- To foster lasting relationships with clients, Berger Paints might consider collaborating with technology firms to develop innovative, user-friendly platforms for easy subscription management and customer support.
- By diversifying its portfolio into new business segments and offering value-added services such as subscriptions and comprehensive customer support, Berger Paints aims to maintain its competitive edge in the paint industry and continue its growth trajectory in the future.
