Berger Paints Q1 FY27 Results Analysis: Operating Margin Exceeds Guidance, PAT Grows Double-Digit (BERGEPAINT)

Berger Paints India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 3,226.68 Cr (+12.72% YoY) and PAT growth of +25.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Berger Paints delivered strong double-digit revenue and PAT growth in Q1FY27, with standalone operating margin above its guided band. However, gross margin compression from crude oil spike and a slight miss on consolidated PAT guidance temper the beat. The company's price hikes and cost discipline position it for continued value-led growth, with gross margin relief expected in H2 as crude prices eased.

Key Investment Insights

Key Positives

• Standalone revenue grew 12.72% YoY to Rs.3,226.68 Cr, consolidated revenue grew 11.97% YoY to Rs.3,583.75 Cr.
• Standalone PAT grew 25.50% YoY to Rs.368.68 Cr; consolidated PAT grew 28.56% YoY to Rs.405.01 Cr.
• Consolidated EBITDA margin expanded 44 bps YoY to 16.95%.
• Standalone operating margin of 17.42% exceeded the company's guided 15-17% band.
• Value growth outpaced volume growth (12.72% vs ~9%), driven by cumulative price hikes of ~11-12%.
• No exceptional items in Q1FY27, and the prior year's fire loss was fully reversed in Q4FY26.
• Subsidiaries contributed Rs.357.07 Cr revenue and Rs.35.66 Cr PAT to owners.
• Joint ventures contributed Rs.11.77 Cr net profit, performing strongly.

Risk Factors

• Standalone gross margin contracted 79 bps YoY to 39.28% due to crude oil spike and high-cost inventory.
• Consolidated gross margin contracted 55 bps YoY to 40.88%.
• Consolidated PAT growth of 28.56% slightly missed the company's '29%+' guidance.
• Industrial segments realized only partial gains from price increases implemented late in the quarter.
• Normalized PAT growth (excluding fire loss) was 14.8% standalone and 18.3% consolidated, lower than reported growth.