Berger Paints shares rose 4% on Thursday, November 5, after the company reported a 13.2% revenue jump to ₹3,200 crore. While net profit grew 5.3% to ₹217 crore, rising raw material costs squeezed margins. The firm said it would implement further rounds of price hikes in November and beyond.
Berger Paints said growth in operating profit was impacted by a sharp increase in raw material costs. It added that it would implement further rounds of price hikes in November and beyond, depending on the need to offset cost pressures.
Shares of Berger Paints India Ltd. were trading 4% higher on Thursday, November 5, after the company reported its September quarter (Q2FY27) results, which showed growth in revenue, net profit and EBITDA, although operating margins declined year-on-year.
Berger Paints reported a 13.2% year-on-year increase in revenue to ₹3,200 crore for the quarter, compared with ₹2,827.5 crore in the corresponding period last year.
Net profit rose 5.3% to ₹217 crore from ₹206 crore in the year-ago quarter. EBITDA also increased 5.1% year-on-year to ₹370 crore, compared with ₹352 crore.
However, EBITDA margin contracted to 11.6% from 12.4% a year earlier, reflecting pressure on operating profitability.
The company said growth in operating profit was impacted by a sharp increase in raw material costs. It added that it would implement further rounds of price hikes in November and beyond, depending on the need to offset cost pressures.
Berger Paints also flagged foreign exchange volatility, geopolitical uncertainty and raw material cost concerns as key near-term risks to margins.